What Does It Really Cost to Run a Hotshot Truck?
The difference between a profitable hotshot business and a money pit comes down to one number: your cost per mile. If you don’t know this number, you’re guessing — and guessing kills businesses.
Breaking Down Cost Per Mile
Here’s a realistic breakdown for a typical non-CDL hotshot operation running a diesel pickup and 40-foot flatbed:
Fuel — $0.45-0.65 per mile
This is your biggest variable cost. At 8 MPG towing and diesel at $3.60-5.00/gallon, you’re looking at roughly $0.45-0.65 per loaded mile. Empty miles (deadhead) cost the same but earn nothing — minimize them.
Insurance — $0.15-0.25 per mile
At $1,000-1,500/month and running 6,000-10,000 miles monthly, insurance works out to about $0.15-0.25 per mile. This drops as you build claims-free history.
Truck Payment — $0.10-0.20 per mile
A $600-1,200 monthly truck payment spread across your miles. If your truck is paid off, this goes to zero — a huge advantage.
Maintenance and Tires — $0.08-0.15 per mile
Oil changes, brakes, tires, bearings, unexpected repairs. Budget for it or it’ll budget for you. Trailer tires alone run $200-400 each.
Permits, Registrations, and Fees — $0.02-0.05 per mile
IFTA fuel tax, IRP registration, UCR, annual DOT updates. Small per-mile but adds up annually.
Dispatcher Fees — $0.00-0.50 per mile
If you use a dispatcher, they take 10-25% of your gross. On a $2.00/mile load, that’s $0.20-0.50 gone. Finding your own loads eliminates this entirely.
Total Cost Per Mile
Adding it all up:
- With dispatcher: $0.80-1.80 per mile
- Without dispatcher: $0.60-1.30 per mile
What Rate Per Mile Do You Need?
To be profitable, your rate needs to exceed your cost per mile by at least $0.50-1.00. Here’s the math:
- Cost per mile: $1.00 (average)
- Target rate: $2.00+ per mile
- Profit per mile: $1.00
- Weekly miles: 2,500
- Weekly profit: $2,500
- Monthly profit: $10,000
That’s the dream scenario. Reality varies — but knowing your numbers makes the difference.
How to Lower Your Cost Per Mile
- Pay off your truck — Eliminates $0.10-0.20/mile instantly
- Find your own loads — Cut the dispatcher and keep 100% of the rate
- Minimize deadhead miles — Plan return loads before you deliver
- Maintain your equipment — Preventive maintenance is cheaper than breakdowns
- Track fuel economy — Drive smarter, fuel up at cheaper stations
The Bottom Line
Every successful hotshot operator knows their cost per mile down to the penny. Calculate yours before you accept a single load. If a load doesn’t cover your costs plus profit margin, pass on it. There’s always another load — there’s not always another chance to stay in business.
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