Guide

Driver pay structures compared: per mile, percentage and hourly

The same three loads pay a driver three different amounts under three structures. The structure decides which loads feel good to run.

In short

  • Per mile pays for distance. Percentage pays for revenue. Hourly pays for time on duty.
  • Run each on your last 20 loads and see who gains and who loses on each type of load.
  • This guide is math only. Pay rules, classification and overtime vary. Check your contract and verify with a professional.
  • All rates in the example are invented, not market rates. Our driver pay by metro page has open data.

Hook. On the wait heavy load, hourly pays $352.00 and per mile pays $236.50. On the short high rate load, percentage pays $256.50 and hourly pays $198.00.

Three structures, three incentives

A pay structure is also a signal. Per mile makes a long empty drive a cost to the driver. Percentage ties pay to the rate you win. Hourly pays for a wait at the dock.

The figure shows total pay on the same three invented loads. The bars are close, which is the point. The totals are similar, but the load by load pattern is not.

Pay is one side. The other side is your cost per mile. Use the cost per mile tool and the load profit tool to see what is left.

Three horizontal bars of total driver pay under per mile, percentage and hourly structures.Per mile$902.00Percent$1,066.50Hourly$1,034.00Driver pay on the same 3 loads. Example data
Three horizontal bars of total driver pay under per mile, percentage and hourly structures.

Run the comparison in five steps

  1. Pick 20 loads

    Your last 20, with miles, revenue and on duty hours.

  2. Choose the structures

    The ones you pay or are considering.

  3. Compute each

    Per mile x miles, percent x revenue, hourly x hours.

  4. Compare by load type

    Short, long and wait heavy loads often rank differently.

  5. Check what is left

    Revenue minus pay, then your other costs.

What each structure rewards

Pay structure comparison
StructurePays forWatch for
Per mileMiles, loaded or all, per contractShort loads pay little. Waiting pays nothing.
PercentageA share of load revenuePay moves with the rate you negotiate.
HourlyOn duty hoursSlow days cost you. Time tracking matters.

Whichever structure you pick, write down how paid miles and on duty hours are counted. Disputes usually start with a definition, not a rate. Then check the structure against your cost per mile: a pay plan that looks fair on a long load can lose money on a short one.

If you are weighing a change, run the new structure on last quarter's loads before you announce it. Show the driver the same table you built. Numbers on the page end more arguments than promises do, and they show you early if the new plan pays too little on a lane you need covered.

Worked example EXAMPLE VALUES

Example data. Three invented loads. Invented rates: $0.55 per mile on all miles, 27% of revenue, $22 an hour on duty.

Driver pay by structure, example data
LoadMiles, revenue, hoursPer milePercentHourly
Short, high rate250 mi, $950, 9 h$137.50$256.50$198.00
Long haul960 mi, $2,000, 22 h$528.00$540.00$484.00
Wait heavy430 mi, $1,000, 16 h$236.50$270.00$352.00
Total$3,950$902.00$1,066.50$1,034.00

Total driver pay is $902.00 per mile, $1,066.50 percentage and $1,034.00 hourly on $3,950 of revenue. As a share of revenue that is 22.8%, 27.0% and 26.2%.

No structure wins on every load. Per mile is lowest on the short and wait heavy loads. Hourly is lowest on the short high rate load. The right one depends on your freight and on what you need drivers to do. Rules on pay vary, so verify yours with a professional.

Open the load profit tool Check your last 20 loads

Where it goes wrong

  • Judging on one load. Use a set of loads. One load can flatter any structure.
  • Forgetting the wait. Per mile pays zero for dock time. Hourly pays for it.
  • Leaving out the margin. Pay is not the whole cost. Compare with your full cost per mile.
  • Assuming rules. Overtime, minimums and classification are legal topics. Ask a professional.

The formulas

per mile pay = paid miles x rate per mile percentage pay = load revenue x percent hourly pay = on duty hours x hourly rate

Paid miles may be loaded or all, per your contract.

Your numbers decide

All rates are invented. This is arithmetic. It says nothing about what pay is required or lawful. Check your contract and verify with a professional.

We do not give legal, tax or financial advice. Your contracts come first.

Questions

Which structure is best?

None wins on every load. Run your own loads and see.

Should I use loaded or all miles?

Whichever your driver contract says. All miles pays for empty drives too.

Where can I see open pay data?

On our driver pay by metro page.

Does this cover taxes or overtime?

No. Ask a professional.

Related: true RPM, rate per mile vs per day, driver detention pay, driver pay by metro, deadhead miles, all guides.

See what your last 20 loads show.

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