Guide
True revenue per mile: from loaded rate to profit per all mile
Three loads can each pay $3.00 per loaded mile and still leave you with very different weeks. The rate con counts loaded miles only. The truck burned fuel on every mile. This guide walks the number from the quote to the profit.
In short
- Rate per loaded mile is what the broker quotes. It ignores empty miles.
- Revenue per all mile divides the same money by every mile driven.
- Profit per all mile subtracts costs first. Compare it with your cost per all mile.
- For several loads, add up revenue and miles, then divide. Do not average the per-load rates.
Looking for just the formula? See how to calculate revenue per all mile. This guide goes further: costs, fixed and variable, and a full week.
One number, four stages
Each stage takes something away. The quote looks best. The last bar is what is left of each mile after the truck is paid for.
The figure uses the invented week below. At $3.00 per loaded mile on the rate con, the week ends at $0.23 profit per all mile.
Get your own cost per mile first with the cost per mile calculator.
Work it out in five steps
Count every mile
Loaded miles plus empty miles, for the period. Use odometer or ELD miles for what you drove.
Total the revenue
Line haul plus accessorials you were actually paid. Unpaid detention is a cost, not revenue.
Total the costs
Variable: fuel, tolls, driver pay. Fixed: truck payment, insurance, permits, parking.
Divide totals by totals
Revenue over all miles. Costs over all miles. The difference is profit per all mile.
Look at each load
Rank loads by profit per all mile. The rate on the rate con will not give the same order.
rate per loaded mile = revenue / loaded miles revenue per all mile = revenue / (loaded + empty miles) cost per all mile = total costs / (loaded + empty miles) profit per all mile = revenue per all mile - cost per all mile
A week of three loads EXAMPLE VALUES
All numbers invented. Every load pays exactly $3.00 per loaded mile on its rate con.
| Load | Revenue | Loaded mi | Empty mi | All mi | Per loaded mi | Per all mi |
|---|---|---|---|---|---|---|
| A | $1,500 | 500 | 100 | 600 | $3.00 | $2.50 |
| B | $1,200 | 400 | 200 | 600 | $3.00 | $2.00 |
| C | $900 | 300 | 50 | 350 | $3.00 | $2.57 |
| Week | $3,600 | 1,200 | 350 | 1,550 | $3.00 | $2.32 |
Week per all mile: $3,600 / 1,550 = $2.32. The plain average of the three per-all-mile figures is about $2.36. It is too high because the short load C counts as much as the long loads.
Now costs. Invented variable costs for the week (fuel, tolls, driver pay): $2,550. Invented fixed costs for the week (truck payment, insurance, permits): $700. Total $3,250.
- Cost per all mile: $3,250 / 1,550 = $2.10.
- Profit for the week: $3,600 - $3,250 = $350. Per all mile: $350 / 1,550 = $0.23.
- Before fixed costs: ($3,600 - $2,550) / 1,550 = $0.68 per all mile.
- Load B alone, before fixed costs and with its invented $950 of variable costs: ($1,200 - $950) / 600 = $0.42 per all mile.
Same $3.00 on every rate con. Load B earns $2.00 per mile driven, which is under the week's $2.10 cost per all mile. Load C earns $2.57. Rates on the rate cons did not show that.
What to do with the result
- Set a floor. If your cost per all mile is $2.10 in the example, a load that earns less per mile driven loses money after fixed costs. Use the minimum rate tool to turn that into a quote.
- Rank lanes, not single loads. One strong load on a weak lane does not make the lane good. See lane costs.
- Watch the gap. The gap between rate per loaded mile and revenue per all mile is your empty-mile drag. A growing gap is the first warning. The deadhead miles guide covers pricing it.
- Review monthly. Costs move. Re-run the week or month figures when fuel or insurance changes.
Ask the driver for the miles
Keep it factual. Ask for what the odometer or ELD shows. A guess skews every figure after it.
Common mistakes
- Dividing by rate con miles. Fine for checking a quote. For cost, use the miles you drove.
- Leaving blanks. A blank empty-mile field looks like zero and hides the problem.
- Skipping fixed costs. A load can cover fuel and driver and still not cover the truck.
- Counting unpaid detention as revenue. Only count what was paid.
- One load as the whole picture. Use a month of loads.
Compare it with a real file: see which of your last 20 loads earn less per all mile than they quote.
Questions
What is a good revenue per mile?
There is no fixed number. It depends on your costs, equipment and lanes. We publish no benchmark. Compare with your own cost per all mile.
Should I include fixed costs?
Yes, for the full picture. Use variable costs only to judge one load against another. Use all costs to know whether the week made money.
Are empty miles after delivery part of the next load?
Pick one rule and keep it. Many carriers charge empty miles to the load that follows. Changing the rule month to month makes comparisons useless.
Do I count home time or shop trips?
They are miles driven, so they raise your cost per all mile. Some owners track them in a separate group. Decide, and record it the same way each time.
How is this different from load profit?
The load profit tool works on one load. This guide shows how to build the same figures across a period.
Related: true revenue per mile, cost per mile, load profit, minimum rate, deadhead, deadhead miles guide, lane costs, spot vs contract freight.
See what your last 20 loads show.
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