How to Calculate Freight
Last Updated: August 2026
Freight calculation is how you turn distance, weight, and market reality into a rate that still leaves margin after diesel and payouts.
Summary
Common methods: per ton, per trip (FTL), per unit/Parchun. Always check rate against trip cost floor.
Common methods
- Per ton: rate × chargeable weight
- Per trip / FTL: fixed truck rate for the lane
- Per case / parcel (PTL): unit rate with minimums
Cost floor thinking
Before quoting, estimate diesel + driver + toll + (hire or own-truck allocation). If the quote is below cost floor, you are buying volume with losses.
Documentation
Whatever method you use, the LR and invoice must show agreed freight clearly to avoid party disputes.
Related product: Transport billing software
Frequently asked questions
What is chargeable weight? Often the higher of actual vs volumetric rules your contract uses—define it with the party.
Should toll be in freight or extra? Contract-dependent. Be explicit on the LR/invoice.