About this calculator

Compare an offered loaded return with an explicit empty-return alternative. The incremental comparison credits avoided empty-trip costs, while the full-cost view adds the chosen fixed-cost allocation.

Inputs

How to use this calculator

Alternative return-load offer

  1. Empty-return alternative miles (mi)Miles that would be driven without the offer.
  2. Empty-return observed MPGFuel economy for the empty alternative.
  3. Return miles with the offered backhaul (mi)Include actual pickup/delivery detour miles in this route.
  4. Loaded return observed MPGFuel economy with this load on the proposed return.
  5. Fuel price (USD per U.S. gallon)Your applicable fuel cost; no live rate.
  6. Other avoidable empty-route cost per mile (USD/mi)Marginal non-fuel cost for the empty baseline.
  7. Other loaded-route variable cost per mile (USD/mi)Marginal non-fuel cost for the loaded alternative.
  8. Incremental pickup / delivery / handling cost (USD)Costs caused by accepting this load only.
  9. Other incremental backhaul cost (USD)Detention, tolls or fees only when incremental versus empty.
  10. Fixed-cost allocation to this return trip (USD)Used only for the full-cost view, not incremental-versus-empty break-even.
  11. Backhaul offer revenue (USD)Gross offer; enter any other offer deductions as incremental cost above.

Enter the shipment or scenario values, then select Calculate result.

Method

Formula and variables

Empty alternative cost = empty miles ÷ empty MPG × fuel price + empty miles × empty variable cost/mile. Loaded-trip cost = loaded miles ÷ loaded MPG × fuel price + loaded miles × loaded variable cost/mile + incremental handling/other costs. Incremental break-even offer versus empty = loaded-trip cost − empty alternative cost. Full-cost break-even = loaded-trip cost + entered fixed-cost allocation. Margins = offer − each break-even.

Empty-return alternative miles (mi)
Miles that would be driven without the offer.
Empty-return observed MPG
Fuel economy for the empty alternative.
Return miles with the offered backhaul (mi)
Include actual pickup/delivery detour miles in this route.
Loaded return observed MPG
Fuel economy with this load on the proposed return.
Fuel price (USD per U.S. gallon)
Your applicable fuel cost; no live rate.
Other avoidable empty-route cost per mile (USD/mi)
Marginal non-fuel cost for the empty baseline.
Other loaded-route variable cost per mile (USD/mi)
Marginal non-fuel cost for the loaded alternative.
Incremental pickup / delivery / handling cost (USD)
Costs caused by accepting this load only.
Other incremental backhaul cost (USD)
Detention, tolls or fees only when incremental versus empty.
Fixed-cost allocation to this return trip (USD)
Used only for the full-cost view, not incremental-versus-empty break-even.
Backhaul offer revenue (USD)
Gross offer; enter any other offer deductions as incremental cost above.

Interpret the result

Incremental margin and fully allocated margin can have different signs. Both are preserved because accepting a load versus returning empty is a different question from covering allocated trip cost.

Outputs: Incremental/full-cost break-even and offer margins

Two explicit trip alternatives, not a route optimizer or guaranteed profit forecast. Empty and loaded MPG/route miles can differ; do not count a cost as incremental if it also occurs on the empty alternative. Fixed allocation appears only in the full-cost view because it may be unavoidable either way. Negative incremental threshold is preserved; minimum nonnegative offer is shown separately. No tolls, deadhead search, service or contract assumptions are imported.

Worked example

Check the arithmetic

This example uses the starting values shown above. The arithmetic below is calculated independently of the interactive result.

Work through the calculation

  1. Empty alternative = 500 ÷ 8 × $4 + 500 × $0.25 = $375.
  2. Loaded trip = 520 ÷ 6 × $4 + 520 × $0.30 + $75 + $25 = $602.666667.
  3. Incremental break-even = $602.666667 − $375 = $227.666667. A $500 offer gives $272.333333 incremental margin, displayed $272.33.

Compare the displayed result

Expected displayed result: $272.33 incremental margin

FAQs

Why is fixed allocation absent from incremental break-even?

Fixed costs may exist under both alternatives. They appear in the full-cost comparison; only costs changed by the offered trip belong in the incremental difference.

Example inputs and options

Starting values are examples unless a field identifies a dated rule. Unit selectors convert only fields marked for conversion. Rates and model options keep the units and basis shown in their labels.

Empty-return alternative miles (mi)
Example: 500
Empty-return observed MPG
Example: 8
Return miles with the offered backhaul (mi)
Example: 520
Loaded return observed MPG
Example: 6
Fuel price (USD per U.S. gallon)
Example: 4
Other avoidable empty-route cost per mile (USD/mi)
Example: 0.25
Other loaded-route variable cost per mile (USD/mi)
Example: 0.3
Incremental pickup / delivery / handling cost (USD)
Example: 75
Other incremental backhaul cost (USD)
Example: 25
Fixed-cost allocation to this return trip (USD)
Example: 600
Backhaul offer revenue (USD)
Example: 500