Break-Even Calculator
The miles you need to run each month just to cover your costs, and the rate that gets you there.
Your costs and rate
Truck payment, insurance, permits. From the CPM calculator.
Fuel, maintenance and driver pay per mile.
Break-even miles per month
How break-even is calculated
- Contribution per mile = freight rate − variable cost per mile
- Break-even miles per month = fixed costs ÷ contribution per mile
- Profit at your planned miles = (contribution per mile × planned miles) − fixed costs
Below break-even miles, you are still losing money on fixed costs even though each mile driven brings in more than it costs. Above break-even, every extra mile is profit at your current rate.
Frequently asked questions
How many miles does an owner-operator need to break even?
It depends on fixed costs and the gap between your freight rate and variable cost per mile. Divide fixed costs by (rate minus variable cost per mile) to get break-even miles for the month. Enter your own numbers above for your figure.
What is the minimum rate per mile to break even?
The minimum rate equals your variable cost per mile plus fixed costs divided by the miles you plan to run. Running more miles lowers the minimum rate needed, because fixed costs are spread over more miles.
What if my variable cost is higher than my rate?
Then every mile loses money before fixed costs are even considered, and driving more miles makes the loss bigger, not smaller. The fix is a higher rate or lower variable costs (fuel, maintenance), not more miles.
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