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Carrier Tool

Carrier Profitability
Calculator

Know your numbers before you haul. Calculate net profit, operating ratio, and cost per km for any load.

Quick Presets— pre-fill all fields instantly

Revenue

Distance

Fuel

Typical long-haul: 32–40 L/100km

Costs

Include total driver cost — base pay + per-diem if applicable

Insurance + truck payment + maintenance allocated per trip

Understanding Operating Ratio

What is operating ratio?

Operating ratio (OR) = Total Costs / Revenue × 100. An OR of 85% means 85 cents of every dollar earned goes to costs, leaving 15 cents as profit. The trucking industry average is typically 90–95%.

Benchmarks

  • Under 80% — Excellent: top-quartile carrier
  • 80–90% — Good: sustainable and competitive
  • 90–95% — Tight: common for single trucks
  • Over 95% — Unprofitable on this load

This calculator is for planning purposes only. Actual profitability depends on many factors including maintenance timing, insurance premiums, financing terms, and tolls. Consult with your accountant for business tax and depreciation treatment.

Frequently Asked Questions

What costs should a carrier include when calculating profitability per load?
A complete carrier profitability calculation includes: driver pay (per mile or per hour plus layover, detention, and breakdown pay), fuel cost adjusted by the current diesel price and the truck's average fuel efficiency (MPG or L/100km), fixed costs allocated per mile (insurance, permits, licensing, lease or depreciation), variable maintenance costs per mile, tolls, lumper fees, and any applicable border crossing fees. For cross-border Canada-US runs, currency conversion and customs brokerage costs should also be included.
What is a typical target net margin for a Canadian trucking carrier?
Canadian for-hire carriers typically target a net operating margin of 5-12% after all direct and overhead costs. Owner-operators often aim for higher gross margins (25-35%) but carry more of the fixed costs directly. Margins compress during periods of high diesel prices or excess capacity. Monitoring cost-per-mile (CPM) and revenue-per-mile (RPM) weekly gives carriers an early signal when a lane or customer relationship is becoming unprofitable.
How do I calculate the break-even rate per mile for a load?
Divide your total estimated costs for the trip (fuel, driver, proportional fixed costs, variable costs) by the loaded miles. For example, if a 500-mile round trip costs $1,250 all-in, your break-even rate is $2.50 per loaded mile. Any rate above that generates margin; below it is a loss. Including deadhead (empty) miles in your cost calculation gives a more realistic picture since you pay fuel and driver costs on empty miles as well.
How does the Canada-US exchange rate affect carrier profitability on cross-border lanes?
Many cross-border rates are quoted in US dollars. When the Canadian dollar weakens against the USD, Canadian carriers earn more CAD per mile on US-rated loads, which can significantly boost margin on those lanes. Conversely, Canadian-dollar costs (fuel purchased in Canada, driver pay in CAD) remain stable. Carriers operating cross-border lanes should monitor the CAD/USD rate and consider USD-denominated fuel cards at US truck stops to manage exposure.
About this tool

What it calculates

Calculates net profit, operating ratio, and cost per km or mile for a single freight load, breaking down fuel, driver pay, and fixed costs in CAD or USD.

Who it's for

Owner-operators and carrier fleet managers evaluating whether a load is worth accepting at a given rate.

What you'll need

Gross revenue, load distance, fuel cost per litre, estimated fuel consumption, driver pay rate, and fixed cost per km.

How to use the result

Use as a pre-acceptance screening tool. If the operating ratio exceeds your target or the load is unprofitable, negotiate the rate or decline. Actual costs vary with driving conditions, border delay, and accessorials.

Key assumptions

Fixed cost inputs default to industry averages if left blank. Fuel consumption is estimated for a standard Class 8 truck — reefer, tanker, or flatbed operations have different consumption profiles.

When to confirm with a specialist

For complex loads involving US operations, fuel surcharge negotiations, or multi-stop costing, contact OTR Logistics Solutions' carrier relations team.

Need help with this shipment?

OTR Logistics Solutions specialists available 24/7 — no account required.

1-855-247-OTR0

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