Freight broker margin calculator

How to use this calculator

Enter what the shipper pays and what you pay the carrier. If either side has extras such as fuel, detention or lumper fees, add them in their own boxes. Then set the margin you are aiming for.

You get three numbers: your margin in dollars, your margin as a percent, and the most you can pay a carrier and still hit your target. That last one is the number to have in front of you when you start calling carriers.

The formula

Margin = total billed to shipper − total paid to carrier
Margin percent = margin ÷ total billed to shipper
Highest carrier rate = total billed × (1 − target margin) − extras paid to carrier

A worked example

A shipper pays $2,500. You find a carrier at $2,000, with no extras on either side. Your margin is $500, or 20%. If your target is 15%, the most you could pay that carrier is $2,125.

Margin is not markup

Margin is measured against what the shipper pays. Markup is measured against what the carrier gets. The load above has a 20% margin but a 25% markup, so be sure which number you are quoting. For more on setting a target, read how to price a load.

Common questions

How do I calculate freight broker margin?

Subtract everything you paid the carrier from everything you billed the shipper. Divide the result by the amount billed to get a percent.

Should accessorials be included in margin?

Yes. Detention, lumpers and fuel all change what you bill or pay, so leaving them out overstates or understates the real margin.

Does this calculator save what I enter?

No. It runs in your browser, and nothing you enter is sent anywhere.