A workable hot shot rate starts with the cost of the complete trip, including empty travel and driver time. Divide that cost by the loaded distance only after you have added pickup travel, return travel, waiting, equipment costs and overhead. A quoted rate per loaded kilometre can look attractive while the trip loses money.
There is no verified nationwide market-rate survey behind the examples below. Every amount is an illustrative Canadian-dollar input chosen to show the calculation. Replace it with your receipts, equipment costs, pay arrangement and lane quotes. For equipment and startup planning, begin with the Canadian hot shot trucking guide.
What belongs in a hot shot quote?
| Input | How to estimate it |
|---|---|
| Total distance | Empty travel to pickup, loaded delivery distance and the realistic next leg |
| Fuel | Total kilometres × litres per 100 km ÷ 100 × price per litre |
| Driver time | Driving, loading, unloading, waiting and administration |
| Maintenance and tires | A reserve based on your own equipment history |
| Equipment and overhead | An allocation of financing or depreciation, insurance and business overhead |
| Trip charges | Tolls, permits, parking and other costs specific to the booking |
| Profit target | A deliberate margin above the fully costed trip |
If you drive your own truck, include compensation for your working time. Cash left after buying fuel is not the same as profit.
Use one distance unit throughout the calculation. One mile is 1.609344 kilometres, so a price per mile and a price per kilometre are not interchangeable. A C$2.00/km quote is approximately C$3.22/mile for the same distance basis.
Worked example: 300 loaded kilometres
Assume a job involves 50 km to pickup, a 300 km loaded delivery and 150 km to reposition afterward. That is 500 total km, of which 200 km are empty.
| Illustrative cost | Calculation | Amount |
|---|---|---|
| Fuel | 500 km × 20 L/100 km × C$1.70/L | C$170 |
| Maintenance and tires | 500 km × C$0.15/km | C$75 |
| Driver compensation | 8 hours × C$35/hour | C$280 |
| Equipment and overhead allocation | Assumed share for this trip | C$150 |
| Tolls and parking | Assumed trip charges | C$25 |
| Total estimated cost | C$700 |
The break-even quote is C$700, or C$2.33 per loaded km. Spread across all 500 km, the same revenue is only C$1.40 per total km.
For a target margin of 15% of revenue:
Quote = C$700 ÷ (1 − 0.15) = C$823.53
Rounded up to C$825, that is C$2.75 per loaded km. Revenue less estimated costs is C$125, or about 15.2% of revenue, before income tax and any costs omitted from the model. Taxes on the invoice require a separate assessment; this example does not determine their treatment.
A 15% markup would produce C$805, with a margin of about 13%. Markup and margin answer different questions.
Why deadhead changes the rate
The example has a deadhead share of 200 ÷ 500 = 40% of total kilometres. Do not divide empty distance by loaded distance and compare that result with a fleet metric defined as empty distance divided by total distance.
Now suppose the return plan changes and you must drive another 150 empty km, taking two additional paid hours:
| Additional illustrative cost | Amount |
|---|---|
| Fuel: 150 km × 20 L/100 km × C$1.70/L | C$51.00 |
| Maintenance: 150 km × C$0.15/km | C$22.50 |
| Driver time: 2 hours × C$35/hour | C$70.00 |
| Additional cost | C$143.50 |
At the original C$825 quote, revised costs of C$843.50 create a C$18.50 loss. This assumes no additional overhead or overnight cost, so a real delay could cost more.
A return load might improve the result, but include its pickup detour, extra time and loading requirements too. Do not count a load-board listing as booked revenue. Our deadhead guide explains how to compare the whole movement.
Price waiting and urgency explicitly
A short urgent delivery may consume most of a working day. Mileage alone can understate the cost of loading, delivery appointments and getting back into position.
For a quote, record the service window and any minimum charge. Agree on loading and unloading free time, the hourly waiting charge after that period, cancellation terms and approval for additional work. Use the customer's rate confirmation or accepted quote to document those terms before dispatch.
An urgent label does not establish a profitable rate by itself. Check whether the schedule is feasible before accepting it.
Check fuel without counting it twice
If the fuel price in the first example rises by C$0.10/L, its 100 litres cost another C$10. To preserve a 15% margin on that additional cost, the quote would need roughly C$11.76 more.
You can include fuel in one all-in price or show an agreed base and fuel surcharge. When comparing offers, combine the applicable components once. Do not add the whole fuel estimate again to an all-in quote that already covers it.
Use the cost-per-mile calculator and fuel surcharge calculator to check inputs. The calculations still depend on accurate distance, consumption and cost assumptions.
How tariffs affect a cross-border hot shot quote
A trade dispute can change whether a shipment proceeds or whether the return load remains available. Customs charges on the goods do not become an automatic percentage increase in your transport price.
Before quoting, get the importer or broker's confirmation for the goods and entry date, agree on waiting and cancellation terms, and cost an empty return. Our September U.S.–Canada trade-war update covers the current policy changes and the distinction between tariffs and freight costs.
A quote checklist you can reuse
Before accepting a load, write down the equipment, shipment weight and dimensions, pickup and delivery appointments, total planned distance, estimated paid time, complete cost, quoted currency and payment terms. Then calculate the result if the planned backhaul disappears.
After delivery, replace estimates with actual fuel, distance, time and charges. Compare the result with the quote. Repeating that comparison builds a useful pricing history for your own truck and lanes.
What is a good hot shot rate per kilometre?
One that covers the fully costed trip and your required margin at a price the customer will accept. The C$2.75/km result above belongs to one invented example, not a recommended Canadian market rate.
Should an owner-operator pay themselves before calculating profit?
For planning, include an allowance for your labour among the costs. Otherwise a long working day can appear profitable solely because the driver's time was valued at zero.
Can a lower rate with a return load beat a higher outbound rate?
Yes, if the return load is real and the combined revenue covers the additional distance, time and costs. Compare revenue and cost for the complete trip.