Truck Break-Even Rate Calculator
Calculate the minimum revenue and rate per loaded mile needed to cover monthly trucking costs, deadhead, dispatch, and factoring fees.
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Truck break-even rate calculator
Calculate the minimum monthly revenue and loaded-mile rate needed to cover operating costs and revenue-based fees.
Monthly mileage and operating-cost assumptions
Break-even and target-profit results
Why revenue-based fees change break-even
Fuel, fixed expenses, mileage reserves, driver compensation, and other variable expenses create the base operating cost. Dispatch and factoring fees are different because they increase as revenue increases.
Simply adding a fee percentage to base cost understates the revenue required. The calculator divides base cost by one minus the combined fee rate so the fees charged on break-even revenue are covered by that same revenue.
Break-even loaded rate spreads every cost across revenue-producing miles. Deadhead lowers utilization, so the loaded miles must recover costs created by both loaded and empty miles.
This calculator is a planning estimate, not a freight quote, contract interpretation, financial recommendation, or guarantee of profit.
Break-even formulas and worked example
Base cost: fixed expenses + fuel + mileage-based expenses + other monthly variable expenses.
Break-even revenue: base cost ÷ (1 − combined dispatch and factoring fee rate).
Break-even loaded rate: break-even revenue ÷ loaded miles. Target revenue: (base cost + target profit) ÷ (1 − fee rate).
Example: 10,000 total miles, 8,000 loaded miles, $5,700 fixed expenses, 6.5 MPG, $3.75 diesel, $0.23 per mile in maintenance and tire reserves, and $800 in other variable expenses produce $14,569.23 in base cost. With 7% combined dispatch and factoring fees, break-even revenue is $15,665.84, or about $1.96 per loaded mile. A $4,000 target profit requires about $19,966.91 in revenue, or $2.50 per loaded mile.
Common break-even mistakes
- Ignoring deadhead: empty miles still create fuel, maintenance, tire, labor, and equipment costs.
- Applying fees only to base cost: dispatch and factoring percentages are charged on revenue, so the denominator adjustment matters.
- Leaving out reserves: a rate can appear profitable until tires, repairs, downtime, or major components require cash.
- Confusing break-even with a target: break-even covers estimated costs but provides no profit cushion for the business or owner.
- Using optimistic miles: fewer loaded miles raise the rate needed to cover the same monthly costs.
Truck break-even rate FAQ
What is a trucking break-even rate?
It is the minimum estimated revenue per loaded mile needed to cover the operating costs created by all monthly miles, including deadhead.
Why is the loaded-mile rate higher than the total-mile rate?
Only loaded miles produce the assumed freight revenue, so they must recover costs associated with both loaded and unpaid miles.
How are dispatch and factoring fees handled?
The calculator solves for revenue after accounting for fees charged as a percentage of revenue. Combined percentages of 100% or more are rejected as mathematically invalid.
Should owner compensation be included?
Include per-mile driver compensation when it is an operating expense or income target separate from the optional business-profit target.
Is the break-even rate the rate I should quote?
Not necessarily. A practical quote may also need profit, risk, market conditions, time, detention, special handling, return freight, and contract terms.
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