All-Mile RPM: Calculate Deadhead Before You Book
A load can advertise an attractive loaded RPM and still weaken the week. Pickup deadhead changes the denominator immediately, while tolls, time, and the destination change what the truck can earn next.
Quick answer
Quick answer
All-mile RPM equals gross load revenue divided by loaded miles plus pickup deadhead. For a useful decision, also subtract known trip-specific costs and compare the destination and time commitment.
- Put deadhead in the denominator before comparing loads.
- Keep cost estimates separate from confirmed charges.
- Compare the next market, not only the current load.
Use every mile required to reach delivery
Loaded RPM divides the gross rate by loaded miles. All-mile RPM adds the empty miles to pickup. A $2,850 rate over 542 loaded miles displays about $5.26 per loaded mile; adding 42 miles of deadhead lowers the all-mile number to about $4.88 before any trip costs.
Keep the math visible so a dispatcher or carrier can change the deadhead input without rebuilding a spreadsheet.
Separate RPM from net trip economics
Fuel, tolls, parking, permits, lumper charges, and load-specific equipment affect the cash result. Subtract only costs that have a defensible estimate, label the rest as unknown, and avoid presenting a planning model as a guaranteed margin.
- Gross revenue
- Loaded miles
- Deadhead miles
- Known trip costs
- Estimated trip time
Price the destination
A destination with limited reload supply can create the next deadhead move. Compare the rate with the truck's likely reload timing, home-time requirement, equipment fit, and the carrier's preferred markets.
Use a target and a review floor
The carrier should own the target RPM, review floor, and walk-away rule. Dispatch software can surface the comparison, but it should not lower the carrier's rule because the board is slow or a broker is waiting.
Reconcile the estimate after delivery
Compare planned miles and costs with the actual trip. That feedback improves future lane decisions and shows whether deadhead, delay, tolls, or accessorial recovery caused the largest variance.
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