Calculate a load’s gross margin
Enter all amounts in the same currency. Example values are prefilled for illustration. The calculation runs in your browser.
Gross profit before overhead
Gross margin
Markup on direct costs
Total direct costs: 2,000.00
Margin and markup use different bases
Gross profit = customer revenue − carrier cost − other direct costs. This is the remainder after the costs you enter. It does not automatically account for office overhead, taxes, financing costs, bad debt, or commissions.
Gross margin % = gross profit ÷ customer revenue × 100. Margin expresses the remainder as a share of the sell rate. It requires positive revenue.
Markup % = gross profit ÷ total direct costs × 100. Markup compares the remainder with the cost base. When direct costs are zero, markup is not applicable.
Work through a complete example
Suppose the customer rate is 2,500, the carrier cost is 1,950, and other direct costs are 50. The total direct cost is 2,000, leaving 500 of gross profit. Dividing 500 by 2,500 gives a 20% margin. Dividing 500 by 2,000 gives a 25% markup.
If another 100 of cost is absorbed by the brokerage and the customer rate stays unchanged, gross profit falls to 400 and margin falls to 16%. This illustrates why approved extra charges and final carrier costs belong in the shipment record. The numbers are examples, not market rates or targets.
Use consistent costs and currency
Include only the costs that belong in the definition you are evaluating, and avoid counting the same charge twice. If the carrier rate already includes a charge, do not enter it again under other costs. Use one currency throughout.
A negative result means the entered direct costs exceed the customer revenue. A positive result does not establish net profitability for the brokerage. Use your finance team’s reporting definitions when comparing loads or accounting reports.
Bring the calculation into the load workflow
Use this tool to check an example or explore a proposed quote. To connect rates with carrier agreements, document approvals and invoicing, evaluate a freight broker TMS. TruckerPro describes load margin controls as part of its brokerage offering.
The calculator does not save, submit or share your entries. All signup links lead to truckerpro.ca.
Questions, answered.
Is margin the same as markup?
No. Margin divides gross profit by revenue; markup divides gross profit by direct costs. A load with 2,500 revenue and 2,000 direct costs has a 20% margin and a 25% markup.
Are my load rates uploaded?
No. This calculator runs locally in your browser. It has no submission endpoint and does not save your entries.
Does the result include overhead and taxes?
No. It subtracts only the carrier cost and other direct costs you enter. It is an arithmetic planning tool, not a full accounting profit calculation.