How to Calculate Driver Settlements Per Mile

What Per-Mile Pay Means

If you need to calculate driver settlements per mile, you are working with the most common pay structure in the trucking industry. Per-mile pay means the driver earns a fixed dollar amount for every dispatched mile they drive on a load. It is the standard for OTR (over-the-road) and regional company drivers, and it is also used by many owner-operators running under carrier authority. Understanding how to calculate driver settlements per mile correctly is essential for paying drivers accurately and avoiding costly disputes.

Per-mile pay is favored by carriers who run consistent lanes because it makes per-load costs predictable. Typical company driver rates range from $0.45 to $0.65 per mile, while owner-operator rates typically fall between $1.00 and $1.80 per mile. For a broader overview of all pay structures, see our complete guide to driver settlements.

The Per-Mile Settlement Formula

The core formula is simple:

Gross Pay = Total Dispatched Miles x Per-Mile Rate

But a real-world settlement has more components. The full formula is:

Net Settlement = Gross Mileage Pay + Accessorial Pay + Fuel Surcharge Pass-Through + Reimbursements - Fuel Card Deductions - Advances - Insurance - Escrow - Other Deductions

Each of these components must be calculated individually and then combined to produce the final net amount the driver receives. The sections below walk through each step with real numbers.

Step-by-Step Calculation Process

Follow these numbered steps every time you calculate a per-mile settlement:

1. List all completed loads — Gather every load the driver delivered during the settlement period. For each load, record the origin, destination, and dispatched miles.
2. Multiply miles by the per-mile rate — For each load, calculate: load miles x rate = load pay. Sum all load pay amounts to get gross mileage pay.
3. Add accessorial earnings — Add detention pay, stop-off charges, layover pay, lumper fee reimbursements, and any other agreed-upon accessorials.
4. Add fuel surcharge pass-through — If your driver agreement includes passing a portion of the fuel surcharge to the driver, add that amount.
5. Total all deductions — Sum fuel card charges, cash advances, insurance deductions, escrow holdbacks, equipment lease payments, and any other deductions.
6. Subtract deductions from gross — The result is the net settlement amount.

Real Calculation Examples

Here are three scenarios that show how per-mile settlements work in practice.

Scenario 1: Single Load, Simple Calculation

A company driver at $0.55/mile hauls one load: Dallas, TX to Jacksonville, FL (1,100 miles).

• Gross mileage pay: 1,100 x $0.55 = $605.00
• No accessorials
• Fuel card charges: - $285.00
• Insurance deduction: - $45.00
• Net settlement: $605.00 - $330.00 = $275.00

Scenario 2: Multiple Loads with Accessorials

A company driver at $0.58/mile completes two loads during the week:

• Load 1: Chicago, IL to Indianapolis, IN — 185 miles = $107.30
• Load 2: Indianapolis, IN to Charlotte, NC — 530 miles = $307.40
• Gross mileage pay: $107.30 + $307.40 = $414.70
• Detention pay on Load 2 (2 hours at $50/hr): + $100.00
• Total gross: $514.70
• Fuel card charges: - $195.00
• Cash advance: - $50.00
• Insurance: - $45.00
• Escrow holdback: - $25.00
• Net settlement: $514.70 - $315.00 = $199.70

Scenario 3: High-Mileage Week for Owner-Operator

An owner-operator at $1.25/mile completes three loads totaling 3,200 miles:

• Gross mileage pay: 3,200 x $1.25 = $4,000.00
• Fuel surcharge pass-through: + $480.00
• Lumper reimbursement: + $75.00
• Total gross: $4,555.00
• Fuel card charges: - $1,620.00
• Trailer rent: - $300.00
• Insurance (OA + physical damage): - $125.00
• ELD fee: - $35.00
• Escrow: - $50.00
• Net settlement: $4,555.00 - $2,130.00 = $2,425.00

Loaded vs. Empty Miles

A critical distinction in per-mile pay is whether the carrier pays for loaded miles only or for all miles including empty (deadhead) miles. This single policy decision can significantly affect driver satisfaction and settlement amounts.

• Loaded miles only — The driver is paid only for miles driven while hauling a load. Deadhead miles to reach the next pickup are unpaid. This is the most common approach for company drivers.
• All miles (loaded + empty) — The driver is paid for every mile driven, including deadhead miles between loads. Some carriers use this approach to attract drivers, sometimes at a slightly lower per-mile rate to offset the additional paid miles.
• Reduced rate for empty miles — A hybrid approach where the driver earns the full rate on loaded miles and a reduced rate (e.g., $0.30/mile) on deadhead miles. This compensates drivers for repositioning while keeping carrier costs manageable.

Whatever policy you choose, document it clearly in the driver agreement and apply it consistently. Drivers who discover mid-settlement that their deadhead miles were unpaid will be understandably frustrated if they expected otherwise.

Fuel Surcharge Inclusion

Fuel surcharges (FSC) are additional charges billed to customers on top of the linehaul rate to offset fluctuating fuel costs. How the fuel surcharge is handled in per-mile driver settlements varies by carrier:

• No pass-through — The carrier retains 100% of the fuel surcharge. The driver's per-mile rate is their complete compensation. This is typical for company drivers where the carrier covers fuel costs.
• Full pass-through — 100% of the fuel surcharge revenue is passed to the driver, usually for owner-operators who pay for their own fuel.
• Partial pass-through — A percentage of the fuel surcharge (e.g., 60% or 75%) is passed to the driver, with the carrier retaining the rest to cover fuel price risk.

If your driver agreement includes any fuel surcharge pass-through, it should appear as a separate line item on the settlement, not rolled into the per-mile rate. This transparency lets drivers verify the calculation independently.

Handling Deductions

Deductions in per-mile settlements follow the same principles as any other pay structure, but there are some per-mile-specific considerations:

• Fuel cards — The largest deduction for most drivers. Every fuel purchase is itemized and deducted. Ensure transaction dates fall within the correct settlement period.
• Cash advances — Pre-trip or emergency funds disbursed to the driver. Track each advance individually with date, amount, and purpose.
• Insurance — Weekly or per-settlement contributions for occupational accident, health, physical damage, or bobtail coverage.
• Equipment lease — For lease-operators, the weekly truck or trailer payment.
• Escrow — Safety deposit holdback, typically $25 to $50 per settlement, returned when the driver departs in good standing.
• Maintenance charges — Carrier-provided repairs or services billed against the driver's settlement, common for owner-operators.

Common Mistakes to Avoid

These errors are the most frequent sources of per-mile settlement inaccuracies:

• Inconsistent mileage source — Switching between practical miles, hub miles (HHG), and GPS miles from load to load creates confusion and disputes. Pick one source and use it for every calculation.
• Forgetting deadhead miles when owed — If your driver agreement includes pay for empty miles, make sure your dispatch system tracks and includes them. Missing 200 deadhead miles at $0.55 is a $110 error.
• Delayed fuel card reconciliation — If fuel card transactions are not imported until settlement day, there is no time to catch errors. Reconcile fuel data daily.
• Applying deductions to the wrong period — A fuel purchase on Saturday night may fall into the current or next settlement period depending on your cutoff. Define the cutoff clearly and apply it consistently.
• Rounding errors — Small rounding differences add up over weeks and months. Use at least two decimal places in all calculations and round only the final net amount.
• Missing accessorial pay — Detention, lumper, and stop-off charges agreed upon during dispatch must flow through to the settlement. Verify that every accessorial recorded in dispatch appears on the settlement.

Automating Per-Mile Calculations

Manually calculating per-mile settlements in spreadsheets is time-consuming and error-prone. Every load requires looking up miles, multiplying by the rate, finding and entering fuel card transactions, and summing deductions. For a fleet of even 10 drivers, this process can take hours each settlement period.

FleetLegend automates the entire per-mile calculation process:

• Dispatched miles from completed loads flow directly into the settlement calculation.
• The driver's stored per-mile rate is applied automatically, with no manual rate lookup.
• Fuel card transactions are imported and matched to drivers in real time.
• Accessorials (detention, lumper, stop-off) recorded during dispatch are included automatically.
• Advances, escrow, and recurring deductions are tracked and applied without manual intervention.
• The final settlement statement is generated with one click and can be synced to QuickBooks for accounting.

What used to take 30 minutes per driver can be completed in seconds with zero calculation errors. See how FleetLegend handles settlements.

Frequently Asked Questions

What is a typical per-mile rate for company drivers?

Company driver per-mile rates typically range from $0.45 to $0.65 for standard dry van freight. Rates vary based on experience, freight type, region, and the carrier's pay structure. Specialized freight (reefer, flatbed, hazmat) commands rates on the higher end or above this range. Owner-operators receiving per-mile pay generally earn $1.00 to $1.80 per mile before their own expenses.

Should I pay drivers for empty (deadhead) miles?

It depends on your operation and what you can sustain financially. Paying for empty miles makes your carrier more attractive to drivers, but it increases your cost per load. Many carriers compromise by paying a reduced rate for empty miles. Whatever you decide, document the policy clearly in the driver agreement to prevent disputes.

How do I determine the mileage for each load?

Most carriers use mileage software such as PC Miler, Rand McNally MileMaker, or the mileage calculation built into their TMS. These tools calculate the practical (shortest legal truck route) distance between pickup and delivery. Some carriers use hub miles (based on household goods mileage guides) or actual GPS miles from telematics. The key is to pick one source and use it consistently for all loads and all drivers.

Can FleetLegend handle different per-mile rates for different drivers?

Yes. FleetLegend stores a unique pay plan for each driver. You can assign different per-mile rates to different drivers based on their experience, freight type, or any other criteria. The system applies the correct rate automatically when generating settlements. You can also set different rates for loaded versus empty miles within the same driver's pay plan. Learn more about FleetLegend's pay plans.

Conclusion

Calculating per-mile driver settlements accurately requires consistent processes: use the same mileage source for every load, reconcile fuel cards daily, and track accessorials from dispatch through settlement. Manual spreadsheet calculations are error-prone and time-consuming. FleetLegend automates the entire per-mile calculation process, pulling miles from dispatch, applying stored pay rates, importing fuel card transactions, and generating settlement statements with one click. What takes hours manually can be done in minutes with zero calculation errors.