Estimate the gross RPM that covers modeled cost
Break-even RPM is the gross revenue per mile needed so the amount left after percentage-based revenue fees equals the operating cost per mile entered. It is a coverage threshold, not a recommended selling price.
This distinction matters because a truck with $1.68 of operating cost and 7.5% in gross-revenue fees cannot break even at $1.68 gross. Some of that revenue is removed before it can cover the mile.
When this calculation is useful
- Setting a rate floor from a current cost profile.
- Checking the effect of dispatch, factoring or another fee charged as a percentage of gross revenue.
- Separating “covers cost” from a higher target that includes owner pay or profit.
Gross up cost for revenue fees
- Operating CPM
- Operating cost per all mile before the percentage fees entered here. A saved My Truck profile can supply the blended planning CPM.
- Revenue fees %
- The combined percentage of gross revenue removed by the modeled fees. Enter 7.5 for 7.5%, not 0.075.
Formula
Operating CPM ÷ (1 − combined revenue fee percentage ÷ 100)
The denominator is the share of gross revenue retained after the entered fees. Dividing cost by that retained share solves for the gross RPM that leaves exactly the entered cost CPM.
Combined fees must stay below 100%. If the CPM already includes dispatch or factoring, enter zero for that fee here or remove it from CPM to avoid counting it twice.
Example: covering $1.68 CPM after 7.5% fees
Assume $1.68 operating CPM and combined gross-revenue fees of 7.5%.
- The retained revenue share is 1 − 0.075 = 0.925.
- $1.68 ÷ 0.925 = $1.8162.
Result: Estimated break-even gross RPM is about $1.82.
Decision use: A rate exactly at this level leaves no modeled room for business profit, owner compensation above included costs, or error in the assumptions.
Treat break-even as a boundary, not a goal
Compare the threshold with true all-mile RPM when evaluating a load. A loaded RPM above break-even can still fail when substantial deadhead spreads the same revenue over more miles.
Build a target rate separately. Torz Freight uses target-rate and load-level tools to place a profit objective above this cost-coverage line.
Common mistakes
- Comparing break-even all-mile RPM with a loaded-only advertised RPM.
- Entering a decimal fee instead of a percentage or counting the same fee inside CPM and again here.
- Calling break-even “profit” when modeled profit is approximately zero at the threshold.
Limits and assumptions
- The result is only as current as the operating CPM and fee assumptions.
- It does not account for load-specific tolls, accessorial revenue, schedule risk or direct costs.
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.