Freight quote calculator
Calculate a minimum freight selling price from all trip kilometres, operating cost, extras and target gross margin.
This result is a planning aid. Always verify legal limits, vehicle documents, route restrictions and carrier tariffs separately.
How to calculate a minimum freight quote
A cost-based freight quote should cover the cost of every kilometre caused by the load, including empty kilometres, plus trip-specific costs. After the full trip cost is known, divide it by one minus your target gross margin to calculate the minimum selling price before commercial rounding.
Worked example
Example: 1,000 loaded km, 120 empty km, €1.20/km true cost, €180 trip-specific costs, 15% target gross margin and rounding up to the nearest €10.
| Step | Calculation | Result |
|---|---|---|
| All trip kilometres | 1,000 + 120 | 1,120 km |
| Trip cost | 1,120 × €1.20 + €180 | €1,524 |
| Break-even per loaded km | €1,524 ÷ 1,000 | €1.524/loaded km |
| Minimum quote for 15% margin | €1,524 ÷ 0.85 | €1,792.94 |
| Rounded commercial quote | Round up to nearest €10 | €1,800 |
| Profit at rounded quote | €1,800 − €1,524 | €276 |
| Actual gross margin | €276 ÷ €1,800 × 100 | 15.3% |
Minimum revenue by target gross margin
Example with a €1,524 total trip cost before commercial rounding.
| Target gross margin | Minimum quote |
|---|---|
| 10% | €1,693.33 |
| 15% | €1,792.94 |
| 20% | €1,905.00 |
| 25% | €2,032.00 |
| 30% | €2,177.14 |
How empty kilometres raise the required quote
Example assumes 1,000 loaded km, €1.20/km true cost, €180 extra trip cost and a 15% target margin. Values are shown before commercial rounding.
| Empty km | Trip cost | Minimum quote |
|---|---|---|
| 0 km | €1,380 | €1,623.53 |
| 100 km | €1,500 | €1,764.71 |
| 200 km | €1,620 | €1,905.88 |
| 300 km | €1,740 | €2,047.06 |
Common questions
Why should a freight quote include empty kilometres?
Because empty kilometres are still part of the trip cost. They consume fuel, driver time, maintenance, tyres and equipment capacity even though they do not generate loaded-kilometre revenue.
Why is target margin not added directly to cost?
Gross margin is measured as profit divided by revenue. To achieve a target gross margin, divide cost by one minus the target margin. Adding 20% to cost produces a 16.7% gross margin, not 20%.
What is break-even per loaded kilometre?
It is the full trip cost divided by loaded kilometres. It can be useful for quoting, but profitability should still be checked against the cost of all loaded and empty kilometres.
Which costs belong in extra trip costs?
Add only trip-specific costs that are not already included in your true cost per kilometre, such as a ferry, tunnel, special permit or parking fee.
Why round the final quote upward?
Commercial rounding converts the exact mathematical minimum into a practical quote while preserving at least the selected target margin.
Method: the examples follow the calculator's cost-based quote model. The target is gross margin on revenue, and the final quote is rounded upward only after the mathematical minimum is calculated.
Last verified: 2026-08-31
How is a freight quote built?
- First, calculate the full trip cost from both loaded and empty kilometres. Empty kilometres are not free and should not be ignored in pricing.
- The target gross profit margin is calculated from the final selling price. For example, a 15% margin is not the same as a 15% markup on cost.
- Trip-specific extra costs are added before the margin calculation so they are also covered by the final selling price.
- Commercial rounding only moves the quote upward to the selected step and then shows the actual margin after rounding.