Owner Operator Pay: How Much Does An Owner Operator Earn?
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- Опубликовано: 28 июн 2024
- A common question that we are asked is, "How much money does an owner operator make?"
That's a very smart question to ask, if you're thinking seriously about buying your own truck and trying your hand as a lease owner operator. It's wise to find out if the owner operator's salary meets your expectations.
We'll review a few pay statements, to show the earnings and deductions from an owner operator contracted to haul tankers.
Tanker work is one of the specialized niches in the trucking industry. Liquid hauling is one of the better paying kinds of trucking.
We review the gross earnings, deductions, and show the net earnings, as well as the owner operator pay per mile..... a useful figure in calculating whether or not the earnings come close to meeting your financial needs.
Any questions, please post a comment and we'll try to answer.
Owner Operator Business Series
• The Owner Operator
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Love your vids!
pay also depends on the time of the year. winter months almost grind to a screeching halt
Thanks again for the info
Great video .. Thank you !
Awesome ty nice little insight on what too look forward too if I go that route.
LOCORiderair Yes, it's good to know what's out there.
Well thanks for your response. ..I'll be following this series very closely cause I'm getting close myself to going own/op..there's no future for me in being a company driver of a mega fleet. . With my drive and work ethic I really feel I can do far better on my own. .so keep up the good work. ..
Moosehead ED If you're a worker bee, you'll do well in the trucking industry. Be careful you don't work yourself to death though. They'll push you hard if you'll take it. Agreed, working for a mega fleet? No way..... especially after you have a few years experience under your belt. If you're willing to work and learn the owner operator biz FIRST before jumping in, you'll do just fine and make a lot more $$. Have you watched the video on working for publicly traded trucking companies? If not, I'll post the url for you. Interesting to watch and just a short one.
Very good informative videos for people that wish to become an O/Op. Now when someone on the road starts asking me all this stuff I'm going to just tell them to watch your videos. :-)
Your videos will save me so much time! Thank you .
That with no truck payment
Yes, thanks..I've seen that video..I watch and really enjoy all your vids..with all those years of experience you have, you're a great resource to tap into to gain knowledge before I make the big jump into owner/op..and yes I'm definitely a "worker bee " type...I feel very constrained,controlled, limited by my mega fleet company and can't wait till I can get away from them..
Moosehead ED Honestly, I wouldn't recommend to just anyone nowadays to become an owner operator, unless they i) Had considerable work experience in the biz as a company driver ii) understood the financials etc. of an o/o and iii) has good work ethic. Learn as much as you can. Yes megafleets are good to get started, but definitely not a long term career move I would suggest. Glad you're getting some value from the videos.
Again, smart, informative information for the inspiring future owner op's.. A big shout out to lovely lady, please keep the wisdom coming.....
Abraham Jackson Hey Abraham, hope it helps. We are publishing a series of videos focusing on the owner operator and the his business.
***** Fantastic. Enjoy your work. Looking forward to it.
I’ve been debating making the move to owner operator. Trying to learn as much as I can before making the big decision or a cascade of bad decisions.Currently I haul gasoline/diesel locally out of Boston,ma easy work making about 80-90k yearly. I want to say thanks for taking the time to make all these videos I learned a lot I wouldn’t have learned from anyone I know thank you
You have mentioned fuel subsidies in a couple of videos now. I don’t quite understand how this works. Could you please explain. I apologize as I know that this video is older, however I just came across It.
Very informative & helpful video's thanks...my question Is getting payed a load percentage% better than mileage based pay?
Hey mate can you do a video showing your drivers cab and what all the gauges read and switches etc love your videos!
elmin2323 Will do.
Thumbs up. Very lucrative.
payments depends on your company what you get paid per mile,which kind of trailer you drive and which kind of load also plus then coming costs for you fuel,maintance,repair. Good drivers they get around 10K or even more per month minus taxes and so on. Plus you have a lot of more paperwork and responsibility.But you get also more back by your income taxes. So all in all what i s far know as not own operator is to much repairs,waiting time for loads and days off making you no money.when your truck stand you make no money or just a bit.
With all of this heard i realized that you can drive as a company driver pulling dryvan in USA and earn the same amount of money as Canadian O/O pulling tanker
I just found your vids......excellent information. Regarding O/O, you had stated that tankers tend to pay more. What is the difference between flatbeds, steps, refers and regular vans?
Thanks in advance for your response and valuable feedback. By the way, I live in California.
+Bruce Keller Tanker companies pay for all unloading time by the hour for the most part and also seem to pay more by the mile, in my experience. Dave
+Smart-Trucking.com Dave, thanks for the response. What about the other types of loads? I see on many vids that dry vans can utilize more loads, but it appears that refers demand more $$ especially running in the midwest out of CA.
Dave,
I have a very good question coming from a company driver that wants to know with the way the market is today, would it be a wise decision to buy a truck and start a business or should the individual stay company driver if they make good money?
Thank you for all you guys do! You’re extra effort is very appreciated here on RUclips!!
My advice is to stay a company driver and find the best company you can. Dave
Thanks Dave
What type of accounting software do you use?
Do you have your costs broken down into cost per mile and percent of gross $$ earned for a years work.Also your average gross per miles on the odometer for one year?
Hi, I would like to clarify that your net result per mile ( one dollar and change) reflects the fact that you own your truck outright. A new vehicle cost of finance would be coming out of that net figure per mile as a fixed cost per week. That is where stress really becomes a factor and the necessity of a cushion (in the bank) for when the truck is not earning. We used to say ,if you don't earn enough to take a few weeks off a year then your not earning enough.
rooshooter And another reason not to buy a high dollar truck. I know lots and lots of owner operators with truck payments ranging from $2500- $3300/month. I'm not one of them, never have been. Vehicle purchasing and spec'ing is very critical.
*****
don't you prefer new a supposed to used unless you know the history of the unit?
I would like to know what your calculated per mile cost is for maintenance, tires, brakes, scheduled service and all other costs that will be expected such as light replacement's, windshields everything mechanical, tire chains etc. and doe you calculate in for the cost of purchasing healthcare insurance
Paul Hartnell another good question. I run a 10yr old truck I've had since new, so I know what's been replaced and what still needs to be replaced. As you know, not all maintenance issues are predictable but I track mine by what I expect at certain mileages and what I spend in a month. Not an exacting science but neither are breakdowns. I like to keep my monthly maintenance costs at 1500.00 per month. Sometimes I'm over and sometimes I'm not, but if my monthly costs plus repairs that I have budgeted for start to be consistently above that, it's time to re-evalute. I expect, for example to replace a clutch after 500,000 miles, but if major repairs are in my opinion required too often or too soon, something's gotta change. And yes, for sure, the cost of maintaining health insurance is budgeted for.
Thank you for the info still wondering if how this calculates in per mile costs I know its not exact science that's why I ask for example tires are known to last approximately what a 100,000 miles so on so fourth service's must be performed on schedule per dot what is the per mile calculation for this they are hard costs that can't be avoided
what is the yearly take home after taxes
thanks for this video. .
have questions I'm looking to get my own tractor only . how much the company's pay per mile for dry van or reefer still need to rent trailer not sure what average per mile they pay ?
All depends who you work for and where they run. Dave
How much of the NET or $$ per mile do you need to set aside to replace the truck? Thank You
That's great insights , thank you. ..what's the average annual gross/ net #'s looking like...
I'm getting very close to going own/op myself, hopefully mid 2015 and trying to absorb as much info from successful ops such as yourself...
Thanks again for your series. .
Moosehead ED Gross earnings can be misleading. It's really what your costs are, and the number of miles you need to cover to make the bottom line attractive. I'll cover these things in the videos. Don't be fooled by operators saying they are making $225,00 or more. You can run your butt off, sure, but that's not the important part.... the miles need to be smart miles.
***** Indeed. Like said in the other video "not what you make, but what you keep."
I keep trying to justify buying my own tractor but it just doesnt make much sense to me. Im averaging a take home pay of $2600cad/biweekly as a company driver and to shoulder all the risk of owning my own rig for only around $2000 more biweekly doesnt make any sense. Couple big repair bills and youre basically making as much as a company driver if not less. There is about a $30,000 annual take home profit margin between o/o's and company driver's. If youre engine blows there goes a $25k repair bill and not to mention few weeks down time would add another $10k in lost revenue. My company truck broke down on the road earlier this year and I had to spend a night in a hotel which the company reimbursed me for and also paid me $23/hr for 12 hours for waiting around while it was getting fixed so I still made money that day even though the truck broke down, now compare same scenario as o/o it wouldve been a loss of around $3000 that day when you add up tow bill, repair bill, and lost load revenue.
My advice is to stay with the company driving job. No money in owning your own in Canada anymore.
Thanks for the info, how many miles per Imperial gallon is that truck averaging?
Thanks
arcticcat5001 Rough estimate around 6 miles/gallon in winter. Depends on so many factors.... weight, mountain driving, weather.
HI there, I am thinking of getting into trucking, long haul. can I get a clear answer from someone like yourself on the real wages?
you look it up on the internet and it varies so much, I don't know what to believe! you are now driving hourly I understand ?
so what was your net income being an owner operator?
and what was your net income driving hourly?
I know it varies a bit with different circumstances but on average would be great.
thank you!
I couldn’t help but notice that you didn’t mention the fact that you don’t have a truck payment. Nor did you say how much for maintenance, or those pesky repairs.
Awesome insight here! In your opinion woouldd you purchase a newer truck if you had the funds to do so as a first time buyer. I've been driving for 2 yrs now and looking to go O/O mid 2015. Im leaning towards purhasing a brand new truck with warranties rather than something used. Just want your opinion...
JeantsJourney New is good, however WHICH new truck and what the specs are, is vitally important. Watch out for the engines that are having trouble. I get mail from o/o's saying there truck is in the shop as much as it's on the road... and that is NOT a good thing. Manufacturer will turn their head on you, as it's not their engine... that's the general opinion lately. Some guys are having a heck of a time with the new trucks. I've always been in favour of a 'general well-rounded' spec... in the 5 years it will take you to pay for it, you may not be doing the same work, so versatility is so much more profitable. You don't want to be stuck with a company that suddenly has no work. There's a few articles on the website for spec'ing tips www.smart-trucking.com/big-rig-specs.html and www.smart-trucking.com/semi-truck-values.html. These will give you some insight. Payments on a new one can be pretty stiff, so do your math ahead of time, to be sure you've got something affordable. I've never been a fan of anything used, that's mechanical.... unless you know the full history and know the driver. However, I've had a few used trucks and they were decent but I knew the history and owner/drivers. Buying used is such a gamble. Be sure you really, really want to be an owner operator. Once you're in it, it's not that easy to get out, so be darned sure. Good money to be made but you must be diligent about so many things. Keep your health up, so you're able to drive and make the payments and put in the miles. Hope that helps.
and for 1.07 per mile as you mentioned it pays $642.....................how you paying for tires or any maintenance to the truck?
I saw your video so I figured I'm seek some advice I want to lease a tandem 26 ft straight truck and become owner operator I want to stay mostly local I'm in Nj area. My question let's say I get truck with dot number insurance where do I find work? Should I make flyers and go to warehouses in area or talk to a broker? Also what kinda truck would be best I would get a tractor but I have limited class a experience but plenty with straight trucks and dump trucks so I figured straight tandem would open up doors for me. I'm currently working for a company as a driver working 52 hours a week Makin about 52 k a year with good benefits etc.
+brs “Brsrafal” rafal Sorry, can't help, I have no experience with trying to put a straight truck to work. It does sound though, like you've got a good deal there already as a company driver. Ever think about approaching one of the customers you're already delivering to , to see if they might want to cut a private deal with you? Dave
$1:15 per mile take home., minus Bookkeeper wage and Uncle Sam 10 % tax total net $1:00 per mile.
1.16 net take home 5k..not bad it should be 10k every two weeks....what I explore
What province are you guys out of?
Hey guys
I have a question is it smarter to go get a CDL thru a rental program I.e renting a truck for the exam and getting it tht way
Or actually going to school, or company training contracts ?
Thank you guys
arron pina If you already know how to drive, sure get a rental and do the exam. Training schools are expensive and the company training contracts keep you there for a year. It's whatever you're prepared to do really..... shell out money for school, or stay with a super carrier and run team for a year. Perhaps get a rental and get your license and then go work for a big carrier to get your experience. Then you can leave them when you've had enough of them.
5823,26 CAD $ after expense and fuel for the full month or as a biweekly paycheck ?
thanks
also which province are you from? i guess Ontario ?
How about someone buying a day cab working for a company with all owner operator being home every night ...is that a good idea especially if the truck is already paid for ?
I know of a few guys that made good money doing exactly that. Make sure the carrier is a reputable one! Dave
What about today? Almost 2019
When I first came out of school I went with swift for a month the guy training me was a complete idiot and after 40 hours of driving we were considered a team and he was in the back sleeping as I was driving at 2 in the morning to the mountains of Tennessee I now have 2 years of experience and every time they ask me if I want to be a trainer I tell them hell no
I see that you have no truck payments due to it being older and payed for. Will they still hire an owner/ operator if his truck is very old? Suppose a driver likes his 20 year old Pete and maintains it very well, can he still find a company to lease on to or will he need to go totally independent ? Thanks, B&B
Charles Tait It depends on the company. You'll find the rules for truck age, much less stringent than a few years ago. Once upon a time, a company wouldn't think of taking on an owner operator with a truck more than 5 or 6 years old. Mine is 10 years old and equally or more reliable than many of the new trucks. (Dave)
Smart-Trucking.com My experience is that the older Pre emissions trucks are more reliable than the new garbage being sold.
How much do you usually put in your maintenance account every 2 weeks?
Loudpedal10 That varies of course. We take a look annually at what 'may' be due that year and budget accordingly.... then look again at the scenario in 6 months to see if there's any changes to make in the amount to set aside. Usually around $1000 or so per month extra. It isn't often we touch that money. We try to pay our repairs of the the biweekly earnings and seem to be able to for the most part. This truck has been an exceptional truck, but it has been driven exclusively by Dave and he really babies the truck when he drives it. It has really paid off. The truck also hasn't done much hard pulling and hills, which makes a big difference too. We ran a produce fleet to the west coast and the pulls through the mountains were pretty hard on trucks esp with drivers on them. Lots of variables.
what are you netting after taxes?
+jsunh98 Not enough lately. Dave
So from the $5800 more or less the operator needs to pay for repairs , maintenance , food , cell etc etc etc... Correct
Tony Stadele That is correct. That's a 2 week period.
and a truck payment cuz not many ppl have 150k or 120k cash to pay it off
What about Owner operator who does flatbed work
there is no expense for truck payments or maintenance listed
in another video she shows the truck as paid for and just under a grand in maintenance.It goes even more in depth then this one and I recommend watching it..............Just be warned she must have had a problem with the mic so it is pretty low volume.I had to turn the ac off for a min but I cant complain as it was very valuable info.
Hell in America taxes would RIP you alive for a single Male. I make around $2,100 a week as a company driver and the amount of taxes taken in out baffles me...
I apologize in advance for what might be a stupid question but I'm not a driver yet but I hope I will become one. If I had to become a driver, most people recommend a small regional/local company because they pay better, is it true ? And what does pay the most ? Some people said food, others said car hauling ..what's your opinion ? Thanks and have a nice day everybody :)
Not a stupid question at all. Now I am assuming you're speaking of becoming a company driver? I'll assume that.
You know I could write pages and pages to answer your question, but I'll spare you the agony. What it all boils down to, is the company, if you're looking for the best paying trucking job. The food industry or produce? We hauled produce for many years, when operating costs were far lower than today... then the money was good. Now with the new HOS of service, elogs and higher costs, I'm not so sure that would be the case. Special niches normally pay the best money: heavy haul, tanker/liquid hauling, waste disposal haz-mat etc. Local hauling could pay well, as you don't have the extra added costs of so many meals and expenses being away from home. Hope this helps a little.
Yes, it really helped, thank you very much. May I ask another question ? Do you think being a driver is still going to be a job that assures a decent pay in the next years ? I'm thinking of becoming a driver and make a career out of it but a lot of people say it was better back in the day and now is getting worse. I'd love to do this job. Have a nice day and thanks again for the help :)
I would love to be a truck driver because first, I love to drive; second, I'm a loner, I love being alone and I prefer much more visiting other states and places that I've never been before (let's say you're form Los Angeles, you won't see snow in Los Angeles but if you go to Minnesota you will see it) and it's better than being in an office full of douches. I was asking that question for the only reason that I would like to make as much as possible with the work I do, I mean, why get paid 30 cpm if you can get paid 50 cpm in another company ?
If you touch the fright you get paid way more and get to come home every night well most nights
Owing the truck and no payment seems to be the best option.
What trucking company is she talking about???
And All of a Sudden, a Major repair!!! You Deserve IT!!!!!!!!,, I Have Had My Class a, Back when I Got It!,,,Before they called them CDL,s !
how many years has the driver been working for the company? $1.16 is a hard jump past 10 cents a mile.
bxchecka Who the hell is driving for .10 per mile.
no doubt even bison a big carrier up here pays company guys 80 cents a mile
William Martin heck I'm even tryin to figure who is runnin big trucks for 1.16 mile smfh lol
Can you become a truck driver in canada if you have a criminal recored ?
Ahmed Dool Yes, but crossing the border into the U.S. may not be an option for you. Dave
That's great money. I need to get a nice truck.
One important thing I did not mention in the video. There was waiting time pay included in the total gross earnings.... first statement was approximately $800/waiting time pay and the second statement included about $350/waiting time pay. You can see how the extra money for waiting time, improves the net mileage rate, after the major operating expenses are calculated.
waiting time- detention pay? Is so, that's great, as a company driver I never got a cent in detention pay cause company I work for has contracts with shippers that they don't owe any detention pay for drivers.
Smart-Trucking.com
Hello, I just want to start my career has a truck driver, I started my training last week. How many years do you think I should drive for a company before I can be an owner operator.
Also, which load is better, local or long haul?? Is the industry is profitable???Your response is appreciated.
I like to be an owner operator but can I make any money...
Glad I sold my truck. What happened to the good old days? That truck shouldn't move for less than $3.00/mile plus fuel surcharge, load/unload and wait time. Plus your bonus and safety incentives.
is that based on a high operation cost?
So is this monthly ? Money
it means you driving from vancouver to calgary for $696.................wow..................
Is that in US dollars or Canadian?
Mitch Taylor Canadian
so the more money u want the more miles u gotta drive??
Yup! Dave
1.16 per mile for tanker job?
not bad, by october YTD he's at $135k
What company u work for
Small lumber company in my home town. Dave
Become an owner-operator and you to *can earn $28,000/year*!
You guys are getting ripped off and screwed.
RFI-Crypto Lab 40000
Have you taken taxes out of that 5800.
+William Martin no
biggest mistake I ever made was using a credit card for fuel dumb dumb dumb dumb lol
Can you elaborate more on why this is dumb? I have credit card rewards so I get money back from paying for gas using my credit card.
If you didn't have a truck payment you'd be okay. Of course everyone does
tanker driver has high probability to death in an accident vs other type of trailer. is your life worth that much? and this money is for someone with more 20 years experience driver like dave. Plus all the maintanance and repair of truck will come a big chunk of the net...
gross income means nothing. if your wife has a darn good job and your willing to spend your time off in or under your truck it MIGHT make enough to feed you. my problem is it took about 60 + years to figure that out. givin a free farm would help . good luck
HOPE!!! Your Fuel, has Come down, Like The, US!!!!!!!!!!!
At the end my conclusion is that nowdays owner ops are working for peanuts = for nothing.
1.09 pet mile in my opinion is miserable comparing to work that trucker does. In simple words buying a truck and becoming an op is like putting your balls in someone elses anvil ang giving him a permission to tighten them as much as he likes..
By writting this comment I did not mean on anyone in particular and any similaritie is accidental.
i make 3400ish lazy work 4600ish hard work..i do the lazy work
Ali Ali per month?
Being a owner opp aint worth it ur better of making 50 cents a mile as compsny driver
It's only worth it if you want to deal with the head aches.......For me it was and now I have 2 guys running for me making me about 60 cents a mile while they are making .50 themselves and happy ;) Each time I buy a new truck I add a driver to run my old one and I'm home more making more although the headaches are also more.
Man i got buddys of minee who are owner ops after everything they profit 70 cents a mile with no truck payment
so a truck driver owner operator can make 7000$$$???
+Terrell Cousar Yes, but with all the "extras" and a truck payment, which can be $2000-$3000 per month, that $7000 vanishes fast.
If you can get away with not having a truck payment, by all means do it. Just be sure to keep an emergency fund handy, because something always breaks.
I've driven 1 auto, it was clutch assist. It was nice for getting around in the city, but I much prefer a manual. I think technology has come a long way with auto's, but I imagine they're very expensive to repair. Manual's are proven to be reliable and take a beating, just my opinion.
My pleasure sir. Best of luck and be safe out there!
+David Sloan if you really want to make money stop worrying about all that Peterbilt bullshit and get you an economy truck
Thank you, very helpful! In your opinion, if Obama is successful in passing this immigration bill, do you think this could hurt the trucking industry in the US? Meaning, all these illegals can come out of the shadows and possibly decrease the trucker shortage?
TNG64 Yes it's certainly a possibility, however, the authorities will hopefully crack down harder on the driver programs where they throw a driver behind the wheel, after less than a week's training. When they can't speak the language and read the road signs, they become a HUGE hazzard! Another bandaid solution... won't last if it materializes.