Skip to main content

Business

Understanding rate per mile and deadhead

By MINDGEAR LLCPublished 4 min read

Quick answer

Rate per mile (RPM) is the load’s pay divided by miles. The honest version divides by all miles, including deadhead: the empty miles driven to reach the pickup. A load that looks strong on loaded miles can be weak once deadhead is counted.

Long-exposure photo of traffic light trails on a highway leading toward a city skyline

What is deadhead?

Deadhead is driving with an empty trailer, usually from a delivery to the next pickup. You still pay for fuel, wear, and time on those miles, but most loads only pay for loaded miles.

How to calculate all-in rate per mile

  1. Step 1: Add the miles

    Loaded miles plus deadhead miles to the pickup.

  2. Step 2: Take the total pay

    Linehaul plus any confirmed accessorials.

  3. Step 3: Divide

    Total pay ÷ total miles = all-in rate per mile.

  4. Step 4: Compare

    Check the result against your cost per mile and target margin.

Worked example (illustrative numbers)

These figures are hypothetical and only show the calculation. They are not market rates.

Comparing two hypothetical loads
ItemLoad ALoad B
Pay$2,000$1,800
Loaded miles800750
Deadhead miles20030
Loaded-mile RPM$2.50$2.40
All-in RPM$2.00$2.31

Look at the next load too

Where a load delivers matters as much as what it pays. A delivery into an area with few outbound loads can mean long deadhead or waiting, so good dispatching weighs each load against the likely next one.

This guide is general information, not legal, tax, or insurance advice. Check current requirements with FMCSA and your own advisers.

Ready to talk through your operation?

Tell us about your truck, your lanes, and your goals. We will follow up to discuss how dispatch support could work for you.

Request a Consultation