Freight Cost-Per-Mile, Deadhead & Break-Even Rate
Glen took a $2,400 load from Dallas to Denver — 880 miles. Diesel is $4.10/gal. Is this load worth running?
- Load amount
- Miles
- Fuel price
- MPG (6.5 typical)
- Fixed cost per mile
- 1
Revenue per mile
$2,400 / 880 = $2.73 / mile gross.
- 2
Fuel cost per mile
$4.10 / 6.5 mpg = $0.63 / mile in diesel.
- 3
Add fixed costs
Truck payment + insurance + maintenance ≈ $0.70 / mile.
- 4
Net per mile
$2.73 − $0.63 − $0.70 = $1.40/mile profit. Above $1/mile = take it.
1,200-mi load pays $2,640 but requires 180 mi deadhead to the pickup. Truck does 6.5 mpg, diesel $4.10/gal, fixed cost $0.42/mi (driver, insurance, depreciation). Compute revenue/mi (loaded only vs all miles), fuel CPM, net margin, and break-even rate where margin → $0.
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1,200 mi load profitability
Given: Rev $2,640; 6.5 mpg @ $4.10/gal; fixed $0.42/mi
- 1
Revenue per mile
2640 ÷ 1200 = $2.20/mi
Diesel jumps to $5.00/gal
Given: Same lane, same truck
- 1
New fuel CPM
5.00 ÷ 6.5 = $0.77/mi