# Revenue Ton Mile

## DEFINITION of 'Revenue Ton Mile'

A single ton of goods that is transported for one mile. Revenue ton miles are used to determine the total amount of freight that is shipped by a transportation company. Railroads determine revenue ton miles by multiplying the weight of paid tonnage by the total number of miles it has been transported.

## BREAKING DOWN 'Revenue Ton Mile'

Revenue ton miles are an important determinant of profit in the transportation industry. In order to come out ahead, a transportation firm must be able to make a profit per mile on the freight that is shipped. Revenue ton miles are similar conceptually to revenue passenger miles, the measure employed by the airlines.