criticalmass
Seasoned Expediter
I am calculating PPR (Price Per Run). (Total Miles - DHPL) ÷ Gross Pay. Is this correct or do I need to reverse the formula to get the correct result?
Math problem
- Thread starter criticalmass
- Start date
criticalmass
Seasoned Expediter
Not quite sure if it is a CPM or not!
I believe that is what you are seeking if you are trying to determine what total rate you need to be profitable.
A good source is OWNER-OPERATOR INDEPENDENT DRIVERS ASSOCIATION - REPRESENTING TRUCKERS
They have a spread sheet that you can use to arrive at that figure.
Scroll down to the truck tools for what you are seeking.
A good source is OWNER-OPERATOR INDEPENDENT DRIVERS ASSOCIATION - REPRESENTING TRUCKERS
They have a spread sheet that you can use to arrive at that figure.
Scroll down to the truck tools for what you are seeking.
criticalmass
Seasoned Expediter
Not exactly what I was looking for. I do use these spreadsheet but, I am wanting to know if this formula PPR (Price Per Run). (Total Miles - DHPL) ÷ Gross Pay. Is this correct or do I need to reverse the formula to get the correct result? Example: Total miles is 813, DHPL is 500, gross pay is $594.66. (813 - 500) / $594.66 = $0.53 OR Gross pay ÷ (Total Miles - DHPL)... $594.66 / (813 - 500) = $1.90. Which one is the correct formula?
If I am understanding you correctly, take the total run revenue and divide it by the total mileage to do the run. Then compare that to your CPM to determine its profitability.
In your case, if you ran 813 miles and recieved 594.66, then your revenue per mile is roughly .73 cent.
In your case, if you ran 813 miles and recieved 594.66, then your revenue per mile is roughly .73 cent.
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nightcreacher
Veteran Expediter
I figure my loads like this.First the DHPL,thats the dead head to planning layover,then I add the actual dead head to pick up,finally the load itself.Now you take the total pay for all the miles,and divide this into the total pay,this will give you your pay per mile,and as Dave said.if your total miles were 813,and all you received was $594.66,your pay per mile would be 73 cpm,but if your trying to figure your pay per run,you would need to take a series of runs and take their average,that would give you your pay per run.Dave hope your math was right,lol I didnt check it.The math of 813 minus 500 the dhpl,but what happened to the dh to pick up
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There are two different things you need to know and do. First you need to know your cost per mile (CPM) to run the truck. The OOIDA worksheet is a good start and then tailor the spreadsheet to meet your needs.
When you get a load opp look at the bottom line which is your total miles and total pay then divide total miles by total pay which gives you pay per mile (PPM). If the load is straight through you just compare the ppm to your cpm to run the truck if the PPM is more except the load. There is one more figure that comes into play when accepting a load. Look at the dates and if the load takes a few days to deliver you also need to know what income you need per day to stay profitable. Some loads look great over $2.00 a mile but if they take two days to deliver and only go 100 miles that is not good pay per day.
When you get a load opp look at the bottom line which is your total miles and total pay then divide total miles by total pay which gives you pay per mile (PPM). If the load is straight through you just compare the ppm to your cpm to run the truck if the PPM is more except the load. There is one more figure that comes into play when accepting a load. Look at the dates and if the load takes a few days to deliver you also need to know what income you need per day to stay profitable. Some loads look great over $2.00 a mile but if they take two days to deliver and only go 100 miles that is not good pay per day.
nightcreacher
Veteran Expediter
you divide the miles into the money,that will get you your pay per mile.Now subtract your cost per mile and you will know if the load is in the black profit or in the red,loss
criticalmass
Seasoned Expediter
Thank you nightcreacher "divide the miles into the money,that will get you your pay per mile". That would be PPM which is basically the same thing as PPR. The 813 was 29 miles of paid DH to P/U plus 284 run miles plus 500 DHPL miles. I was just becoming confused on my formula that I showed in my last post. $0.53 vs. $1.90. Same numbers just arranged in a different order.
nightcreacher
Veteran Expediter
Depending how you look at it,pay per run is actually different than pay per mile.pay per run would be an average of all the money you have taken in,divided by the number of runs. pay per mile is the number of total miles divided into the revenue.Cost per mile takes in a number of factors,what you pay out every month ,whether you drive the truck or not,(fixed costs) money spent on the road in operation of the truck,( variable costs),these two factors divided by your total miles will give you your cost per mile.