What is the difference between gross margin and net margin on a load?

Gross margin is shipper revenue minus carrier pay. Net margin further subtracts per-load overhead like factoring fees, insurance, and dispatch cost. Net margin is what actually lands in the brokerage after a load settles.

Should the fuel surcharge be included in revenue?

Yes. The fuel surcharge billed to the shipper is part of total revenue. If you pass most of it to the carrier, include that in carrier pay. The tool sums both linehaul and surcharge into total revenue.

Why use gross margin percent instead of just dollars?

Margin percent normalizes across load sizes so a 400 dollar margin on a 1600 dollar load (25 percent) is comparable to a 400 dollar margin on a 4000 dollar load (10 percent). Most brokerages target a gross margin percent floor.

What counts as per-load overhead?

Common per-load overhead includes factoring or quick-pay discounts, cargo and contingent insurance allocation, dispatch software cost per load, and a share of fixed office overhead. Enter your blended per-load figure.

Is a negative margin always a bad load?

Usually, but not always. Brokers sometimes accept a thin or negative margin to keep a lane, a customer, or a carrier relationship. The tool simply shows the math so the decision is informed rather than accidental.

Freight Broker Margin Calculator

Freight brokers and 3PLs live or die on margin per load. This calculator separates shipper-paid revenue from carrier cost and per-load overhead so you can see gross margin dollars, gross margin percent, and the net margin that actually reaches the brokerage after a load settles.

How it works

The math is straightforward but easy to get wrong under pressure on a phone:

Total revenue = shipper linehaul + shipper fuel surcharge
Total carrier cost = carrier pay (all-in to the truck)
Gross margin (dollars) = total revenue minus total carrier cost
Gross margin (percent) = gross margin divided by total revenue, times 100
Net margin (dollars) = gross margin minus per-load overhead

Margin percent is always taken against total revenue, which is the industry convention. Dividing by revenue (not by carrier cost) keeps the figure between 0 and 100 percent for normal loads and makes it comparable across load sizes.

Example

A shipper pays 1800 linehaul plus a 200 fuel surcharge, total revenue 2000. The carrier is paid 1500 all-in. Gross margin is 2000 - 1500 = 500, or 25%. With 60 of per-load overhead (factoring plus insurance), net margin is 500 - 60 = 440. That 440 is the real contribution from this load.

Tips

Track your brokerage’s break-even net margin per load and treat it as a floor.
A high gross margin percent on a tiny load can still be a poor dollar return — watch both columns.
If you quick-pay carriers, fold the discount you forgo into overhead so margins stay honest.