How to Set Your Per-Mile Rate to Hit Your Target Profit

Guessing at rates is a recipe for losing money. Here's how to calculate exactly what you need to charge.

The Problem with Guessing

Too many owner operators set rates based on:

But you can't control the market - only your numbers. Know your numbers.

The Rate Formula

Here's the formula for setting your rate:

Target Rate = (Monthly Expenses + Target Profit) / Monthly Miles

Step-by-Step Calculation

Step 1: Calculate Monthly Expenses

Add up all your monthly costs:

Step 2: Set Your Target Profit

How much do you want to make? Let's say $5,000/month after expenses.

Step 3: Estimate Monthly Miles

Average OTR drivers run 10,000-12,000 miles/month. Let's use 11,000 miles.

Step 4: Calculate

Target Rate = ($8,200 + $5,000) / 11,000 miles = $1.20/mile

You need to average $1.20/mile profit over all miles.

But Wait - That's Not All

The $1.20/mile is your average. In reality:

The Real Number

If you have 15% deadhead:

Required loaded rate = $13,200 / 9,350 = $1.41/mile

You need to average $1.41/mile on loaded miles.

Use LoadBuck's Rate Calculator

LoadBuck helps you:

*Don't guess. Know what you need to make every mile count.*