1. What is Rate Per Mile?

The Rate Per Mile calculation is used in the hot shot trucking industry to determine the cost per mile for a given load. It helps carriers and shippers evaluate the profitability of a haul by dividing the total rate by the distance traveled.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Total Rate — The total payment for the haul in dollars
• Distance — The total miles traveled for the haul

Explanation: This calculation provides a standardized way to compare different hauls regardless of distance.

3. Importance of Rate Per Mile Calculation

Details: Knowing your rate per mile helps in pricing loads competitively, calculating operational costs, and determining profitability for hot shot trucking businesses.

4. Using the Calculator

Tips: Enter the total rate in dollars and the distance in miles. Both values must be positive numbers. The calculator will compute the rate per mile in dollars.

5. Frequently Asked Questions (FAQ)

Q1: What's a good rate per mile for hot shot trucking?
A: Rates vary but typically range from $1.50 to $3.00 per mile depending on load type, distance, and market conditions.

Q2: Should I include deadhead miles in the distance?
A: For accurate profitability calculations, you might want to calculate both with and without deadhead miles.

Q3: How does this differ from cost per mile?
A: Rate per mile is revenue per mile, while cost per mile includes all expenses (fuel, maintenance, etc.).

Q4: When should I use this calculation?
A: Use it when evaluating load offers, planning routes, or analyzing your business performance.

Q5: What factors affect rate per mile?
A: Factors include freight type, distance, seasonality, fuel prices, and market demand.