Mileage rate
What a driver is paid for each mile on a load, set per driver with a start date.
Also called: Per-mile rate, Cents per mile, CPM.
Does it pay the driver? Yes — it adds a line to the driver’s pay.
It is the rate the miles are multiplied by.
A per-mile rate is the usual way an owner-operator pays a driver: the load’s calculated miles times the rate. Rates vary with the region, the freight and the driver; a range of $0.55 to $0.75 a mile is common for a 1099 driver on a leased truck.
A rate should carry a start date. When a driver gets a raise, loads that ran before the raise are still paid at the old rate, and a pay sheet from last month still adds up.
The per-mile rate is the base. Live loads, stop-offs and detention go on top of it as flat amounts.
Read next
- Calculated miles — The mileage a load is paid on — the driving distance from pickup to drop — as opposed to what the odometer says.
- Accessorial — Anything paid beyond the per-mile rate: live loads, stop-offs, detention.
- 1099 driver — A driver paid as an independent contractor: no withholding, and a 1099-NEC at year end when the total crosses the threshold.
Made with the free mileage rate at loadtally.app/tools/glossary/mileage-rate — LoadTally, loads, settlements and driver pay for owner-operators.
Questions
What does Mileage rate mean?
What a driver is paid for each mile on a load, set per driver with a start date.
Does Mileage rate pay the driver?
Yes — it adds a line to the driver’s pay. It is the rate the miles are multiplied by.