Running an independent trucking business that makes $100K or more in annual revenue can make it sound like a fantastic business. But don’t overlook the expenses that go into operating this transportation business. This Solo Trucking Business Financial Calculator helps you make informed decisions by estimating earnings, expenses, and estimates the amount of time it will take to reach profitability based on your startup costs.
Solo Trucking Business Calculator
Estimate your revenue, costs, and break-even timeline
Truck Acquisition
Business Setup
Revenue Projections
Operating Costs
Additional Monthly Costs
How to use the calculator
1. Truck Acquisition
Here, you’ll find an explanation of how to use the tool and the data sources that support the assumptions made for default settings. First things first, you’ll need to get a truck.
If Purchasing enter the truck’s purchase price: The average cost of a new semi-truck can range from $70,000 on the low end to $155,000 or more for high-end models (Source 2: Bankrate).
Specify your down payment: Set the amount you plan to pay upfront.
Input the loan interest rate: The typical interest rates for semi-truck financing range from 7% to 35% (Source: Bankrate).
Set the financing term (in months): Specify the number of months over which you will pay off the loan.
If Leasing: Enter the lease duration in months and lease payment.
Start a truck driving business and see the country.
2. Business Setup
Enter your initial investment details:
Personal investment amount: Enter the amount of personal funds you’ll use to start the business.
Any additional business loans: Specify additional financing for setting up your business.
Loan terms and interest rates: Include details about the terms and rates for any loans used.
3. Revenue Projections
Input your operational parameters:
Number of driving days per week: Set how many days per week you plan to drive.
Expected miles per day: On average, truckers drive 400-600 miles per day (Source: Schneider Jobs).
Pay rate per mile: The industry average is approximately $0.66 per mile (Source: Werner).
4. Operating Costs
Enter your main expenses:
Fuel cost per mile: The average fuel cost per mile in 2022 was $0.41 (Source: ATRI).
Maintenance cost per mile: Routine maintenance typically costs between $0.01 and $0.05 per mile (Source: Kyrish Truck Centers).
Monthly insurance cost: If you operate independently, truck insurance can cost between $1,000 to $1,800 per month, whereas working through a carrier can lower insurance to $400 – $600 per month (Source: Simplex Group).
Any additional monthly costs: Enter other recurring monthly expenses, such as permits, licenses, and administrative costs.
Understanding the tool calculations
Revenue Calculations:
Monthly Miles = (Miles per Day × Driving Days per Week × 52 weeks) ÷ 12 months
Monthly Revenue = Monthly Miles × Pay per Mile
Annual Revenue = Monthly Revenue × 12
For example, I make these default assumptions in the tool: driving 500 miles per day, 5 days a week, at $0.66 per mile. Keep in mind Indeed says the average trucker will make $91,594 in gross revenue per year so I went a bit conservative for the default estimates.
- Monthly Miles = (500 × 5 × 52) ÷ 12 = 10,833 miles
- Monthly Revenue = 10,833 × $0.66 = $7,149
- Annual Revenue = $7,149 × 12 = $85,788
Cost Calculations
Variable Costs per Month:
Fuel Costs = Monthly Miles × Fuel Cost per Mile
Maintenance Costs = Monthly Miles × Maintenance Cost per Mile
Fixed Costs:
Monthly Truck Payment (if purchasing) = P × (r × (1 + r)^n) ÷ ((1 + r)^n - 1)
Where:
- P = Principal (Purchase Price - Down Payment)
- r = Monthly Interest Rate (Annual Rate ÷ 12)
- n = Number of Months
Total Monthly Expenses:
Total Expenses = Variable Costs + Fixed Costs + Insurance + Additional Costs
Profitability Analysis:
Monthly Net Profit = Monthly Revenue - Total Monthly Expenses
Break-even Period (months) = Total Investment ÷ Monthly Net Profit
Should you get into the trucking business?
“If you don’t come into trucking with a goal in mind of what you’re trying to achieve, you’re not going to succeed.” Tyler Freed, from The Living Freed Channel on YT and trucking business owner.
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I’m not gonna sugar-coat it. After I evaluated the economics of the independent trucking industry and all the monthly expenses, paired with the time away from home, it didn’t look like an appealing opportunity for me. It doesn’t look easy to turn a profit if you had to take out a big truck loan at a high-interest rate, and then if monthly expenses like fuel costs suddenly spike you could be in a tough financial situation.
Bottom line, I think a lot of folks would be happier collecting a steady paycheck as an employee driving truck instead of taking the risks of owning a business. But for someone determined to be their own boss Tyler shares some really good advice:
Have a Goal in Mind: It’s crucial to decide what you want to achieve with trucking before entering the industry. Consider if you want to use trucking as a stepping stone to invest in other ventures like real estate, save for college, or ultimately start your own trucking fleet.
Pit stop for Tyler in New Mexico.
Find Your Trucking Niche: In the video above, Tyler emphasizes the importance of selecting the appropriate trucking division to align with your long-term goals:
“You have to narrow down what division you want to work in… Do you want to do dry van, reefer, flatbed, oil field work, construction work, heavy haul, step deck, tanker, hazmat, doubles, triples? There’s so many different options in the trucking industry, and you have to figure out what it is you want to do.”
Tyler further advises, “Once you figure out what you want in the long run, you can figure out before you even get into trucking which starter company to start with, get your experience, and then move up from there.”
Get Out of Consumer Debt: Another key strategy shared by Tyler is to use income earned from trucking to completely get out of consumer debt (everything but your house). This is a foundational step to building financial freedom.
The trucking industry can be rewarding, but it requires dedication, careful planning, and strong financial management. Use this calculator to create various scenarios and understand the potential outcomes before making major business decisions.
Remember: The most successful trucking businesses often start with conservative estimates and grow sustainably over time. This tool is for educational purposes only to highlight some of the basics to consider.
Related tools:
$100K Earnings / Revenue Goal Calculator: Chart your route to $100,000 and beyond. Set revenue targets, estimate your operating expenses, and see exactly what it takes to reach six figures with your solo trucking business. Add multiple service offers, like regional hauls or specialized deliveries, to explore different ways to hit your income goals and drive your success forward.
About the Author: Brett Lindenberg
