Trucking startup costs typically range from $10,000 to $30,000+ upfront for permits, insurance, and initial operating expenses. This doesn't include your truck or trailer, which typically adds $45,000 to $200,000+, depending on whether you buy used or new.
Ongoing monthly costs average $6,000 to $15,000, before driver wages, depending on fuel, maintenance, insurance, and permits. This guide breaks down every expense so you can budget confidently and launch your freight business the right way.
Table of Contents
- How much does it cost to start a trucking company?
Complete trucking startup costs breakdown (2026)- Ongoing trucking costs you should expect each month
- What factors influence total trucking startup costs?
- 5 ways new carriers can reduce trucking startup costs
- Forecasting your first-year revenue and expenses
- FAQs about trucking startup costs
- Start your trucking company with OTR Solutions
Key takeaways:
- Upfront costs range widely - based on equipment choices, with new trucks costing $120,000 to $200,000+ while used trucks cost $45,000 to $100,000+, making your equipment decision the biggest factor in initial investment.
- Monthly operating expenses average $6,000 to $15,000 - covering fuel, maintenance, insurance, permits, and administrative costs that require consistent cashflow management.
- Insurance represents one of your largest annual expenses - with new carriers typically paying $14,000 to $22,000+ per year in 2025 due to limited operating history and higher perceived risk.
- Factoring provides immediate cashflow - helping new carriers bridge the gap between fuel costs and broker payments while protecting against non-paying customers through True Non-Recourse Factoring.
How much does it cost to start a trucking company?
Starting a trucking company requires significant upfront investment and ongoing monthly expenses. Your total startup costs depend primarily on whether you purchase or lease equipment, but permits, insurance, and operating capital all factor into your initial budget.
Typical startup costs for new carriers:
- Upfront startup costs: $10,000 to $30,000+
- New truck purchase: $120,000 to $200,000+
- Used truck purchase: $45,000 to $100,000+
- Truck lease: $1,600 to $2,500/month
- Required permits (DOT, MC, IRP): $300 to $3,000
- Insurance for new authorities: $14,000 to $22,000+/year
Complete trucking startup costs breakdown (2026)
When you're starting a trucking company, there are some upfront costs you just can't avoid. These early expenses form the foundation for your business’ finances in the future. Getting things in place correctly from the beginning saves you time, money, and headaches down the road.
Note: These are rough estimates. Your exact startup costs may vary depending on location, freight type, truck value, and business goals.
Truck purchase or lease costs
Your truck represents the single largest expense when starting a trucking company. Driver Resource Center reports that a brand-new semi-truck typically costs between $120,000 and $200,000+. Used semi-trucks, depending on age, mileage, and condition, typically range from $45,000 to $100,000. Leasing options start around $1,600 to $2,500 monthly.
New trucks offer reliability and warranty coverage, reducing maintenance surprises. Used trucks lower your upfront investment, but may need repairs sooner. Leasing minimizes initial capital needs but increases recurring expenses.
When to consider each option:
- Buy new if you want maximum reliability and minimal early repair costs
- Buy used if reducing upfront investment matters more than warranty protection
- Lease if you prefer predictable monthly payments and less initial cash required
On average, the cost of new dry van trailers range from $40,000 to $70,000 for 2025/2026 models. Refrigerated trailers have a cost range of approximately $85,000 to over $90,000, depending on the refrigeration unit and owner-operator specifications.
Required Permits, DOT Number, and Authority Fees
Your DOT number serves as your identifier for safety monitoring. The MC number authorizes interstate, for-hire operations. IRP registration allows vehicles to travel across multiple states.
The FMCSA charges $300 per authority filing for your MC number. Processing MC authority typically takes 21 to 25 days. Common delays happen when insurance isn't active or filings contain errors.
IRP (International Registration Plan) plates cost approximately $1,500 annually, varying based on which states you operate in. The IRS requires HVUT payment for vehicles with a taxable gross weight of 55,000 pounds or more, with the maximum fee of $550 applying to the heaviest category.
Essential permits checklist for new carriers:
- USDOT number
- MC number
- BOC-3 filing
- IRP registration
- IFTA account setup
- State-specific permits (oversize, intrastate, etc.)
If you're factoring with OTR Solutions, our team can help you understand the paperwork and timelines so you can activate your authority faster.
Commercial trucking insurance costs
Insurance must be active before your authority goes live, and first-year premiums tend to be the highest. New carriers often pay approximately $14,000 to $22,000+ per year for full insurance coverage, reflecting the higher risk associated with limited operating history.
Because pricing depends heavily on factors such as truck age, driving history, cargo type, and liability limits, actual premiums can fall outside this range. For carriers seeking competitive quotes and tailored coverage, Marquee Insurance Group is available to shop multiple markets and help secure a policy suited to their operation.
Ways to lower insurance premiums:
- Keep a clean driving record
- Choose a safe, modern truck
- Reduce radius if possible
- Use dash cams or safety technology
- Pay premiums annually to reduce monthly cost
Many carriers work with partners like Marquee Insurance Group to compare rates and find coverage that fits their operation.
Business formation and startup admin costs
Forming an LLC, obtaining your EIN, and handling business licensing costs cost between $150 and $500. Choosing the right business structure matters for liability protection and tax treatment.
Beyond legal formation, you'll need basic administrative tools. Bookkeeping software, dispatch systems, and ELD platforms cost between $200 and $1,000 initially.
Recommended tools for new carriers:
- Basic bookkeeping software (QuickBooks or trucking-specific platforms)
- Dispatching tools
- Document management apps
- Professional email and domain
- Simple one-page website to establish credibility
Ongoing trucking costs you should expect each month
Once your business is up and running, the expenses don't stop. Ongoing trucking costs are part of everyday operations. Managing them well is key to staying profitable and keeping your trucks moving.
Note: Costs fluctuate based on fleet size, lanes, and seasonality. Budgeting conservatively helps avoid cashflow gaps.
Fuel costs
Fuel represents your largest monthly operating expense, often consuming 20% to 40% of total costs. Monthly spending varies by miles driven, current fuel prices, and idle time.
The latest EIA Short-Term Energy Outlook projects national on-highway diesel prices in the mid-$3 per gallon range through 2025 and 2026, with normal seasonal and regional changes. Long-haul carriers see more volatility depending on region and season.
Route planning, limiting idle time, and proper tire inflation improve efficiency. The OTR Fuel Card saves carriers $0.50 to $2.25 per gallon, depending on location. Every gallon saved goes straight to your bottom line. For more strategies on reducing fuel expenses, check out our guide on how to find the cheapest diesel fuel.
Ways to reduce fuel costs:
- Use the OTR Fuel Card to find the lowest in-network prices
- Plan routes to reduce empty miles
- Reduce idling time
- Maintain proper tire pressure
Truck maintenance and repairs
Maintenance prevents breakdowns that cause downtime and lost revenue. Monthly costs range from $1,000 to $4,000, depending on truck age and mileage. The latest analysis of operational costs of trucking conducted by the American Transportation Research Institute found that the average repair and maintenance cost for motor carriers was around $0.20 per mile.
Unexpected repairs like turbo replacement, transmission work, or APU fixes can run thousands. Budgeting a maintenance reserve protects your cashflow when major repairs hit.
Maintenance to prioritize:
- Oil and filter changes
- Brake inspections
- Tire rotations and alignment
- Coolant, DEF, and fluid checks
Driver wages and labor costs
Driver pay is typically one of the top three monthly expenses for fleets. Costs vary by experience, freight type, lane commitment, and bonuses. A reasonable range runs from $4,000 to $7,000+ per driver. According to ZipRecruiter, the average OTR truck driver in the United States earns about $81,820 per year.
Retaining reliable drivers saves money because turnover is expensive. Payroll taxes, onboarding expenses, and training costs should also be factored into your budget.
Common driver payment structures:
- CPM (cents per mile)
- Percentage of load
- Salary or weekly minimum
Taxes, tolls, and permit fees
IFTA taxes require tracking miles and fuel across states each quarter. Tolls vary significantly by lane and region. East coast routes, Chicago, and Florida cost substantially more than other areas.
Inconsistent routes create unpredictable toll fees and permit needs. Software or ELDs help automate IFTA tracking to prevent fines and ensure accurate filings.
Common recurring compliance fees:
- Quarterly IFTA filings
- Highway Use Tax (HUT) depending on state
- Oversize/overweight permit fees
- Toll transponder fees
- State mileage permits (KYU, NM, NY HUT)
Back-office and administrative costs
Even small carriers need consistent administrative support covering internet, phone, email, and software. Monthly costs range from $200 to $1,000, depending on tools and staffing.
The OTR Mobile App helps manage factoring, fuel savings, and document uploads all in one place, reducing the need for multiple systems.
Common monthly administrative costs:
- ELD subscription
- Load board membership
- Accounting or TMS software
- Phone and internet
- Cloud storage and document tools
- Dispatching or fleet management apps
What factors influence total trucking startup costs?
Your total trucking startup costs vary widely depending on the decisions you make before hitting the road. Everything from the truck you choose to the freight you haul affects spending. Understanding these cost drivers helps you budget realistically and avoid surprises.
Your equipment choice (new vs. used vs. lease)
New trucks cost the most upfront but offer lower early-year maintenance expenses. Used trucks reduce startup costs but often bring unpredictable repair bills. Leasing lowers upfront investment but increases long-term costs.
The right choice depends on your cashflow situation, available credit, and long-term business goals.
Who each option works best for:
- Buy new if you want reliability and lower repair risk
- Buy used if upfront savings matter more than long-term maintenance
- Lease if you prefer predictable payments and lower initial cash requirements
The freight type you plan to haul
Reefer, flatbed, and specialized freight require more expensive trailers or equipment than standard dry van. Dry van is generally the cheapest option for new carriers starting out.
Hazardous materials, high-value loads, and perishables increase insurance premiums significantly. Some freight types require extra certifications or permits that add to startup costs.
Cost impact by freight type:
- Reefer trucks require insulated trailers plus refrigeration units
- Flatbeds need securement equipment (chains, tarps, straps)
- Hazmat loads require endorsements plus specialized insurance
- High-value freight leads to higher cargo coverage requirements
Your operating states or regions
Some states have higher registration fees, IRP rates, and insurance requirements than others. Running interstate versus intrastate changes permit and authority costs.
Fuel costs, tolls, and road taxes vary widely by region. Urban or high-traffic areas increase fuel burn and maintenance needs.
Regional factors that vary costs:
- State registration and IRP fees
- Toll-heavy regions (East Coast, Chicago, Florida)
- Fuel price differences (West Coast vs. Midwest)
- State-specific permits (KYU, NM, NY HUT)
Your driving record and insurance risk
A clean driving record can lower insurance costs significantly. Accidents, violations, gaps in experience, and equipment age all impact premiums.
Safety gear, modern trucks, and consistent routes can reduce insurance rates. Taking proactive steps to demonstrate safety commitment helps negotiate better rates.
Factors that affect insurance pricing:
- Clean MVR equals lower premiums
- Safe, reliable equipment reduces risk
- Dash cams plus telematics help negotiate lower rates
- Long-haul versus local radius affects pricing
Whether you start as an owner-operator or hire drivers
Starting as an owner-operator keeps costs lower since you aren't paying driver wages. Starting as a fleet increases costs quickly due to payroll plus additional equipment needs.
Fleets must budget for driver recruitment, payroll taxes, onboarding, and turnover expenses. Insurance rates may increase when adding multiple drivers to your policy.
Extra costs that come with hiring drivers:
- Driver wages and bonuses
- Payroll taxes plus workers' comp
- Additional insurance coverage
- Recruiting and onboarding expenses
- Additional trucks plus equipment
5 ways new carriers can reduce trucking startup costs
Running a successful freight business means watching both your income and your expenses. Once you've covered those early trucking startup costs, managing your day-to-day spending keeps your business strong over time. Facing common trucking industry challenges requires smart cost management strategies from day one.
1. Improve fuel efficiency early
Fuel will always be one of your biggest expenses, but routine maintenance like oil changes and tire checks helps trucks run efficiently. Small driving changes help too. Using cruise control, avoiding long idle times, and easing up on the gas pedal save fuel over the long haul.
2. Stick to a preventive maintenance schedule
Breakdowns cost money, time, and trust with your customers. Creating a regular maintenance schedule keeps your truck in good shape and catches little issues before they turn into major problems. Trucking industry challenges often hit hardest when preventive maintenance gets skipped, so staying ahead of repairs protects your bottom line.
3. Shop insurance rates annually
Insurance isn't a one-and-done deal. Rates change, and your needs might shift as your business grows. Check policies each year, compare quotes, and ask about discounts, especially if you've got a clean driving record or run a safe, well-maintained rig.
4. Use cost-saving tools and technology
Today's trucking technology does a lot of the heavy lifting for you. GPS and route optimization tools help you avoid traffic and find efficient paths. Even something as simple as using Fuel Finder in the OTR Mobile App to find the cheapest diesel fuel makes a big impact on your bottom line.
5. Track your expenses consistently
Staying on top of your finances doesn't have to be complicated. Make it a habit to check income and expenses regularly, track what's coming in and going out, and adjust your budget when needed. The financial challenges of owning and running a small trucking company are real, and it is crucial to plan for challenges before they impact your operations.
Partnering with one of the best freight factoring companies means getting non-recourse protection where you stay paid even if brokers don't pay.That kind of peace of mind makes a big difference when every dollar counts. When you choose True Non-Recourse Factoring with OTR Solutions, you get the support of the only program in the industry that means you won’t receive chargebacks, ever - even after 90 days of broker non-payment.
Forecasting your first-year revenue and expenses
Before you hit the road, understand how much money you can realistically earn and how earnings stack up against expenses. Forecasting your first-year revenue helps you set the right rates, avoid cashflow surprises, and determine profitability.
How to estimate load revenue
Your revenue potential depends on several key factors that change based on market conditions. The rate per mile varies by lane, season, and freight type. A new carrier might earn $1.50 to $2.50 per mile.
Deadhead refers to miles driven without freight, generating zero revenue while costing fuel and maintenance. Minimizing deadhead percentage keeps your revenue consistent.
Factors that affect revenue:
- Rate per mile (RPM)
- Mileage and deadhead
- Freight type
- Region or lane
- Market conditions
Understanding your break-even point
Your break-even point is the monthly revenue needed to cover all expenses without making a profit or loss. Calculate this by adding all costs, then divide by your average rate per mile.
Most new carriers need several months to reach consistent profitability. Your first year focuses on building broker relationships, improving efficiency, and reducing unexpected expenses.
Costs to include in break-even calculation:
- Fuel
- Truck payment or lease
- Insurance
- Maintenance
- Permits and tolls
- Admin and back-office costs
How cashflow works in trucking
Cashflow timing creates challenges because you pay for fuel and expenses immediately, while brokers take 30 to 90 days to pay invoices. This payment gap strains operations unless you plan ahead.
Freight factoring solves the cashflow gap by providing same-day or even instant funding on approved invoices. Instead of waiting 30 to 90 days for payment from brokers, you receive money within minutes or hours. Choosing one of the best factoring companies means reliable payment processing without the runaround.
Funding options for new trucking companies
New carriers have several options for securing startup capital. You might explore equipment financing through banks or lenders. Traditional small business loans provide operating capital but require strong credit.
Factoring provides immediate cashflow without requiring perfect credit. OTR Solutions offers True Non-Recourse Factoring that protects you even if brokers don't pay. Add this to the only Truly Instant Funding program in the industry, which means carriers receive payments within minutes to any bank account, 24/7/365.
For carriers who factor with OTR, fuel credit options are available, allowing you to fuel now and pay later through weekly billing or directly from factored invoices.
Ways to fund a trucking company:
- Equipment financing through banks or lenders
- Small business loans
- Factoring
- Truly Instant Funding
FAQs about trucking startup costs
How much does it cost to start a trucking company in 2026?
Total startup costs range from $10,000 to $30,000 for permits and operating expenses. Add $45,000 to $200,000+ for equipment, depending on buying used versus new trucks.
What is the cheapest way to start a trucking business?
Buy a used truck, start as an owner-operator, operate regionally, and handle your own dispatching initially to reduce startup costs to around $50,000 to $70,000 total, including equipment purchase.
Is it better to buy or lease a truck when starting out?
Buy if you have financing or cash reserves for ownership equity. Lease if you need to preserve operating capital - but remember that long-term costs will be higher with leasing.
What are the monthly expenses for a trucking company?
Monthly expenses range from $6,000 to $15,000, covering fuel, maintenance, insurance, permits, tolls, and administrative costs. Driver wages add $4,000 to $7,000+ per driver.
How long does it take to become profitable as a new carrier?
Most new carriers reach profitability within 6 to 12 months after starting operations, depending on efficiency, broker relationships, and expense management throughout the first year.
Start your trucking company with OTR Solutions: lower costs, faster cashflow, stronger operations
Starting a trucking company requires significant upfront investment and careful expense management. OTR Solutions helps new carriers bridge the gap between expenses and revenue through True Non-Recourse Factoring. When brokers take 30 to 90 days to pay, you get same-day funding on approved and processed invoices.
The OTR Fuel Card saves you $0.50 to $2.25 per gallon at 2,500+ in-network locations, while the OTR Mobile App gives complete visibility into invoice status and payment tracking. Ready to start your trucking company with a financial partner who understands your challenges?
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