Leased-on operators
Carrier percentage and settlement pay
If you're leased on, the broker's rate isn't your revenue. Your revenue is your percentage of it, minus deductions. Here's how the same load pays at different splits, what the percentage applies to, and how KRYSTAL counts it.
One load, three splits
The broker pays the carrier $2,000: $1,700 linehaul plus $300 fuel surcharge. The truck runs 800 loaded miles and 60 deadhead, 860 miles over two days. The owner-operator pays for fuel, maintenance and their own fixed costs:
- Fuel: 860 miles ÷ 6.8 mpg × $3.85 = $486.91
- Maintenance and tires at $0.22 a mile: $189.20
- Truck payment, insurance and other fixed costs at $95 a day for 2 days: $190.00
- Total costs: $866.11, before the operator pays themselves
| Operator's split | Carrier keeps | Operator revenue | Left after costs |
|---|---|---|---|
| 72% | $560.00 | $1,440.00 | $573.89 |
| 80% | $400.00 | $1,600.00 | $733.89 |
| 88% | $240.00 | $1,760.00 | $893.89 |
The costs are the same at every split; only the revenue changes. Each 8 points of split is worth $160 on this load. The operator's own pay still comes out of what's left.
Which revenue the percentage applies to
Read your lease agreement. It decides this, and leases differ:
- Percentage of the whole rate. The split applies to linehaul, fuel surcharge and accessorials alike. That is the table above.
- Fuel surcharge passed through. Some leases pay the operator the split on linehaul and 100% of the fuel surcharge. At 72% on this load that's $1,700 × 72% + $300 = $1,524, leaving $657.89, which is $84 more than the 72% row.
- Accessorials. Detention, layover, lumper reimbursement and stop pay may be split, passed through, or kept by the carrier. Check each one.
- Deductions. Settlements often take out insurance, trailer rental, ELD, IFTA administration, plates, escrow, fuel card and advance fees. These come out after the split.
How KRYSTAL counts it
In your operating profile, under Revenue Structure:
- Carrier / lease company percentage retained is the share the carrier keeps. On a 72% lease, enter 28, not 72.
- Dispatch fee and factoring fee are entered as percentages too.
- KRYSTAL applies every percentage to the load's full gross revenue: linehaul, fuel surcharge, accessorials, any separately paid return leg and stop pay. On the load above at 28%, that's $560. The one exception is below.
- Settlement deductions go under Carrier / Settlement Deductions and Transaction Deductions, entered per week, per month, per year or per load as they're charged. Weekly, monthly and yearly amounts are spread across the days a load takes; per-load amounts are charged on every load.
In the report, the carrier's share, percentage fees and per-load deductions appear together on the Operating Profile Costs line of the Cost Breakdown. Weekly, monthly and yearly deductions are part of the Fixed Overhead line. All of them are included in every profit figure. The sample report shows that line with a factoring fee.
Fuel surcharge passed through
If your lease pays you the fuel surcharge in full, answer No to "Does the carrier's percentage apply to fuel surcharge?" in Revenue Structure. KRYSTAL then takes the carrier's percentage from the rest of the revenue only. Dispatch and factoring fees are still worked out on the whole gross, because they're normally charged on the full invoice. Enter the fuel surcharge in its own field on each load so KRYSTAL can tell it apart.
The free cost per mile calculator has no split at all: it treats the whole offer as yours. To use it on a leased-on load, enter your share of the offer, not the broker's rate.
Questions to settle with your carrier
- Is the split on linehaul only, or on fuel surcharge and accessorials too?
- Which deductions come out of every settlement, and how much is each?
- Does the carrier pay for anything per mile, such as fuel discounts, trailer or insurance?
- When are settlements paid, and is there a fee for advances?
Worked through in more detail: how to calculate load profit after your carrier's percentage.
Put your split on every offer
Enter your lease terms once. Every analysis counts them.