Loaded miles
The miles for which the stated freight revenue applies. Confirm whether fuel surcharge or accessorials are included.
PRACTICAL TRUCKING BUSINESS GUIDES
The $3-a-Mile Load That Isn’t: Deadhead & Cash Costs
The advertised rate per loaded mile can look better than the rate across the miles you actually drive. Before a busy schedule becomes a cash-flow problem, include repositioning miles and the costs that keep the business running.
Start the short form →PRACTICAL USES
Break the problem into useful numbers
Empty miles
Repositioning and return miles still consume fuel, time and equipment capacity.
All-in cost
Include relevant operating and fixed costs allocated consistently. The result is only as reliable as your records.
BEFORE YOU SUBMIT
Estimate cash remaining after a new payment with our free calculator →
Put your next four weeks into the cash-shortfall planner →
Calculate fuel cost per mile and the cash needed before invoices pay →
Put these details on one page
- Freight revenue and separately identified reimbursements
- Loaded plus expected empty miles
- Your own consistent all-in cost-per-mile estimate
- Collection date and cash payments due before settlement
COMMON QUESTIONS
Does deadhead always make a load unprofitable?
No. Total revenue, total cost, positioning and the next load all matter. The example shows why the headline rate alone is incomplete.
Can funding improve a bad rate?
Funding changes cash timing and adds costs or obligations. It does not increase what the customer pays for the load.
Where do I start if I don’t know my cost per mile?
Organize actual costs and mileage for a consistent period. Use OOIDA’s cost-per-mile resources as a starting framework and seek accounting help where needed.
MAKE YOUR REQUEST CLEARER
A practical planning checklist
A shareable example: $3 becomes $2.50
Hypothetical load: $1,500 revenue for 500 loaded miles sounds like $3 per mile. Add 100 empty miles and the effective revenue is $1,500 ÷ 600 = $2.50 per total mile. At an assumed $2.20 all-in cost per total mile, modeled cost is $1,320 and the difference is $180. That difference is not a guaranteed net profit; omitted costs would reduce it.
Separate the rate test from the cash test
A load can have a positive modeled contribution but pay after fuel or payroll is due. Test both the economics and the dates. Financing costs and existing deductions belong in your analysis if they are not already included in your cost figure.
Keep the denominator consistent
Calculate operating cost over total miles if you compare it with revenue over total miles. Do not spread expenses over loaded miles in one case and total miles in another. Allocate fixed costs with a consistent method and review the assumptions when utilization changes.
Use the worksheet in the next dispatch decision
Record gross revenue, loaded miles, empty miles, all-in cost and expected collection date before judging the headline rate. OOIDA provides cost-per-mile planning resources. Treat a general benchmark as background, not your fleet’s actual cost or a universal minimum acceptable rate.
For background on organizing revenue, expenses, and cash flow, see the U.S. Small Business Administration’s business finance guidance.
Sources & further reading
Links are educational references, not endorsements of Loan Sweet Loan. Original examples above are hypothetical.
By Loan Sweet Loan · Updated
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