How to Calculate CPM & RPM (Made Simple) ⬇️ · Dispatcher University (Free)

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.

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