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Freight margin calculator

Work out the margin and markup on a load, or find the customer rate you need to hit a target margin. Enter the customer rate and carrier cost and get the answer instantly.

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What do you want to work out?

Customer rate ($)Carrier cost ($)

Gross margin

15.0%

Gross profit$300

Margin15.0%

Markup17.6%

Gross figures only. Excludes accessorials, detention, claims and overhead.

Margin vs markup, in one minute

Margin is profit as a share of what the customer pays. Markup is profit as a share of what you pay the carrier. Same dollars, two different percentages, and mixing them up is how brokers underprice loads.

Margin formula.

(Customer rate − carrier cost) ÷ customer rate. A $2,000 load with a $1,700 carrier cost is $300 profit, or a 15% margin.

Markup formula.

(Customer rate − carrier cost) ÷ carrier cost. The same $300 on a $1,700 cost is a 17.6% markup.

Pricing for a margin.

To hit a target margin, divide the carrier cost by one minus the margin. Adding 15% to cost only gives you a 13% margin.

Margin FAQ

Frequently asked questions

Subtract the carrier cost from the customer rate to get gross profit, divide by the customer rate, and multiply by 100. A $2,000 load with a $1,700 carrier cost has a 15% margin.

Margin is profit as a percentage of the customer rate. Markup is profit as a percentage of the carrier cost. On the same load, markup is always the higher number.

Divide the carrier cost by one minus the target margin. For a 15% margin on a $1,700 carrier cost: $1,700 ÷ 0.85 = $2,000.

No. Gross margin only compares the customer rate with the carrier cost. Unbilled detention, absorbed accessorials, claims and overhead reduce what you actually keep.

A shipment that is light but takes up a lot of floor space stops the carrier from loading other freight. Many LTL carriers apply capacity or volume rules on longer shipments, so check your carrier’s tariff before booking.

Usually, yes. A TMS (transportation management system) built for brokers is the core of most freight broker software: it holds the load, carrier, customer and document records. Some vendors sell accounting, carrier vetting or load posting as separate add-ons, so check what is included in the price.

See margin on every load, lane and customer.

Polt is the AI-native TMS for freight brokers and 3PLs. Book a demo and bring a real load to see it run.

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