CPM Question

[SalParadise]

How do you figure your truck/van payment into your cost-per-mile?
I have read somewhere that 20% of your mileage rate should go towards payment. But what if your are trying to put that number at a hard cents per mile number.
I am trying to get a number to use for a straight truck. I am using 1300 miles per week avg at 1.10 a mile(I am not using any FSC numbers as I will use the FSC numbers for fuel costs).
At 20% that is .22cents-per mile.
Is that a good number or is my thinking way off?
Thanks in advance for any help.

 

[x06col]

I wouldn't try to place a "payment" value on cost per mile. Rather, you may consider estimating how many miles your vehicle is good for, and what the repair /maint costs will be for those miles. ie. vehicle cost $20,000, repair/maint cost $5,000, total $25,000. You plan to run it 400,000 miles. $25,000 divided by 400,000 miles = seven cent per mile. And, if'n you figgure the van worth anything w 400K miles take that off the 25K.

 

[Jack_Berry]

use this tool. there are a bunch of things to look at here but 8 is your cpm spreadsheet.


Owner-Operator Independent Drivers Association

 

[SalParadise]

Thanks for the info
I didnt think about using the cost of the vehicle vs. the life of the vehicle.
The spreadsheet has also giving me many more things to think about.
Thanks all

 

[nightcreacher]

You can figure your monthly truck payment but, you can only write off the depreciation and interest.The payment will be a constant cost,so you would divide the monthly miles into that payment.If your figuring percentage,then divide by your monthly income.Its not rocket science