📊 Understanding Rate Per Mile (RPM) in Trucking

In the dynamic realm of freight dispatching, Rate Per Mile (RPM) is often considered the gold standard for evaluating load profitability. While this simple calculation offers a quick glance at revenue per mile, it fails to tell the full story.

In this article, we’ll break down why relying solely on RPM can actually hurt your bottom line—and show you how to take a smarter, more profitable approach to load planning and dispatching.

Rate Per Mile is calculated by dividing the load revenue by miles traveled. For example, a $2,000 load over 1,000 miles gives an RPM of $2.00. Sounds good, right? But here’s the problem — it doesn’t account for costs.

🚫 Hidden Costs That RPM Ignores

• Deadhead Miles: Empty miles mean expenses without income.
• Fuel Costs: The #1 variable cost in trucking, and RPM doesn’t consider it.
• Tolls & Fees: These directly reduce your net—not shown in RPM.
• Maintenance & Repairs: Truck wear-and-tear doesn’t show up in this metric.
• Driver Downtime: Delays or waiting periods affect profit but aren’t reflected in RPM.

📉 Real-World Scenarios: RPM Can Mislead

• Scenario 1: A high RPM load looks great—but eats profits due to high fuel or long deadhead.
• Scenario 2: A lower RPM load ends up more profitable thanks to better routing and a return load.

💰 The Metric That Matters: Net Profit

Instead of focusing on just RPM, dispatchers should prioritize net profit. Net profit factors in your fuel, maintenance, tolls, and downtime—offering a true snapshot of business health.

🧭 Dispatch Smarter, Not Harder

At Freight Girlz, we believe in dispatching with precision. That means looking beyond RPM to strategic load planning, efficiency, and long-term partnerships. Here’s how:

• Use Load Boards Wisely: Don’t just chase high RPM—balance rates with cost-efficiency.
• Optimize Routes: Cut down on deadhead and fuel waste.
• Track Your Costs: Know your numbers—every mile, every gallon, every invoice.
• Build Broker & Shipper Relationships: Reliable partners = steady revenue and less downtime.

📌 Final Thought

RPM is a helpful metric—but it’s not the whole story. If you’re serious about running a profitable and sustainable freight operation, look beyond RPM. Understand the full financial picture, optimize your dispatching strategy, and stay focused on your net profit for long-term success.

Explore more at Freight Girlz Dispatch Log.