Hotshot owner-operator education
How to Calculate Hotshot Tire Cost Per Mile
Tires are a predictable wear category with unpredictable replacement timing. A per-mile allowance helps spread the expected expense across the miles that generate revenue.
The tire cost formula
Tire cost per mile = total installed replacement cost ÷ expected service miles. Include the applicable truck and trailer tires in your estimate and use actual invoices where possible.
Worked tire budget example
Suppose replacing a set of tires costs $2,400 installed and the set lasts 40,000 miles. The planning allowance is $0.06 per mile. An 800-mile trip would allocate $48 toward that future replacement. These numbers are hypothetical.
Account for truck and trailer separately
Different axles and tire types can have different prices and service lives. Calculate each set independently and add the per-mile allowances. Do not assume all tires wear out simultaneously.
Consider real operating conditions
Weight, alignment, inflation, road conditions and driving habits influence wear. Track installation date, mileage, rotations, failures and replacement invoices to refine the estimate.
Avoid double counting
If tire costs already sit inside your maintenance CPM, remove them from that category before adding a separate tire CPM. Distinguish budgeting allowances from expenses actually paid.