Tool
Trucking break-even rate calculator
Find the minimum gross pay a specific load must pay to cover your operating costs — and the target rate that includes your profit goal. The inverse of the load profitability calculator.
Rate floor and target
How the break-even rate works
Break-even gross pay is the total amount a load must pay to cover every dollar it costs to run — fuel, truck payment, insurance, maintenance, and all other operating costs across the total miles driven (loaded plus deadhead). A load paying exactly the break-even amount leaves no profit; it just avoids a loss.
Why total miles matter, not just loaded miles
Deadhead miles to reach the pickup cost money — fuel, time, and equipment wear — even though they generate no revenue. If your CPM is $1.65 and you need to drive 60 deadhead miles to reach the pickup for a 480-mile run, your total trip cost is $1.65 × 540 = $891. The break-even gross pay is $891, not $1.65 × 480 = $792. Ignoring deadhead miles understates the break-even by 12% in this example, which is enough to turn a seemingly profitable load into a money-loser.
Break-even rate vs. target rate
The break-even rate covers costs but leaves nothing for unexpected expenses, tax obligations, or actual owner income. The target rate adds your profit goal on top of the break-even — this is the number you should be negotiating toward, not the floor. Using break-even as your counter rate during negotiations leaves no room for any of the things that reduce what you actually take home: a lower settlement from a broker dispute, a repair bill that month, or a tax payment due at quarter end.
Relationship to cost per mile
If you do not have a reliable CPM figure, calculate one first with the cost per mile calculator. CPM is the foundation of every load rate decision. A CPM that understates your actual costs produces a break-even that is too low — making losing loads look acceptable.
Frequently asked questions
- What is a break-even rate in trucking?
- The minimum gross pay needed to cover every dollar of operating cost for a specific trip — total miles (loaded + deadhead) × cost per mile. A load at exactly break-even covers costs but generates no profit. Any rate below break-even produces a net loss.
- How does deadhead change the break-even?
- Deadhead miles to pickup add cost without adding revenue. A 400-mile load with 80 miles of deadhead has a total trip cost of 480 miles × CPM. The break-even per loaded mile is higher than CPM precisely because those empty miles still cost money.
- What is the difference between break-even and target rate?
- Break-even covers costs only. Target rate adds a profit margin on top — this is what you should actually negotiate toward, not the floor. Using break-even as a starting counter-offer leaves no room for unexpected costs, tax payments, or actual owner income.
- How do I check if a broker's rate covers my costs?
- Calculate break-even for the load: (loaded miles + deadhead miles) × your CPM = minimum gross pay. Compare to what the broker is offering. If the offer is below break-even, the load loses money — regardless of what other carriers are accepting it for.