What is Percentage Pay for Truck Drivers? How it Works and What to Compare

Percentage pay means a truck driver earns a set share of the revenue from a load. For example, if a load pays $4,000 in eligible revenue and your pay rate is 70 percent, you earn $2,800 before deductions and expenses.

But a higher percentage doesn't always mean more money in your pocket.

Some trucking companies cover costs like trailer repairs, insurance, and permits. Others pass more of those costs on to drivers. That's why it's important to look beyond the percentage when comparing pay offers.

At Anderson Trucking Service (ATS), independent contractors are paid through percentage-pay contracts. In this article, we'll explain how percentage pay works, how it compares to cents per mile (CPM), and what to ask before choosing a pay program.

Here's what you need to know:

• Percentage pay gives you a share of the eligible revenue from each load.
• Your actual earnings depend on your pay percentage, the freight you haul, and the expenses you're responsible for.
• A lower percentage with fewer deductions may leave you with more money than a higher percentage with more expenses.

What Is Percentage Pay in Trucking?

Percentage pay is a pay structure where a trucking company pays a driver a percentage of the revenue earned from hauling a load. For example, a carrier might offer 60, 70, or 80 percent of the linehaul revenue.

Linehaul revenue is the amount charged to move the freight, apart from charges like fuel surcharges and other accessorial fees. If a company pays you 70 percent of the linehaul, it keeps the other 30 percent. That money helps cover the costs of running the business, such as insurance, equipment, permits, and support staff.

However, every carrier handles percentage pay a little differently. Some pay a percentage of linehaul revenue only. Others may include certain accessorial charges or pay those charges separately. That's why it's important to understand what your percentage includes.

How Do You Calculate Percentage Pay for Truck Drivers?

To calculate percentage pay, multiply the eligible load revenue by your pay percentage.

Eligible load revenue × Pay percentage = Gross percentage pay

Let's say you're offered 70 percent of a load that pays $4,000 in eligible revenue.

You would earn $2,800 before any deductions or expenses you're responsible for.

If another carrier offered 80 percent on the same load, your gross percentage pay would be $3,200. That sounds better at first. But what if the second carrier charges you more for trailer maintenance, insurance, or permits? Those added costs could reduce how much money you keep.

The takeaway: Don't compare percentages alone. Compare what you're likely to earn after the costs you're responsible for.

Different Types of Percentage Pay

There are different ways carriers structure percentage pay. Two common approaches are straight percentage pay and split percentage pay.

• Straight percentage pay means the carrier pays a set percentage of the eligible revenue covered by the contract.
  
  

• Split percentage pay means the carrier uses more than one method to calculate your pay. You might receive a percentage of the linehaul and a flat rate or CPM payment for certain other items.

At ATS, independent contractors have percentage-pay contracts. However, depending on the fleet you drive in, you may receive a CPM payout for fuel instead of a percentage. That means your settlement could show both percentage pay and mileage-based pay.

Because every carrier structures its contracts differently, two offers with the same percentage may not pay the same amount.

Percentage Pay vs. CPM: Which Is Better for Truck Drivers?

Neither pay method is always better. The right choice depends on the freight you haul, the miles you drive, the rates your carrier earns, and the expenses you pay.

With percentage pay, your base pay is tied to eligible load revenue. With cents-per-mile (CPM) pay, your base pay is tied to the number of paid miles you drive.

Here's how they compare:

For example, say a driver earns 70 percent of a load with $4,000 in eligible revenue. Their gross percentage pay would be $2,800.

A driver earning 70 cents per mile for 2,000 paid miles would earn $1,400 in base mileage pay.

These examples show how the math works. They aren't equal job offers, and they don't account for differences in expenses, time, freight, or additional pay. Before choosing between CPM and percentage pay, ask how much you can realistically expect to earn over a typical week.

If you want to learn more about other pay methods, read our guide to how truck drivers get paid.

How Do Trucking Companies Set Percentage Pay?

Percentage pay depends largely on how much it costs a trucking company to operate. Like any business, carriers have expenses. They need to pay employees, maintain equipment, insure loads, and keep freight moving.

When a carrier sets its pay percentage, it must account for those costs while keeping the business stable.

Equipment and Maintenance Costs

Trucking companies must consider the cost of maintaining their trailers and other equipment. Some trailers have complex systems that require specialized maintenance. Repairs, tires, and other equipment costs can add up.

A carrier that covers these expenses may offer a lower pay percentage than one that expects drivers to pay for them.

Insurance and Permit Costs

Carriers also need insurance for their equipment and the freight they haul, and certain loads require special permits. Oversized and heavy haul freight may involve additional requirements and costs.

Some carriers cover these expenses. Others may charge drivers for certain items.

It's important to know who pays for what before signing a contract.

Business and Support Costs

Carriers also have employees who help plan loads, support drivers, manage settlements, and keep the business running.

At ATS, our office teams support drivers and contractors in the field. We also operate as a debt-free company, which means we don't have to account for bank loan payments in the same way a carrier with that debt might. The goal is to maintain a stable business that can continue serving customers and supporting drivers.

Why does this matter to you?

A carrier that covers more operating costs may offer a lower percentage. A carrier that passes more costs to drivers may offer a higher one.

Neither arrangement is automatically better. What matters is how the full pay package affects your earnings.

How Does Percentage Pay Work at ATS?

At ATS, percentage pay for independent contractors starts at 70 percent across our van, flatbed, heavy haul, and Department of Defense divisions.

New contractors receive 70 percent of the linehaul and accessorials. Pay increases based on mileage milestones and the terms of the contract for their division. That means your pay percentage may grow as you reach certain milestones.

We also cover several costs that contractors may have to pay themselves at other carriers.

What Costs Does ATS Cover?

Across our divisions, ATS covers:

• Trailer maintenance and insurance
• Booking fees
• Planning fees
• Load insurance
• Operating licenses or permits
• Over-dimensional and heavy haul permits

There is a small weekly trailer fee. However, contractors aren't responsible for paying to repair an ATS trailer if a tire blows or a brake line fails.

ATS also covers a range of legal permits needed to haul freight. Some carriers require drivers to pay start-up fees or make down payments toward permits. ATS takes on those costs.

To put the cost of licensing into perspective, fully licensing a vehicle can cost upward of $5,500 per year.

Contractors are responsible for minor weekly fees for their communication device, transponder, and plating.

These details matter because they affect how much money you keep after your settlement deductions. Before joining any carrier, ask for a clear explanation of its current pay terms and fees.

How to Compare Two Percentage-Pay Trucking Offers

Let's say you're comparing two carriers.

Carrier A offers 80 percent of the linehaul. Carrier B offers 70 percent. At first, Carrier A looks like the better choice. But what happens when you account for the expenses each carrier passes on to you?

Here's a simple example using the same weekly eligible revenue.

These numbers are for illustration only. They do not represent actual ATS earnings, rates, or deductions. Other costs, including fuel, truck payments, maintenance, and taxes, may also apply.

In this example, Carrier B offers a lower percentage, but leaves the driver with $150 more after the listed deductions.

That's why you should compare more than the percentage on a recruiting advertisement. Ask each carrier for a sample settlement. Then look at what you earn, what you pay, and what is left.

Questions to Ask Before Accepting Percentage Pay

Before you sign a contract, make sure you understand how your pay works. Ask these questions:

• What revenue is my percentage based on?
• Do I receive percentage pay for accessorial charges?
• How is detention pay handled?
• Do I receive a fuel surcharge, and how is it calculated?
• Am I responsible for trailer maintenance or insurance?
• What permits, licenses, and equipment fees will I pay?
• Are there weekly deductions?
• Can I review a sample settlement?
• How often will I be paid?
• Can my percentage increase over time?

Get the answers in writing. A clear contract and sample settlement can help you avoid surprises later.

Is Percentage Pay Right for You?

Percentage pay may appeal to drivers who want their earnings tied to the revenue that their freight generates, but it isn't the best fit for everyone.

If you prefer mileage-based pay, you may feel more comfortable with a CPM structure.

If you're an independent contractor, you'll also need to think about your operating costs, the freight available to you, and how changes in load revenue could affect your earnings. Ask yourself:

• Am I comfortable with pay that can change based on freight revenue?
• Do I understand the expenses I'm responsible for?
• Can I estimate my weekly earnings using realistic load and cost information?
• Does the carrier offer the freight, support, and opportunities I want?

The right pay program should fit both your financial goals and the way you want to work.

Frequently Asked Questions About Percentage Pay

Is percentage pay better than cents per mile?

Not always. Percentage pay is based on eligible load revenue, while CPM pay is based on paid miles. The better choice depends on the freight, rates, miles, expenses, and additional pay available to you.

Does a higher percentage mean more take-home pay?

No. A carrier offering a higher percentage may charge more fees or pass more operating costs to drivers. Compare expected earnings after expenses, not just the advertised percentage.

Does percentage pay include fuel surcharges and accessorials?

It depends on the carrier's contract. Some carriers include certain charges in percentage pay. Others pay them separately. Ask how each type of revenue appears on your settlement.

Can owner-operators earn percentage pay?

Yes. Some carriers offer percentage-pay contracts to owner-operators and other independent contractors. The percentage and the costs drivers must cover vary by carrier.

What should I ask a recruiter about percentage pay?

Ask what revenue counts toward your pay, which expenses you're responsible for, how deductions work, and whether you can review a sample settlement. You should also ask about freight opportunities and how your pay could change over time.

Learn More About Percentage Pay at ATS

Percentage pay can be a good option for drivers who understand how it works and what costs come with it. The key is to look beyond the advertised percentage.

A higher rate doesn't always mean more money in your pocket. The freight you haul, the expenses you pay, and the support your carrier provides all affect your earnings.

At ATS, we aim to offer a percentage-pay structure that balances earning opportunities with support and fewer out-of-pocket operating expenses.

If you're considering an independent-contractor opportunity, take time to compare the details and ask questions. Explore ATS pay programs to learn more about how our compensation works and whether an ATS opportunity could be a good fit for you.