What is the break even point for an owner operator?
 

Lets take an owner operator that has the following monthly expenses:

authority $100
road taxes $500
maintenance $1500
other?
truck and trailer payment $2000
insurance $700
phone $100
internet $50
load boards $100

no tolls
no oversize loads
no parking
figure gas at $4/gal and mpg at 6mpg including idle time
figure he runs 8k miles/month


What does this driver have to make per mile to break even? $1.30????

edited to add in expenses and break even # in red

Re: What is the break even point for an owner operator?
 

Looking for others to do YOUR homework I see.... :lol:

Re: What is the break even point for an owner operator?
 

$5,000,000,000.74

Re: What is the break even point for an owner operator?
 

I was hoping you would prove yourself wrong.

I can add it up for you.
Let's say the expenses are $2950/mo(expenses for which I have costs listed) plus $5333 fuel.
He only needs to make $1.04/mile.

Re: What is the break even point for an owner operator?
 

what about his house and his car and his food and his kids expenses and his pets expenses is someone else paying all that for him?

Again, you've left out so very much.

Re: What is the break even point for an owner operator?
 

I'm not interested in what it takes to run a household or pay for food or anything else. Just the break even to run a simple flatbed.

Some people have multiple incomes. Could be they own a seperate business or they are married to someone who can pay the personal expenses.

Give me some figures.

Do your own research....... that is what a real business person does.

I already have and other than taxes, authority, maintenance and other minor incidentals there are no other expenses.

Re: What is the break even point for an owner operator?
 

Then what is the reason for owning a business?

My break even point includes My Mortgage, Life Insurance, IRA, health insurance, Maintenance reserve among many other things.

how about these? 8 16 402 and 65 1/2

Not getting much help here are you...... Nobody is going to do YOUR work for you.....

The posters at the truckers report didn't do YOUR work either, and you threw a tantrum....

Re: What is the break even point for an owner operator?
 

Not interested in any of those things except maintenance. Mortgage, life insurance, IRA, and health insurance are not mandatory to operate the truck.

I threw no tantrum. I called one poster slow because she said it took her years to learn how to strap a load. You and her probably rode the same short bus as kids.

Here is what charged posted at this other forum.... It is an interesting read... :lol: :lol:

http://www.thetruckersreport.com/tru...questions.html

Re: What is the break even point for an owner operator?
 

Your dad might be lucky to break even at $1.825 per mile. MAYBE!

ok, I have it figured to the exact penny, using only the factors you listed, please give me a valid credit card number and I will email you the results as soon as I get payment authorization. I am giving you special first time user rate of only $19.95, but HURRY this offer expires at midnight!

I had one question. "My biggest concern is being able to get loads at a rate where I can make some decent money. Since no one seems to share info on good brokers how does one go about finding good ones? Trial and error?"

Yet, no one wanted to answer it...Maybe they didn't know the answer so they focused on something other than the question. Kinda like you on this thread you can't focus on the topic.

What was funny about that thread is my father has been doing this for what? Two/three months? He hasn't killed anyone. Hasn't lost a load. Hasn't got a ticket. Hasn't been pulled over at a scale for inspection.

Again no one is going to do YOUR work for you......

Re: What is the break even point for an owner operator?
 

Road use taxes are $0.7/mile? For break even purposes if you are not making anything you should not be paying anything in income taxes.
I have no idea if $0.13 if valid for maintenance, but I have nothing else so I can go with it.
Other is pretty high at $0.25/mile. What are you including in that figure?

Adding $1.04, $0.13, $0.07, and $0.25 I get $1.49.
$1.825-$1.49 = $0.335

Where did you get the other $0.335 from?

I don't think you know which is why you don't post answers. I don't think I have read a post of yours which has been helpful...

You spend time and money finding good brokers or qualified shippers.

You run credit checks on both. You do so as often as once every three months. You learn the business, not by whining or bullying, but by taking hints, by asking pertinent questions, and giving valid and pertinent answers when you are asked a question.

3 months of new operation and hasn't been DOT'ed? Just exactly which scales has he been crossing?

Re: What is the break even point for an owner operator?
 

EXACTLY. If someone is in business only to break even, it is a lesson in futility, and running all the numbers in the world is irrelevant. The idea is to figure out what it takes to earn a profit after all expenses. It costs me between $7000 - $8000 a month to operate, not counting fuel. That includes everything that I receive a bill for.

Someone who goes in with the mindset of "they could own a separate business or they are married to someone who can pay the personal expenses" is setting themselves up for hauling cheap. If they can manipulate the figures to make it seem that they only need $1.04 per mile to operate, then that is where they are setting the bar. Personally, my bar is set at about $1.65 per mile, and I hope I never get that low, because I'm not in business to just pay my home bills and truck bills. I'm in business to earn a profit.

This is due to your lack of comprehension skills... What do you do for a living other than playing trucking mogul ????

Re: What is the break even point for an owner operator?
 

Yes they are! Why else would you run a truck???For the fun of it???

You really need to stop listening to "that guy you know who makes $2 per mile running flatbed".

There have been very good responses from some smart and profitable business people here, and charged is still clueless.....

Re: What is the break even point for an owner operator?
 

When you take advice from a hobby trucker, you get just that. Hobby advice.

Re: What is the break even point for an owner operator?
 

The difference between making a profit and breaking even is $.01.

The question was asked not because I want to buy a truck and run w/o making a profit but because I want to know what one would make if his average pay was $1.70/mi.

$1.70 minus the break even would be a good approximation of how much a trucker with the given costs could make.

Re: What is the break even point for an owner operator?
 

I guess I should have highlighted WAGES.

Quit wasting peoples energy.

Re: What is the break even point for an owner operator?
 

No. I just want to know the break even for the given situation.

Re: What is the break even point for an owner operator?
 

Wages for who? This is break even. No wages. Just straight driving w/o food, water, insurance, etc.

What does the $0.25 include?

Re: What is the break even point for an owner operator?
 

I give up, you win. I am an idiot(Orangetxguy you did not see that)

Re: What is the break even point for an owner operator?
 

Odd stuff..like health insurance, food, laundry, reading material, sirius.

And..exactly why would you not include driver wages for break even? Do you actually believe the IRS is gonna let you go without paying wages?

Re: What is the break even point for an owner operator?
 

I'm just looking for straight break even to run and operate the truck. Those expenses can be added in after the base cost to operate the truck are found.

As far as the $0.35/mile is concerned. I'm pretty sure most newbie OTR places are only paying newbies with no experience $0.25.

Re: What is the break even point for an owner operator?
 

What sort of BS game you running Sport?

You stated the truck has been running for the last two month's. YOU haven't figured out what the basic operating cost's are? You think wages aren't a portion of basic operating cost's? If you can not get a base operating cost from what has already been paid and you think wages are not a part of basic operating...get the hell off the road!

People like YOU are why freight rates are so cheap.


BOY....Go home! Your beginning to bother me!

While there may be some that pay that low, ( most are the ones that send the new driver to school on the company dime ) I think your lack of research on this point is as bad as your lack of research on operating costs of a truck.

The other posters here have been trying to give you good advice but you just won't listen. They have YEARS under their belt and know of which they speak.

In short: They can't give you the answers to your question because you are not asking the RIGHT QUESTIONS to begin with. :roll:

Re: What is the break even point for an owner operator?
 

First, it is not my truck.
Second, why include wages in the base cost of operating a truck?
The point of this is to figure out what it costs to have a truck on the road. IMO, the best way to do this is to add up what the base costs are. It is not to figure out how much one can make or should make. Those can be added in later.

I have no real experience driving a truck yet I have a CDL class A with several endorsements. I found no one to hire me for more than $0.25/mi. I have an excellent job history, no wrecks or accidents, and no history of drug use.

You're right. They won't give me an answer because I am not asking the question in the way they want me to ask it.

It is a simple question, "What is the base cost of operating a truck using the information in the first post?"