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Rate per mile (RPM) is the primary metric freight dispatchers use to evaluate load profitability. But gross RPM — the number a broker posts — and net RPM — what actually reaches the carrier's bank account — are very different numbers. Understanding the gap between them is the foundation of profitable dispatch.
Gross RPM is simple: total load pay ÷ loaded miles. A load paying $1,900 for 900 miles = $2.11 gross RPM. That's what the broker offers.
Net RPM is what matters: gross RPM minus all per-mile costs. For a typical dry van operation:
Example cost structure: Fuel: $0.55/mi · Driver: $0.42/mi · Truck payment: $0.12/mi · Insurance: $0.10/mi · Maintenance/tires: $0.08/mi · Overhead: $0.05/mi · Total costs: $1.32/mi
At $2.11 gross RPM − $1.32 costs = $0.79 net RPM. Not $2.11.
The difference is why two loads with similar gross RPM can have dramatically different profitability — fuel efficiency, driver pay structure, and whether deadhead is included all change the net calculation significantly.
| Equipment | Target Net RPM | Notes |
|---|---|---|
| Dry Van | $1.10–$1.40 | Competitive market; efficiency-driven |
| Reefer | $1.35–$1.75 | Higher costs (reefer fuel); higher rates compensate |
| Flatbed (standard) | $1.40–$2.00 | Securement and tarping increase costs |
| Flatbed (heavy haul) | $3.00–$5.00+ | Permit costs and complexity priced in |
| Power Only | $1.00–$1.40 | Lower costs (no freight liability); lower rates |
| Hotshot | $1.20–$2.00 | Pickup truck fuel economy reduces margin vs semi |
| Box Truck | $0.80–$1.20 | Regional/last-mile; higher stop volume compensates |
Your floor rate is the minimum net RPM that covers all costs with zero profit. Any load below the floor is a money-loser. Here's how to calculate it:
Diesel price is the largest single variable in carrier economics. At $4.00/gallon and 6.5 MPG, fuel cost is $0.615/mile. At $3.50/gallon, it's $0.538/mile — a $0.077/mile difference. Across 10,000 miles per month, that's $770/month difference in fuel cost. Floor rates should be recalculated quarterly at minimum, and immediately when diesel prices move more than $0.50/gallon.
Gross RPM is quoted on loaded miles only. Deadhead miles cost fuel without revenue. A load at $2.00 gross RPM with 150 miles of deadhead is actually:
$2.00 × 800 miles = $1,600 gross ÷ (800 loaded + 150 deadhead) = $1.68 adjusted RPM. The 150 deadhead miles cost roughly $0.45/mi × 150 = $67.50 out of the $1,600 gross.
DispatchOS AI calculates net RPM from your actual cost profile — not the industry average — on every load board opportunity.
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