Break-Even Rate: The break-even rate is the minimum rate per mile a load must pay to cover all your costs for that trip, with no profit and no loss.
Why it matters to owner operators
It is your floor when negotiating. Anything above it is profit and anything below is a loss, however busy the truck looks.
Example
If your cost per mile is $1.60 and a load has 100 empty miles plus 500 loaded miles, you need more than $1.92 per loaded mile to break even.
Free tool: Try our Cost Per Mile Calculator to put this into numbers.
Related terms
Business & Finance: Questions about invoicing, fees or getting paid on time? Our dispatch team handles invoicing and broker follow-up for the carriers we work with. Talk to our dispatch team or browse the full trucking glossary.
Haul smarter with a dispatch team behind you
Nexloads finds loads, negotiates rates and handles paperwork for owner operators and small fleets. No forced dispatch and no long-term contracts.