Dispatch AutopilotWhat is a good rate per mile for car haulers?
There is no single “good” number for every truck. A good rate per mile is one that covers your cost per mile with room to spare, counting the empty miles too. Here is how to work it out for your own company.
How to calculate rate per mile
Rate per mile is the money a load pays divided by the miles it takes:
If a broker takes a fee or you factor the invoice, use the money you actually keep. For a multi-car trip, add up the price of every load on the trailer and divide by the miles of the whole trip, not each load on its own.
Loaded rate vs all-in rate
Car haulers often quote the loaded rate: price ÷ miles with cars on the trailer. But the truck also drives empty to the first pickup and after the last delivery. The all-in rate divides the same money by every mile:
| Example | Loaded rate | All-in rate |
|---|---|---|
| $1,500 load, 750 loaded miles, 120 empty miles | $1,500 ÷ 750 = $2.00 | $1,500 ÷ 870 = $1.72 |
The all-in number is the one that pays the bills, because fuel, tires and the driver cost money on every mile. Try your own numbers in the rate per mile calculator.
Find your cost per mile
You can only judge a rate if you know what a mile costs you. Take one month (three is better) and add up:
- Fuel and DEF
- Driver pay, including your own if you drive
- Insurance: liability, cargo, physical damage
- Truck and trailer payments or lease
- Repairs, tires and maintenance
- Tolls, permits, plates, IFTA, ELD, load board and software
- Dispatcher or office pay
Divide the total by all the miles the truck drove that month. That is your cost per mile. Many costs are fixed (payments, insurance), so the more miles you run, the lower your cost per mile gets.
So what is a good rate per mile?
A good rate is your all-in cost per mile plus the profit you need. If your cost is $1.60 per mile and you want 20% margin, you need about $2.00 per all-in mile. Market rates change with the season, the lane, the type of vehicles and how many cars fit on your trailer, so compare loads against your own target, not a number someone posted in a forum.
How to raise your rate per mile
- Fill the trailer. Each extra car on the same route adds revenue with very few extra miles.
- Plan the stop order to cut backtracking. See multi-car trip planning.
- Book the backhaul before you leave so you are not driving home empty.
- Work directly with dealers and repeat brokers who pay better and faster.
- Track every load. Over a few months you will see which lanes and customers pay best.
Questions
Should I use loaded or all-in rate per mile?
Use both. Brokers usually talk in loaded miles, but your profit depends on the all-in rate, which includes empty miles.
How do I calculate rate per mile for a multi-car trip?
Add up the price of all loads on the trip and divide by the total miles of the trip, including empty miles to the first pickup.
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