Booking a load based on the gross rate on a broker’s load sheet is a rookie mistake. If you do not subtract empty deadhead miles, factoring cuts, and dispatch fees first, you are bidding blind and likely taking loads that net you less than minimum wage.
Before evaluating single trips, make sure you know your underlying operating costs using our Cost Per Mile Calculator. If you haven’t set a target rate yet, use our Rate Per Mile Calculator to establish your minimum profitable rate before touching a load board.
Pre-dispatch audit: The real cost of booking a load
When a broker offers you a load, they want you to focus on the big number at the top of the rate confirmation. But that number is a mirage. To run a successful truck, you need to conduct a quick pre-dispatch audit of the trip. See our guide on what is a good rate per mile in trucking to understand how to benchmark rates.
This calculator acts as a trip evaluator, taking the gross rate and subtracting all active variable expenses to show your exact net profit and profit margin before you sign the rate con. For comprehensive trip routing and driver salary optimization, utilize our main Trucking Profit Calculator.
The margin killers: Deadhead, factoring, and broker commissions
To protect your business, you must account for the three largest margin killers on every trip:
- Deadhead Miles: These are the unpaid miles you drive to pick up a load or return home. If a load pays $1,250 for 500 loaded miles, but you have to drive 150 deadhead miles to get to the shipper, your actual trip distance is 650 miles. Your true rate per mile drops from $2.50 to $1.92 ($1,250 / 650). If you ignore deadhead, you are donating fuel to the broker. Understand how empty miles shift your cost structure by reading how to calculate cost per mile.
- Fuel Costs: Fuel is the single largest variable cost per load. Use our Fuel Cost Per Mile Calculator to compute the exact fuel expense for any given trip mileage before committing to a rate. If you haul under contract, your fuel exposure may be partially offset by a Fuel Surcharge (FSC) — use our Fuel Surcharge Calculator to calculate what FSC to negotiate into the rate confirmation.
- Factoring Fees: If you use a factoring company to get paid within 24 hours instead of waiting 30 days, they will take a cut of your gross revenue—typically between 1.5% and 5%. For a $2,500 load, a 3% factoring fee is $75. This comes directly out of your net margin.
- Dispatch Fees: If you hire an independent dispatcher who takes a percentage of your loads (usually 5% to 8%), this fee must be subtracted alongside fuel and tolls.
- Tolls & Scales: Hauling loads in the Northeast or through major metro areas can easily eat up $50 to $150 in tolls. If you don’t negotiate a toll reimbursement, that expense comes straight out of your pocket.
For hotshot operators evaluating smaller load offers on a dually pickup, check the trip economics against our Hotshot Profit Calculator, which includes accessorial fee modeling and pickup truck MPG curves.
Triangulating your net payout: Mathematical formulas
Our dispatch calculator models factoring deductions and accessory additions:
$$\text{Net Revenue} = \text{Gross Rate} + \text{Tarp Fee} + \text{Detention} - \text{Factoring Fee} - \text{Broker Commission}$$
The metric brokers don’t want you to calculate: Effective hourly rate
Rate per mile is a useful metric, but it can hide a critical problem: a load that looks great per mile can be terrible per hour.
If a load pays $0.40/mile net profit over 600 miles, that’s $240 net. But if that run took 16 hours (10 hours driving + 4 hours loading/unloading + 2 hours detention), your effective hourly rate is $15/hr — less than a convenience store clerk.
The formula:
$$\text{Effective Hourly Rate} = \frac{\text{Net Trip Profit}}{\text{Total Trip Hours}}$$
How to estimate total trip hours:
- Driving time: Miles ÷ Average speed (typically 50–55 MPH overall including stops)
- Loading time: 1–2 hours at shipper (standard)
- Unloading time: 1–2 hours at receiver (standard)
- Detention: Any waiting beyond the free 2-hour window
| Total Trip Hours Example | 600 mi run @ $0.40 PPM = $240 net |
|---|---|
| 12 hours (efficient) | $20/hr effective rate |
| 16 hours (w/ 2hr detention) | $15/hr effective rate |
| 20 hours (w/ 6hr detention) | $12/hr effective rate |
[!TIP] Target $25–$35/hr effective rate for a sustainable owner-operator income. If a load falls below $20/hr after detention, either charge for detention pay ($50–$75/hr) or walk. Brokers who consistently tie up your hours without paying detention are costing you more than the load is worth.
Formulas and compliance references are sourced from FMCSA and DAT Freight & Analytics reports.
[!WARNING] Planning Disclaimer: This tool is designed for operational modeling. Use for planning, not accounting. Consult a licensed CPA for tax calculations and business audits.
