08/01/2022
Do you know how much miles you have to run to reach a break-even point? If not - read this post. π
To cut a long story short, here is the formula:
π Mileage for Breakeven Point = Fixed Costs / RPM - Variable Costs.
In this formula:
1. Fixed Costs: everything you pay regardless how much miles you run. It can be lease/rent of your trailer, fixed payments for your truck, insurance, logbook etc. Don`t forget, that you use your mobile phone and eat during your work hours - add these expenditures to fixed costs as well.
2. Variable Costs - everything you pay when you drive. It can be fuel, service for your truck, dispatch fee, taxes (because it depends on how much you earn) etc. Add everything that you pay when you drive.
π Take the simple formula above, put in your figures and you will know how much miles per week or month you have to drive to be at least in zero. Everything above this figure will be a sign of a profitable business.
If you need a professional partner that can help to be always profitable, contact us:
β (346) 202-0555
Velox Enterprise Inc