How to Calculate CPM & RPM (Made Simple) ⬇️
I think a lot of new dispatchers get confused when people talk about CPM and RPM. It does sound complicated, but honestly, it's super simple once you see how the math works. CPM = Cost Per Mile RPM = Rate Per Mile Both help you understand whether the load actually makes sense for your carrier. CPM: Cost Per Mile This tells you how much it costs the truck to run one mile. It includes items like fuel, insurance, truck payment, maintenance, etc. Formula: Total Weekly/Monthly Costs ÷ Total Miles = CPM Example: Let's say your carrier spends: $1,200 on fuel $600 on truck payment $300 on insurance $200 on maintenance Total = $2,300 per week And they drive 2,500 miles. CPM = $2,300 ÷ 2,500 = $0.92 per mile This means anything less than $0.92 is a loss. Anything above that is profit. RPM (Rate Per Mile) This is what the broker is paying per mile. Formula: Total Rate ÷ Total Miles = RPM Example: Broker pays $2,000 for the 1,000-mile load. RPM = $2,000 ÷ 1,000 = $2.00/mile That's it. Super simple. Putting it together the part most dispatchers skip. If your RPM is greater than your CPM, then the load is profitable. If it's lower → the truck is losing money. Example: CPM = $0.92 RPM = $2.00 Profit per mile = $1.08 Total profit on a 1,000-mile load = $1,080 That's why these figures are important to know. Why this helps you as a dispatcher you negotiate stronger because you know what your carrier actually needs. You stop booking cheap freight that kills the truck. Carriers trust you more because you are thinking like a business owner, not just trying to grab any load.