Know Your Breakeven Costs

There’s much more to your breakeven and profitability calculations than simply adding up your equipment and insurance payments. When you truly sit down and think about all the costs associated with running and operating your business it really starts to stack up.

Understanding and calculating your break even rate as an owner is crucial to ensuring that you are running a profitable business. Here are the key components you need to consider when calculating your breakeven rate:

Fixed Costs:

• Equipment costs (monthly payments, depreciation, and maintenance)
• Insurance premiums (monthly or annual)

Variable Costs:

• Fuel costs (variable depending on the distance traveled and current fuel prices)
• Maintenance and repair costs (tires, oil changes, regular servicing)
• Tolls and taxes (variable based on routes and locations)
• Permits and licenses (annual or one-time costs)
• Other variable costs (unexpected repairs, supplies, etc.)

Operational Costs:

• Driver wages (if you're not driving the truck yourself)
• Administrative costs (office expenses, communication costs, etc.)

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For your benefit, we’ve put together a breakeven calculator that puts your costs into a RPM (rate per mile) format, easily allowing you to compare and evaluate your potential profitability.

As you work through these calculations it’s also important to understand that not necessarily every load is going to be profitable in and of itself but take a step back, look at the overall picture (paired loads, weekly, monthly, etc) and evaluate your strategy at a higher level than just one of the many loads you’ll haul.

In the world of business, where things can go up and down like a rollercoaster, it's not just about making ends meet. It's about breaking through and hitting that sweet spot of steady success. TrueNorth is here to deliver on getting you there.

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About TrueNorth

TrueNorth pioneers a new era for truckers, new carriers, and owner-operators. Born from a legacy of trucking roots, it transforms the industry's landscape with a cutting-edge operating system. By replacing outdated processes with a unified mobile app, TrueNorth empowers truckers with superpowers – a dispatcher, CRM, financial dashboard, and real-time market insights. Bridging the gap between traditional fleets and tech companies, TrueNorth champions truckers' profitability, offering tools, and support for streamlined operations. In a world where autonomy looms, TrueNorth remains the ally ensuring profits and efficiency for the heroes steering the wheels of commerce. Get started with TrueNorth today, and see how a trucker-first tech platform can revolutionize your operations.