Numbers that make sense
Rate per mile: one number, two very different stories.
Loaded miles and all miles answer different questions. Here’s how to keep the comparison honest.
4 min read · Original educational content
Start with the same set of loads
A useful rate-per-mile figure divides carrier revenue by the miles of exactly those loads. Mixing one set of revenue with another set of mileage makes the result hard to read.
Loaded miles are one view
Take one example load paying $2,000 over 800 loaded miles: its loaded rate per mile is $2.50. Add 100 empty miles to reach pickup and the all-mile rate is about $2.22. Both are useful when their definitions are visible.
Use a weighted calculation
For several loads, divide their combined revenue by their combined miles. Averaging each load’s RPM gives a misleading answer when the loads are different lengths.
Unknown mileage is not zero
If a load is missing mileage, mark it incomplete and leave it out of the calculation until it is reviewed. Show how many loads were left out instead of treating missing miles as free travel.
RPM is not net profit
Fuel, maintenance, insurance, tolls, service fees and other costs still need to be counted separately. This example does not predict earnings or price any available load.
Examples are illustrations. They don't guarantee rates, earnings, load availability, legal compliance or accounting results.