Freight Broker Margin Calculator
Find a freight broker’s gross margin, margin %, markup and per-mile rates, plus the shipper rate or carrier pay that hits a target margin.
A freight broker’s margin is the difference between what the shipper pays and what the carrier is paid. This calculator shows that margin in dollars, as a percentage of the shipper rate and as a markup on carrier cost, breaks it down per mile, and works backwards from a target margin to the rate you need to quote or the most you can pay a carrier.
How to use this tool
- Enter the shipper rate and the carrier pay for the load.
- Optionally enter loaded miles to see per-mile rates.
- Enter your target margin to get the matching quote and maximum carrier pay.
- Use the table to compare other target margins.
Formula
Margin % = (shipper rate − carrier pay) ÷ shipper rate × 100; markup % = (shipper rate − carrier pay) ÷ carrier pay × 100
To hit a target margin t: shipper rate = carrier pay ÷ (1 − t), and maximum carrier pay = shipper rate × (1 − t). Margin and markup are not the same: a 20% margin equals a 25% markup.
Example
A 900-mile load pays $2,800 and the carrier takes $2,350. The gross margin is $450, which is 16.07% of the shipper rate and a 19.15% markup on the carrier pay. Per mile, the shipper pays $3.11, the carrier gets $2.61 and the margin is $0.50. To earn a 15% margin with the same carrier you could quote as low as $2,764.71, or pay a carrier up to $2,380 at the current rate.
Frequently asked questions
What is the difference between margin and markup?
Margin divides the profit by the selling price (the shipper rate); markup divides it by the cost (carrier pay). The same $450 profit is a 16.07% margin but a 19.15% markup, so say which one you mean in quotes and reports.
What margin do freight brokers make?
It swings with the market, the lane and the customer. Margins tend to squeeze when spot carrier rates rise faster than contract shipper rates. Track your own average per lane rather than relying on a single figure.
Should I look at margin per load or per mile?
Both. Margin per load pays the bills, but margin per mile helps compare short and long hauls and spot lanes where you are underpricing.
Last updated: 2026-10-30