Trucking Cost Formula:
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Definition: This calculator estimates the transportation cost based on the rate per mile and total distance traveled.
Purpose: It helps trucking companies, logistics managers, and shippers determine transportation costs for planning and budgeting.
The calculator uses the formula:
Where:
Explanation: The simple multiplication of rate by distance gives the total transportation charge.
Details: Proper cost estimation ensures fair pricing, accurate budgeting, and profitability analysis for transportation services.
Tips: Enter the rate per mile in dollars and the distance in miles. Both values must be > 0.
Q1: What's included in the rate per mile?
A: Typically includes fuel, driver wages, truck maintenance, and profit margin. Some companies may have separate fuel surcharges.
Q2: What's a typical rate per mile?
A: Rates vary but often range from $1.50 to $3.00 per mile depending on truck type, freight, and market conditions.
Q3: Should I use actual miles or route miles?
A: Most trucking companies use practical route miles which may be 5-10% longer than straight-line distances.
Q4: How do I account for empty return trips?
A: You may need to calculate round-trip costs separately if the return trip won't have paying freight.
Q5: Does this include additional fees?
A: No, this calculates base transportation cost only. Additional fees (loading, waiting, tolls) should be added separately.