Deadhead, RPM and Load Profitability Explained
Deadhead is the distance a truck drives empty, usually between a delivery and the next pickup; it consumes fuel, driver hours and equipment wear while earning nothing. RPM is revenue divided by miles, and the useful version is all-in RPM: revenue divided by loaded plus deadhead miles. Load profitability is revenue minus every cost attributable to the load, and profit per day is what decides whether a desk grows.
- All-in RPM = revenue divided by loaded plus deadhead miles
- Deadhead % = deadhead divided by total miles driven
- Load profit = revenue minus (all-in miles times cost per mile) minus accessorial costs
- Profit per day = load profit divided by days the truck was committed
- Revenue is not profit: fuel, resets, uninvoiced detention and maintenance all consume it
Two loads that look identical
Both loads pay $2,600 over 800 loaded miles, so loaded-only RPM is $3.25 for each. Load A has 30 miles of deadhead and Load B has 260.
| Figure | Load A | Load B |
|---|---|---|
| Deadhead miles | 30 | 260 |
| All-in RPM | $3.13 | $2.45 |
| Cost at $1.95 per mile | $1,619 | $2,067 |
| Profit | $981 | $533 |
Common mistakes
Profit leaks in predictable places.
- Quoting loaded-only rate per mile and believing it
- Treating deadhead as unavoidable instead of a number that can be planned down
- Measuring margin per load instead of margin per day
- Leaving accessorials such as detention uninvoiced
- Keeping no maintenance reserve, so one repair erases a good month
Frequently asked questions
What is deadhead in trucking?
Deadhead is the distance a truck drives empty, usually between a delivery and the next pickup. It consumes fuel, driver hours and equipment wear while generating no revenue.
How do you calculate rate per mile?
Divide load revenue by miles driven. All-in rate per mile uses loaded miles plus deadhead miles, which reflects what the load really pays.
Is a higher rate per mile always more profitable?
No. A high loaded-mile rate can still lose money once deadhead, tolls, lumpers and the days the truck is committed are included.
Practise this inside EK Virtual Dispatch Company
EK Virtual Dispatch Company is the dispatch simulator built by EK Dispatch Academy, the training provider operated by EK Freight Lines Inc.
- What is a truck dispatch simulator?
- How to practice booking your first truck load
- Truck dispatcher rate negotiation practice
- Hours of service practice for dispatchers
- Freight broker vs carrier vs dispatcher
- Backhaul planning for dispatchers
- Realistic truck dispatch problems and responses
- Inside the final practical dispatch exam