Find the gross load amount that covers entered cost
Break-Even Load Rate Calculator estimates the gross load dollars required to cover mileage-based operating cost, entered direct costs and a percentage of gross revenue. It produces a load-level threshold rather than a per-mile target.
At the calculated amount, modeled profit is approximately zero. The result does not include a profit objective unless profit has incorrectly been placed inside one of the cost inputs, which should be avoided for clear decision-making.
When this calculation is useful
- Translating all-mile CPM into a minimum gross load amount.
- Including tolls or other load-specific direct costs in a coverage test.
- Checking how percentage-based revenue fees raise the gross dollars required.
Gross up total load cost for revenue fees
- Total miles
- All loaded and empty miles to which the operating CPM applies.
- Cost CPM
- Operating cost per mile before the percentage fee entered here.
- Direct costs
- Additional load-specific dollar costs not already contained in CPM.
- Revenue fees %
- Combined percentage of gross revenue removed by modeled revenue fees.
Formula
((Total miles × operating CPM) + direct costs) ÷ (1 − revenue fee percentage ÷ 100)
Mileage cost and direct costs are added first. Dividing by the retained revenue share solves for the gross offer that leaves exactly that combined cost after fees. Combined fees must stay below 100%.
Do not enter a toll or other expense in direct costs if it is already represented inside CPM.
Example: a 650-mile load with direct cost
Assume 650 total miles, $1.55 operating CPM, $75 direct costs and 6% revenue fees.
- 650 × $1.55 = $1,007.50 mileage cost.
- $1,007.50 + $75 = $1,082.50 combined cost.
- $1,082.50 ÷ 0.94 = about $1,151.60.
Result: Estimated break-even gross load rate is $1,151.60.
Decision use: A sustainable target should normally sit above this boundary. Use Load Profit to test an actual offer and Target RPM to add a deliberate profit objective.
Compare gross dollars on the same route boundary
The mileage estimate must include the movement required to earn the gross offer. Leaving out deadhead makes the threshold look artificially low.
Common mistakes
- Using loaded miles only when the truck must deadhead to pickup.
- Counting direct costs both in CPM and in the direct-cost field.
- Calling a break-even amount a profitable target.
Limits and assumptions
- No profit goal, time value, schedule risk, accessorial revenue or post-delivery positioning is automatically included.
Review the broader calculation and sourcing principles on the Torz Freight methodology page.
Related calculators and guides
Torz Freight connects My Truck assumptions to Load Desk, Load Compare, negotiation, Trip Desk actuals and Money Desk. A quick calculation is most useful when its assumptions are checked against completed work.