What Real RPM Is (and Why 90% Calculate It Wrong)
The most common mistake
Most expediters calculate RPM like this:
Why? Because you're ignoring the miles you don't get paid for but that still cost you money.
The correct formula
Where:
- Deadhead = Miles from your position to pickup
- Loaded = Miles you get paid for (pickup → delivery)
- Repositioning = Miles from delivery to your next freight zone
Full example
Situation:
- Your position: Toledo, OH
- Pickup: Detroit, MI (65 miles deadhead)
- Delivery: Laredo, TX (1,000 loaded miles)
- Offered pay: $1,500
The real breakdown:
- Deadhead (Toledo → Detroit): 65 miles
- Loaded miles (Detroit → Laredo): 1,000 miles
- Repositioning (Laredo → San Antonio): 280 miles
- Total REAL miles: 1,345 miles
Impact analysis
in imaginary earnings over 1,345 miles — a $0.38/mile (34%) error in your RPM calculation.
If your break-even is $1.10/mile, you think you're making $0.40/mile when you're actually only making $0.02/mile.
How to determine repositioning miles
Key question: "Where do I need to be for my next load?"
The app shows a "hot zones" map based on your history:
- How many miles to the nearest zone with good freight?
- What's your average wait time in that zone?
- What average RPM do you get there?
Zone comparison
Example: two loads, same pay.
better RPM on Load B ($0.995/mile difference) — same pay, completely different results.
Hands-on exercise
Recalculate your last load:
Immediate action
If you don't count all the miles, you're making decisions blind.
Real RPM is the only number that matters — "apparent" RPM only fools you.