Running a trucking company means managing dozens of cost categories that fluctuate monthly. Fuel prices spike. Insurance premiums increase. Equipment breaks down. One miscalculation on your cost per mile, and you're hauling loads at a loss without realizing it until the bank account runs dry.

Understanding the true cost of trucking isn't optional. It's the difference between profitable growth and joining the 88,000 carriers that shut down in 2023. Here's the complete breakdown of truck running costs and what it actually takes to operate profitably in the USA.

Average Cost Per Mile Trucking: The Industry Benchmark

According to the American Transportation Research Institute (ATRI), the average cost per mile trucking operations runs approximately $1.85 per mile for long-haul carriers. This baseline figure from ATRI's operational costs research provides the foundation for understanding your expense structure.

However, this number varies significantly based on operation type, fleet size, and regional factors. Understanding these cost metrics helps carriers identify opportunities to reduce expenses and improve profitability.

Breaking Down Truck Running Cost by Category

The cost of trucking breaks down into seven major categories. Each represents a specific percentage of total operating expenses and requires different management strategies.

1. Driver Compensation: 43% of Total Costs

Driver costs represent the single largest expense category, accounting for approximately 43% of total operating costs. According to ATRI cost research, driver wages average $0.627 per mile with total driver-based costs reaching $0.809 per mile when including benefits and payroll taxes.

For a truck running 100,000 miles annually, that's over $80,000 in driver-related expenses per truck. Competitive compensation is essential for retention in a market with chronic driver shortages.

Keeping drivers paid accurately and on time directly impacts retention. Automated payroll systems reduce errors and ensure drivers trust their settlements.

2. Fuel Expenses: 20-30% of Operating Costs

Fuel costs represent the most volatile expense category at 20-30% of total costs. At current diesel prices around $4.00-$4.50 per gallon, fuel expenses can reach $0.64 per mile or higher.

A truck averaging 6 miles per gallon running 100,000 miles annually burns approximately 16,667 gallons, costing $66,668 to $75,000 in fuel alone. Route optimization, fuel cards with discounts, and driver behavior monitoring all impact this critical cost category.

3. Equipment Costs: 25-30% Combined

Equipment expenses combine truck and trailer payments with ongoing maintenance and repairs.

Preventive maintenance costs significantly less than emergency repairs. Track maintenance schedules per truck and monitor repair patterns to identify vehicles requiring excessive service.

4. Insurance: 5% of Operating Costs

Insurance costs typically run $0.07 to $0.10 per mile, representing approximately 5% of total operating costs. Carriers with poor safety records can see costs double to $0.20 per mile or higher.

Required coverage includes commercial auto liability, cargo insurance, physical damage coverage, and workers' compensation. Annual premiums range from $7,000 to $20,000 per truck depending on operating authority and safety record.

5. Compliance and Regulatory: 2-3% of Costs

Compliance costs include licensing, permits, IFTA reporting, DOT inspections, and safety compliance at $0.02 to $0.03 per mile. Non-compliance penalties exceed normal costs exponentially.

6. Variable Operational Costs: 3-5%

Variable costs include dispatch fees (1-3% of revenue), factoring fees (1-2% if using factoring), tolls, scales, and lumper fees. These fluctuate with load volume and route selection.

7. Administrative and Technology: 5-10%

Administrative expenses include office rent, utilities, back-office staff, accounting services, and technology subscriptions. These overhead costs must be allocated across your entire fleet.

Time wasted without proper TMS software translates directly into administrative costs.

Owner Operator Costs Per Mile: Different Economics

Owner operator costs per mile differ from company driver operations. Owner-operators carry truck payments, insurance, and fuel costs directly while company drivers receive wages and benefits.

Typical owner-operator cost breakdown per mile:

• Fuel: $0.60 - $0.70

• Truck payment: $0.30 - $0.40

• Insurance: $0.12 - $0.18

• Maintenance: $0.15 - $0.20

• Permits and compliance: $0.03 - $0.05

• Total: $1.20 - $1.53 per mile

Owner-operators need to net at least $0.50 - $0.70 per mile after expenses to justify the business risk and time investment. This means accepting loads at $1.70 - $2.20 per mile minimum depending on their specific cost structure.

How to Calculate Your Break-Even Cost Per Mile

Calculating your total cost per mile determines the minimum rate you can accept and still cover expenses. Here's the formula:

Fixed costs per mile: Add all annual fixed costs (truck payments, insurance, permits, base salaries) and divide by annual miles.

Variable costs per mile: Add fuel, maintenance, tolls, driver per-mile pay, and other variable expenses.

Break-even = Fixed cost per mile + Variable cost per mile

Add 15-20% margin to your break-even to account for variability and generate profit. Any rate below break-even loses money on every mile.

Example Calculation for Company Driver Operation

Truck running 100,000 miles annually:

• Driver compensation: $80,900 ($0.809/mile)

• Fuel: $64,000 ($0.64/mile)

• Truck payment: $24,000 ($0.24/mile)

• Maintenance and tires: $19,000 ($0.19/mile)

• Insurance: $9,000 ($0.09/mile)

• Compliance: $2,500 ($0.025/mile)

• Dispatch and factoring: $3,000 ($0.03/mile)

• Administrative: $5,000 ($0.05/mile)

Total: $207,400 or $2.074 per mile

To generate 15% profit margin, this carrier needs to average $2.38 per mile. Accepting loads below $2.07 loses money.

Why Cost Tracking Determines Success or Failure

Carriers that survive downturns track costs obsessively. They know profitability by truck, by lane, and by customer. When rates drop, they identify which lanes remain profitable and which to avoid.

Carriers operating on spreadsheets discover unprofitable operations weeks too late. By then, they've hauled dozens of loads losing money on each one. Moving beyond spreadsheets provides real-time visibility into what's working.

The 7 key financial metrics every carrier should track become impossible to monitor accurately without systems connecting operations and accounting.

Using ATRI Cost Research for Benchmarking

The American Transportation Research Institute publishes annual operational cost studies providing industry benchmarks. Their research breaks down costs by category, fleet size, and operation type.

Compare your costs against ATRI benchmarks to identify categories running higher than industry average. If your fuel costs exceed $0.70 per mile while the benchmark sits at $0.64, investigate route efficiency and driver behavior.

Download the latest ATRI operational costs report to benchmark your performance against industry standards and identify improvement opportunities.

How Technology Reduces Operating Costs

Modern carriers use technology to reduce costs across every category. Automated dispatch reduces administrative overhead. Route optimization lowers fuel consumption. Integrated accounting eliminates duplicate data entry. Real-time analytics identify inefficient trucks and lanes immediately.

Fleet management automation catches problems before they become expensive. Financial management within TMS provides the visibility needed to make profitable decisions.

Datatruck is the carrier-first TMS built specifically to help carriers understand and manage operating costs. Our platform provides real-time cost tracking per truck, per load, and per lane. You know immediately whether a rate covers your costs and provides acceptable margin.

TruckGPT automates document processing to reduce administrative costs. Direct integrations with fuel cards, ELDs, and accounting systems eliminate manual data entry. See how Ray Cargo scaled profitably by focusing on cost visibility and operational efficiency.

Book a free demo and see how Datatruck provides the cost visibility carriers need to operate profitably in any market condition.