How to Calculate True Rate Per Mile (RPM) Including Deadhead
The rate per mile on a load board divides the pay by loaded miles only. The empty miles you drive to reach the pickup are not counted, so the posted number makes a load look better than it is.
The formula
True RPM = Total Pay / (Loaded Miles + Origin Deadhead + Relocation Miles)
Worked example
- Pay $2,400, 700 loaded miles: posted RPM = $3.43/mi
- Add 65 deadhead miles: $2,400 / 765 = $3.14/mi
That is $0.29/mi less than the posted figure. If your cost per mile is $1.85, the margin on every mile you drive is $1.29, not $1.58.
To earn the posted RPM across all 765 miles, you would need about $2,624 ($3.43 x 765). Use that number when you counter.
FreightHUD shows this calculation on DAT One and Truckstop load cards, using your truck location for the deadhead estimate. Deadhead figures are labeled as estimates, and you can enter a manual value.
Step by step
- Find the total pay. Use the all-in rate the broker pays for the load, including fuel surcharge if it is part of the offer.
- Count loaded miles. Take the pickup-to-delivery distance shown on the load board.
- Add origin deadhead. Measure the empty miles from where the truck is now to the pickup.
- Add relocation miles if needed. If the delivery area has little outbound freight, add the empty miles you expect to drive to the next load.
- Divide. True RPM = total pay / (loaded miles + origin deadhead + relocation miles). Compare the result with your cost per mile.