PRICE THE WORK
Break-Even Rate Calculator (with deadhead)
Your break-even rate per total mile is just your cost per mile — but brokers quote per loaded mile, and your deadhead has to be paid for somehow. This turns your cost into the minimum rate per loaded mile you can accept, then the rate you need to hit a target profit.
Use the cost-per-mile calculator to build your own costs, including your pay. The $2.336 default is ATRI’s 2025 industry operating-cost benchmark, published in July 2026; it is historical context, not your complete business budget. The 12% deadhead and 10% margin defaults are illustrative assumptions, not measured owner-operator averages. ATRI’s primary release.
Break-even per total mile vs. per loaded mile
You break even on a load when the rate per total mile equals your all-in cost per mile. An offer quoted per loaded mile excludes the deadhead you drive to the pickup, which earns nothing while still using fuel and adding wear. So the paying loaded miles have to carry the deadhead too. If 12% of your miles run empty, 88% of your miles are paid — which means your loaded-mile rate has to be your cost ÷ 0.88 to come out even.
The formula
- Break-even per total mile = your all-in cost per mile.
- Break-even per loaded mile = cost per mile ÷ (1 − deadhead share). This is your true floor.
- Target rate per loaded mile = break-even per loaded mile ÷ (1 − target profit margin).
Illustrative example: $2.336 per total mile with 12% of miles unpaid gives $2.336 ÷ 0.88 = $2.654545… per loaded mile to break even. A 10% profit margin requires $2.336 ÷ 0.88 ÷ 0.90 = $2.949494… per loaded mile. The displayed thresholds round up to $2.66 and $2.95 respectively. Calculations use unrounded inputs. Adding 10% to cost is a markup and produces a smaller profit margin.
Why this matters when you negotiate
Knowing your floor before you pick up the phone changes the conversation. For example, with the illustrative $2.336 cost and deadhead equal to 15% of total miles, a $2.40-per-loaded-mile offer generates $2.04 per total mile and falls below the modeled cost. Drop your deadhead or your cost per mile and the floor falls — which is exactly why cutting empty miles and shopping fuel move real money.
Frequently asked questions
What is my break-even rate per mile?
Per total mile, break-even equals your complete cost per mile. Per loaded mile, divide that cost by one minus the share of total miles that are unpaid.
Why does deadhead raise the break-even rate?
Paid miles must cover costs for all miles. In an illustrative example, $2.336 per total mile with 12% deadhead gives $2.336 ÷ 0.88 = $2.654545… per loaded mile. The displayed break-even threshold rounds up to $2.66.
How do I set a target rate with profit?
Divide the unrounded loaded-mile break-even by one minus your target profit margin. At $2.336 per total mile and 12% deadhead, a 10% margin requires $2.336 ÷ 0.88 ÷ 0.90 = $2.949494…; the displayed target rounds up to $2.95. Adding 10% instead calculates markup, not a 10% profit margin.
Methodology & sources
Historical reference: ATRI’s 2025 industry operating-cost benchmark is $2.336 per mile, published July 15, 2026. It is not a verified individual owner-operator cost or a complete budget for your business. ATRI’s primary release. Deadhead and target margin are user assumptions. Loaded-mile thresholds round up to cents; calculations use unrounded inputs. Checked October 23, 2026. Modeled profit is before income tax.