First Load Profit Guide: What You Actually Keep

Your gross rate isn’t your profit. This seems obvious, but it’s the most common miscalculation new carriers make on their first loads.

Before you accept any load, know the number it produces after fuel, fees, and variable costs. Use this guide alongside the First Load Profit Calculator to run the math.

The Components of Load Profitability

Gross rate: What the rate confirmation says you’ll be paid.

Loaded miles: The miles from pickup to delivery.

Deadhead miles: The empty miles to get from your current location to the pickup. Deadhead burns fuel with zero revenue.

Total miles: Loaded + deadhead. This is your denominator for cost calculations.

Revenue per mile (gross): Gross rate ÷ loaded miles. This is a useful benchmark but ignores deadhead cost.

All-in rate per mile: Gross rate ÷ (loaded + deadhead miles). This is the more honest number.

Fuel Cost Calculation

Fuel is typically your largest variable cost on any given load.

Formula: Total miles × (Fuel price per gallon ÷ MPG) = Fuel cost

Example:

• 600 loaded miles + 100 deadhead = 700 total miles
• Diesel at $3.80/gallon
• Truck gets 6.5 MPG average
• 700 ÷ 6.5 = 107.7 gallons × $3.80 = $409 in fuel

Run this calculation with your specific equipment’s MPG. Engine age, load weight, terrain, and speed all affect actual fuel economy.

Variable Cost Items to Include

Beyond fuel, variable costs on most loads include:

Factoring fee (if applicable): Typically 2–3% of gross invoice. On a $2,000 load at 3%, that’s $60.

Dispatch fee (if applicable): If you use a dispatch service, they typically charge 5–10% of gross. On a $2,000 load at 7%, that’s $140. Know this number before you accept the load.

Tolls: Check your route. Some corridors have significant toll costs. Factor these in before committing.

Lumper fees: If your delivery requires unloading assistance (lumpers), the cost may or may not be reimbursed. Confirm on the rate confirmation.

Scale fees: If you need to stop at a weigh station pay-per-use scale, budget a few dollars per use.

Parking: Overnight truck parking at paid facilities adds up.

Fixed Costs Per Mile

Your fixed costs don’t change based on whether you’re running or sitting — but they accumulate per mile when you’re operating:

Truck payment: Monthly payment ÷ estimated monthly miles = cost per mile Insurance: Monthly premium ÷ estimated monthly miles = cost per mile Phone and subscriptions: Divide monthly cost by miles

Example (rough):

• Truck payment: $1,800/month ÷ 8,000 miles = $0.225/mile
• Insurance: $700/month ÷ 8,000 miles = $0.0875/mile
• Phone/subscriptions: $150/month ÷ 8,000 miles = $0.0188/mile
• Total fixed cost per mile: ~$0.33

Your fixed cost per mile changes with your actual mileage. Running more miles spreads fixed costs thinner; running fewer miles makes each mile more expensive.

A Load Profitability Example

Let’s run a full example:

The load:

• Gross rate: $2,200
• Loaded miles: 620
• Deadhead: 80 miles
• Total miles: 700

Revenue per mile (gross): $2,200 ÷ 620 = $3.55/loaded mile

Variable costs:

• Fuel: 700 miles ÷ 6.5 MPG = 107.7 gal × $3.80 = $409
• Factoring (3%): $66
• Tolls: $22
• Total variable: $497

Contribution (before fixed costs): $2,200 - $497 = $1,703

Fixed cost allocation:

• 700 miles × $0.33/mile = $231

Net after all costs: $1,703 - $231 = $1,472

Net per mile (all-in): $1,472 ÷ 700 = $2.10/mile

This is the number that matters. It’s what goes toward your maintenance reserve, working capital, and income.

What Changes This Number

Rate: Negotiating even $0.10/mile more on a 600-mile load is $60 additional gross. On thin margins, negotiation matters.

Deadhead: A 200-mile deadhead on a 600-mile load means you’re running 800 total miles for 600 miles of pay. That’s significant fuel cost with no revenue offset. Position yourself near freight.

Fuel price: You can’t control diesel prices, but you can control where you fuel. Fuel at cheaper stops when routing allows. Fuel cards sometimes offer per-gallon discounts.

MPG: A well-maintained engine running at efficient speeds burns less fuel. Speed management (staying under 65 mph) materially improves MPG.

Dispatch fee: If you’re paying 8% dispatch fees on every load, that’s 8 cents per dollar of gross revenue. Understand this cost before setting up a dispatch arrangement.

When to Walk Away

A load is not worth taking if:

• After fuel and variable costs, you’re not covering your fixed costs
• The deadhead makes the all-in rate negative
• The broker’s payment terms are 60+ days and you have no factoring
• The load requires lumpers that aren’t confirmed reimbursable and the margin is thin
• You’d need to run below your calculated floor rate to accept

Waiting for the right load is a business decision. Running a bad load burns equipment, burns fuel, and locks you out of better freight that comes available while you’re on the road.

Maintenance Reserve

Include a maintenance reserve in your cost calculation. Equipment breaks — especially equipment being run hard by new operators. A common approach is setting aside a fixed dollar amount per mile or per week regardless of revenue.

If your truck breaks down and you have no reserve, you’re parked without income while paying for repairs. Factor this into your floor rate.

Frequently Asked Questions

What is a good rate per mile for a new carrier?

Rate per mile varies by lane, freight type, time of year, and market conditions. Rather than targeting a specific number, calculate your cost per mile first — fuel, insurance, truck payment, and fixed costs — then ensure your rate covers those costs plus margin.

Should I take low-paying loads to build broker relationships?

Taking a few relationship-building loads at thin margins is a business decision. Taking chronically low loads erodes your equipment and burns fuel while you wait for a check that barely covers expenses. Know your floor rate before accepting anything.