To calculate rate per mile, divide the total pay for a load by the number of miles the truck drives for it. A load that pays $2,000 for 1,000 miles works out to $2.00 per mile (example only), and dispatchers use that number to compare loads and check them against the carrier’s costs.
The math is simple. The useful part is knowing which pay and which miles to count, because that is where most new dispatchers get a misleading number. This guide walks through the formula, the common mistakes and a few worked examples.
Key takeaways
- Rate per mile = total pay for the load divided by total miles driven for it.
- Always work out two numbers: rate per loaded mile and rate per total mile, including deadhead.
- Use the carrier’s own mileage, not only the mileage the broker quotes.
- A load only makes sense if its rate per total mile is above the carrier’s cost per mile.
- All numbers in this article are round examples only, not typical market rates.
What is the rate per mile formula?
The formula is: rate per mile = total pay ÷ total miles. If a broker offers $1,500 for a 600-mile load, the rate per mile is $1,500 ÷ 600 = $2.50 (example only).
Before you divide, decide what goes into each side.
- Total pay: use the line haul plus any fuel surcharge, which together make the all-in rate. Leave out detention, lumper reimbursements and other extras that may or may not happen. Count those only once they are confirmed and paid.
- Total miles: the loaded miles from shipper to receiver, plus the empty miles the truck drives to reach the shipper. Those empty miles are called deadhead.
Brokers usually talk in all-in numbers on the phone. If a rate confirmation lists the fuel surcharge as a separate line, add it to the line haul before you do the math. Our guide on how to read a rate confirmation shows where those lines appear.
Should you count deadhead miles in rate per mile?
Yes. The broker pays for loaded miles, but the truck burns fuel and the driver uses hours on every mile, loaded or empty. If you ignore deadhead, a load can look better than it is.
That is why experienced dispatchers work out both numbers:
- Rate per loaded mile = total pay ÷ loaded miles. This is the number brokers and load boards usually show.
- Rate per total mile = total pay ÷ (loaded miles + deadhead miles). This is the number that tells you what the truck really earns for the trip.
The second number is the one to compare with the carrier’s costs. When two loads have similar loaded rates, the one with less deadhead is often the better choice.
A worked example: comparing two loads
The numbers below are an example only, not typical rates. Real rates change with the lane, the season, the equipment and the market.
Your carrier’s dry van is empty in a city and you have two load offers. You check the miles in your own routing tool before you do the math.
| Item | Load A | Load B |
|---|---|---|
| All-in pay (example only) | $1,500 | $2,400 |
| Deadhead to pickup | 100 miles | 200 miles |
| Loaded miles | 500 miles | 1,000 miles |
| Total miles | 600 miles | 1,200 miles |
| Rate per loaded mile | $3.00 | $2.40 |
| Rate per total mile | $2.50 | $2.00 |
Load A pays more per mile. Load B pays more in total but keeps the truck busy for longer. Which one is better depends on things the formula does not show: where each load delivers, whether there is freight to reload from there, and how many hours the driver has left. The rate per mile tells you where to start the conversation, not the final answer.
You can run these numbers in seconds with the rate per mile calculator on our free tools page. It also has a deadhead calculator for the empty miles.
How do you know if a rate per mile is good enough?
Compare it with the carrier’s cost per mile. A rate is only worth taking if it covers what it costs the carrier to run the truck, with something left over.
Cost per mile is the carrier’s total running costs for a period divided by the miles driven in that period. It includes fuel, the truck and trailer payment, insurance, maintenance, tires, permits, the driver’s pay and other overhead. Every carrier’s number is different, so ask the carrier for theirs. Do not guess it for them.
Example only: if a carrier tells you its cost is $1.50 per mile, then Load A above, at $2.50 per total mile, leaves $1.00 per mile over cost. Load B, at $2.00 per total mile, leaves $0.50 per mile. Both cover the example cost. A load at $1.40 per total mile would not.
This is general information, not financial or tax advice. A carrier’s accountant can help it work out a real cost per mile.
What mistakes do new dispatchers make with rate per mile?
- Trusting the posted miles. The mileage on a load posting may be shorter than the route the truck can actually take. Check truck-legal miles yourself.
- Forgetting deadhead. A high loaded rate with a long drive to the shipper can be worse than a lower rate close by.
- Counting extras early. Detention and layover pay only count once they are earned and approved.
- Ignoring time. A short load that takes all day to load and unload can tie up the truck. Some dispatchers also look at pay per day for that reason.
- Looking at one load at a time. Where the truck ends up matters. A good load into an area with little outbound freight can lead to a long empty drive next.
Our article on dispatching in a bad market covers how to think about rates when freight is slow.
How do dispatchers use rate per mile when talking to brokers?
Rate per mile gives you a clear number to work from. Before you call, know the carrier’s minimum rate per total mile for that trip. On the call, you can turn that into a total: if the trip is 1,000 total miles and the carrier needs at least $2.00 per mile for it, the floor is $2,000 (example only).
Brokers usually agree on a total, not a per-mile number, so it helps to do the conversion in your head before you dial. You can hear how these calls usually go in our sample conversation between a dispatcher and a broker.
Frequently Asked Questions
Is rate per mile the same as cost per mile?
No. Rate per mile is what a load pays for each mile. Cost per mile is what it costs the carrier to run the truck for each mile. You compare the two to see whether a load makes sense.
Does rate per mile include the fuel surcharge?
It usually should. Add the fuel surcharge to the line haul to get the all-in pay, then divide by the miles. If you leave fuel out, write that down so you compare loads the same way.
Why does the broker’s mileage differ from mine?
Brokers and load boards may use different routing software or shortest-route miles. Use truck-legal practical miles for your own math, and raise any big difference with the broker before you agree on a rate.
Should I take a load with a low rate per mile?
Sometimes a lower-paying load is worth it if it moves the truck toward a better area or gets the driver home on time. That is the carrier’s decision, so explain the numbers and let them choose.
Learn to price loads with confidence
The Dispatcher 101 course walks through finding and pricing freight in its Finding Freight and Booking Your First Load sections, so you can judge a load offer before you call the broker. Students on both plans can ask Joe Piazza about a real load offer through 1-on-1 mentorship, and the Gold plan adds the templates, 12 months of load board access and a 14-day money-back guarantee.
