Direct answer
Apply all-mile cost to loaded plus deadhead miles, add trip costs once and divide by loaded miles for break-even loaded RPM.
| Figure | Source |
|---|---|
| Numbers shown on this page | Fictional worked example; not a market benchmark |
| Formula and definitions | Serman Tools method stated on this page |
| Your quote or operating result | Your verified business inputs |
Calculate break-even revenue per mile
Use the same unit basis throughout. Defaults are fictional and not a freight-rate recommendation.
Use all miles for cost allocation
Fuel, maintenance and tires move with both loaded and empty miles. Truck payment, trailer payment, insurance and other monthly fixed costs also have to be recovered across the operation's total miles. Allocating fixed cost only to loaded miles can hide how utilization and repositioning change the economics.
All-mile operating cost = fuel per mile + maintenance + tires + monthly fixed cost ÷ monthly all miles. Trip-specific costs are added once.
Total-mile RPM and loaded-mile RPM answer different questions
Revenue per total mile compares the load with a cost figure that includes every trip mile. Loaded-mile rate is useful for negotiating an offer, but it must recover the cost of deadhead too. The calculator reports both break-even values so a strong-looking loaded-mile rate is not evaluated in isolation.
If a 750-loaded-mile trip requires 150 deadhead miles, the truck travels 900 miles. Dividing revenue only by 750 exaggerates the rate available to cover all 900 miles.
Fictional worked example
At $3.80 per gallon and 7 MPG, fuel costs about $0.54 per mile. Adding $0.15 maintenance and $0.04 tires produces about $0.73 of variable cost. Monthly fixed costs of $5,590 spread across 10,000 miles add $0.56, bringing all-mile cost to about $1.29.
For 750 loaded miles, 150 deadhead miles and $95 of trip-specific costs, estimated trip cost is about $1,258. Break-even is roughly $1.40 per total mile and $1.68 per loaded mile. Neither figure includes profit, personal taxes or costs not entered.
Recalculate when utilization changes
Fixed cost per mile rises when monthly miles fall. Update the model after a material change in equipment payment, insurance, fuel economy, home time or deadhead share. Keep a separate target-margin or owner-pay goal above break-even; a break-even load is not a sustainable target by itself.
Frequently asked questions
Should break-even RPM include deadhead?
Yes. Use all trip miles for total cost, then divide that cost by loaded miles when comparing a loaded-mile offer.
Is break-even RPM a target rate?
No. It covers entered costs with zero planned profit before taxes and omitted costs.
Why does lower monthly mileage raise break-even RPM?
The same monthly fixed cost is spread across fewer miles, increasing fixed cost per mile.
NEXT STEP
Test the complete load.
The free hub adds load revenue, fees and deadhead checks. The workbook keeps monthly projections and maintenance-reserve tracking together.