These numbers assume:

Book Miles for Year

126,000

Out of Route Miles, 8% additional

10,080

Average fuel price

$1.35

Average MPG

5.5

Driver Wage

.36 cpm

Truck Payment

$2000.

00 per month

 

Annual Expense Breakdown

 

 

 

Expense:

 

 

Amount:

%:

Fuel

24742 gallons

@ $1.35 =

$ 33,402.00

28%

Truck Payment

12 payments

@ $2000 =

$ 24,000.00

20%

Insurance

$   6,000.00

5%

Maintenance

$   5,000.00

4%

Accountant

$   1,500.00

1%

Tolls, Pallets, Misc

$   2,400.00

2%

Escrow

$   1,500.00

1%

Driver's Wage

$ 45,460.00

37%

 

Total:

100%

Do you notice that there is nothing left over?  (And we have not even

mentioned the basic road expenses such as food, snacks, etc)

 

What do you think happens when fuel prices rise above and beyond

what has been budgeted?

 

In this scenario, the average price for fuel for the year was $1.35.  If you've

noticed, that wouldn't have probably been high enough for the year 2000 and

2001 so far.

 

If the average price per gallon were instead:

$1.38

over the course of a year, the increase would be:

$741.00

$1.42

over the course of a year, the increase would be:

$1731.00

$1.45

over the course of a year, the increase would be:

$2473.00

$1.48

over the course of a year, the increase would be:

$3215.00

$1.52

over the course of a year, the increase would be:

$4205.00

 

Does this make it clearer why...

The "leftover" money is not yours to spend on vacation

and

why many Owner Operators have gone broke in the past few years...?