Truck Payment
Truck payment refers to the monthly loan or lease payment on a commercial truck. For owner-operators, this is typically the second-largest fixed expense after fuel, ranging from $1,200–$4,000/month depending on truck value, down payment, and loan term.
In Depth
Commercial truck loans are available through banks, credit unions, and specialized lenders like commercial vehicle financing companies. Terms typically range from 48–84 months. Interest rates for new operators without business credit history run 8–15%; established operators with good credit may qualify for 5–8%.
A new Class 8 truck (Kenworth T680, Peterbilt 579, Freightliner Cascadia) costs $160,000–$200,000. With 10% down and a 60-month term at 10% APR, the monthly payment is approximately $3,100. Used trucks in the $60,000–$100,000 range have proportionally lower payments.
When calculating your cost per mile, ensure the truck payment is divided by actual monthly miles driven to get the fixed CPM contribution. Driving more miles each month reduces this fixed cost per mile.
Usage Example
Example: 'My truck payment is $2,800/month. At 10,000 miles/month that's $0.28/mile in fixed costs just for the note.'
Related Calculators
Related Terms
Lease-Purchase Agreement
A lease-purchase agreement is a contract where a driver leases a truck from a carrier with the option to purchase it at the end of the lease term. Weekly payments are made from the driver's earnings, and the balance can be applied toward ownership.
Cost Per Mile
Cost per mile (CPM) is the total operating cost divided by total miles driven in a given period. It includes both fixed costs (insurance, truck payment) and variable costs (fuel, maintenance) per mile.
Operating Ratio
Operating ratio is total operating expenses divided by gross revenue, expressed as a percentage. A ratio of 85% means $0.85 of every dollar earned goes to expenses, leaving a 15% profit margin.
Escrow Account
In trucking, an escrow account is a reserve fund held by a carrier on behalf of a leased owner-operator. It is funded by deductions from the driver's weekly settlements and is used to cover expenses like repairs, permits, or end-of-lease obligations.
Frequently Asked Questions
How much is a typical semi-truck payment?
New trucks: $2,500–$4,000/month. Used trucks ($60K–$100K): $1,200–$2,200/month. Terms are usually 48–84 months.
Can I get a truck loan with no CDL?
Most commercial lenders require an active CDL-A before approving a commercial truck loan.