Load profitability calculator

How the calculation works

This calculator evaluates a load using total miles — loaded miles plus deadhead miles to pickup. The cost applies to every mile driven, not just the paying miles, because deadhead fuel, maintenance wear, and time are real costs whether the trailer is loaded or empty.

Effective rate per mile

The effective rate divides the gross load pay by total miles (loaded + deadhead). This is the number that matters for comparing loads, not the loaded-mile rate on the rate confirmation. A $2,000 load over 500 loaded miles looks like $4.00/mile on paper — but if it required 150 miles of deadhead to reach the pickup, the effective rate is $2,000 ÷ 650 = $3.08/mile. Your cost per mile applies to all 650 miles, so the deadhead changes the economics significantly.

Example: An owner-operator with a CPM of $1.70 is offered two loads. Load A: $1,900 for 600 loaded miles, 50 miles deadhead. Effective rate: $1,900 ÷ 650 = $2.92/mile. Net: $1.22/mile × 650 = $793. Load B: $2,100 for 550 loaded miles, 150 miles deadhead. Effective rate: $2,100 ÷ 700 = $3.00/mile. Net: $1.30/mile × 700 = $910. Load B pays more gross, has a better effective rate, and produces a higher load net — despite the higher deadhead — because the loaded-mile pay more than compensates.

Load net

Load net is gross pay minus total trip cost. A positive load net means the load earns more than it costs to run — that surplus is what accumulates into monthly net income. A negative load net means the load destroys margin: it costs more to complete than it pays, and the driver is effectively paying out of pocket for the privilege of running the miles.

Load net does not directly translate to income because the owner still needs to cover their personal draw, taxes (quarterly estimated payments typically run 25–30% of net income for self-employed operators), and equipment reserves for future replacement. A truck running $600 load nets across 20 loads per month generates $12,000 gross surplus before these downstream costs.

Go/no-go recommendation

The recommendation compares the effective rate to your cost per mile with a 10% buffer for a clear "go." The buffer exists because loads rarely execute exactly as planned: a 30-minute detention that turns into 2 hours, a fuel stop that adds 8 miles off-route, or a redelivery instruction at the dock all reduce effective rate. A load that is marginally above break-even before dispatch may become a loss when these real-world variances hit. The 10% buffer provides breathing room.

Loads between break-even and 10% above cost are flagged as marginal — they may be worth accepting if they position the truck for a better backhaul, maintain a customer relationship, or prevent sitting empty for days. But they should be decisions, not defaults.

What cost per mile to use

Use the CPM figure from your actual cost-per-mile calculation, which should include all fixed costs (truck payment, insurance, permits) and variable costs (fuel, tires, maintenance) divided by your monthly miles. If you have not calculated your CPM, use the cost per mile calculator first — every load evaluation depends on knowing this number. Using a rough estimate or a number "someone told you is typical" instead of your own actual costs is the most common reason operators accept unprofitable loads without realizing it.

Frequently asked questions

How do I calculate whether a load is profitable?

Divide gross pay by total miles (loaded + deadhead) to get the effective rate. Compare to your cost per mile. If effective rate exceeds CPM, the load generates profit. If it is below CPM, the load produces a loss regardless of what other trucks are taking it for.

Should deadhead miles be included?

Yes. Deadhead miles cost fuel and maintenance without generating revenue. A rate that looks solid on loaded miles alone can turn marginal when 100–200 miles of empty driving to pickup is included. Always calculate using total miles — that is what your costs apply to.

What profit margin should I target per load?

15–25% above cost per mile is a common target. The buffer matters because real-world loads often have variances — detention, longer routes, extra stops — that reduce effective margin from what the rate confirmation shows. A load that covers CPM by only 3–5% is one delay away from being a loss.

What if most loads in my market are below my CPM?

The options are to negotiate harder using CPM as your floor, reposition to a different lane or region, or reduce CPM through fuel network use, lower deadhead, and fixed cost review. Accepting sub-CPM loads to stay moving depletes cash and is not a sustainable volume strategy.