Understanding how your margin works is the core of a profitable brokerage. Learn how the shipper-to-carrier spread works, what a healthy margin looks like, and how to price loads to protect your profit.
Your margin is the spread between what the shipper pays you and what you pay the carrier. You quote the shipper a rate, you negotiate a lower rate with the carrier, and the difference is your gross margin. Most brokers target 12-15% per load.
| Freight Type | Typical Margin % | Notes |
|---|---|---|
| Standard dry van | 10-15% | High competition, most common lanes |
| Reefer / temp-controlled | 12-18% | Tighter capacity, fewer brokers |
| Flatbed | 13-18% | Securement knowledge adds value |
| Heavy haul / oversized | 15-25% | Permits, route planning, specialized equipment |
| Expedited / hot shot | 18-25% | Urgency and same-day coordination command premiums |
For more on pricing and margin strategy, see our detailed broker margins guide.
Brokers think about margin two ways: as a percentage of the shipper rate, or as a flat dollar spread per load. Here's when each lens makes sense:
Use this formula to estimate your monthly gross margin:
Monthly Gross Margin = Loads/Week × 4.3 × Avg Margin per Load
When you quote a shipper, you're selling reliability, not the lowest price. Here's a proven framework:
Need a professional contract? Download our broker-carrier agreement template.
Our course includes complete rate negotiation scripts, contract templates, and margin strategies used by top brokers.
Get the Complete CourseMost brokers target a 12-15% gross margin per load, which is roughly $250-$350 on an average dry van load. Margin is the spread between what the shipper pays you and what you pay the carrier - not a per-mile fee.
No. A dispatcher works for a carrier and charges them a 5-10% commission on the carrier's gross. A broker sits between the shipper and the carrier: the shipper pays the broker, the broker pays the carrier, and the broker keeps the spread in between.
The industry standard is 12-15% gross margin per load. New brokers sometimes accept 8-10% to win first accounts, while specialized freight like heavy haul or expedited can support 18-25% or more.
On a typical $2,400 dry van load at a 14% margin, a broker grosses about $336. Cover 15 loads a week at that margin and that's roughly $18,000/month in gross margin before expenses.