Cost per mile (CPM)

Cost per mile (CPM) is a metric that businesses use to calculate the cost of every mile traveled by a vehicle or aircraft. 

It is an important financial indicator, particularly in the transportation or travel industry, that helps assess the efficiency of business operations and costs associated with transporting goods or passengers over a specific distance. The costs typically include fuel, maintenance, insurance, wages for drivers or crew, and other overhead expenses.

CPM is calculated by dividing the total transportation costs by the number of miles traveled. For example, an airline spent $200,000 in a certain month covering a total of 50,000 miles. This means the CPM is $4.00 (200,000/50,000).

By understanding their CPM, companies can identify areas for cost reduction and determine whether certain routes are profitable or need to be adjusted.