Freight Rate Calculator
Calculate the minimum and target freight rate you need to charge per load to cover costs and hit your desired profit margin.
Results
Visualization
How It Works
Knowing your minimum and target freight rate is crucial for quoting loads and negotiating with brokers. Too many carriers accept loads below their cost because they do not know their true break-even number. This calculator shows you exactly what to charge to cover costs and earn your desired profit.
The Formula
Worked Example
At $1.50 cost per mile over 600 total miles, your break-even is $900. To achieve a 20% profit margin, the target rate is $900 / (1 - 0.20) = $1,125. That gives you $225 profit ($1.875 per mile).
Practical Tips
- Know your true cost per mile before quoting any rate. Include ALL expenses, not just fuel.
- Never accept a rate below your break-even unless it repositions you for a much higher-paying load.
- Use this calculator before calling brokers so you know your walk-away number.
- Factor in accessorial charges (detention, layover, TONU) when calculating your effective rate.
- Recalculate your cost per mile quarterly as fuel prices and insurance rates change.
Frequently Asked Questions
How do I calculate my total cost per mile?
Add up ALL monthly expenses (truck payment, insurance, fuel, maintenance, tires, permits, tolls, phone, ELD, etc.) and divide by total monthly miles driven. Most owner-operators fall between $1.10 and $1.80 per mile.
What profit margin should I target?
A 20-30% profit margin is a solid target for owner-operators. This accounts for unexpected repairs, slow periods, and provides a reasonable income. Company carriers typically operate on thinner 8-15% margins but have higher volume.
Should I quote rates per mile or per load?
Know your per-mile rate for comparison, but quote per load to brokers and shippers. Quoting per load gives you more negotiation flexibility and avoids anchoring to a low per-mile number.
How do fuel surcharges affect my rate?
Fuel surcharges are supposed to offset fuel price increases above a baseline (usually around $1.20/gallon). If you receive a fuel surcharge, you can reduce your fuel cost per mile in this calculator by that surcharge amount.
What is TONU and should I factor it in?
TONU (Truck Order Not Used) is a fee charged when a load cancels after you have already driven to the pickup. Standard TONU is $150-$350. While not part of regular rate calculations, having a TONU policy protects you from wasted deadhead.