Leasing On vs Running Own Authority: The Real Tradeoff
The Short Answer
Leased on: carrier keeps 12–25% of gross; you skip insurance shopping, IFTA, and dispatch. Own authority: you keep 100% but handle all compliance. Solo net take-home is often within $500–$1,500/mo of each other. Choose based on time and comfort with paperwork.
Most solo operators pick own-authority for the wrong reason (higher gross). Here is the honest math and where each path actually wins.
Lease on if: you dislike paperwork, want dispatch handled, and value time freedom. Get own authority if: you want maximum control, run direct-broker relationships, and are willing to spend 8–12 hours/week on business admin.
The Two Paths Side by Side
| Line | Leased-on (Landstar) | Own authority |
|---|---|---|
| Gross monthly | $20,000 | $20,000 |
| Carrier cut (18% avg) | -$3,600 | $0 |
| Fuel (same) | -$5,500 | -$5,500 |
| Truck payment | -$1,500 | -$1,500 |
| Insurance | $0 (in carrier fee) | -$1,000 |
| Permits/plates | $0 (in fee) | -$200 |
| Bookkeeping/dispatch | $0 (in fee) | -$300 |
| Net | $9,400 | $11,500 |
Where Lease-On Wins
- Time freedom — carrier handles ~10 hours/week of admin
- No insurance shopping year over year
- IFTA handled by carrier accounting
- Load board included
- Trailer often provided
- Legal/compliance support built in
Where Own Authority Wins
- Keep 100% of load rate
- Freedom to say no to loads
- Direct-broker relationships build over time
- Full flexibility on lanes, home time, equipment
- Business is a real asset (sellable)
The 'time is money' calculation
Own authority saves you $2,100/mo vs lease-on but adds 8-12 hours/week of admin. That's $40–$60/hour effective rate. If your driving time earns more per hour, lease-on might make more financial sense.
Top Lease-On Carriers
| Carrier | Split | Best for |
|---|---|---|
| Landstar | 75-88% to OO | Flatbed, van, high freedom |
| Mercer Transportation | 78% to OO | Flatbed, steel |
| Panther Premium Logistics | 70-80% to OO | Expedited, sprinter |
| Roehl | 70-75% to OO | OTR van |
| Prime Inc. | 70% to OO | Reefer, van |
How to Choose
Run own authority if you have 8+ hours/week for admin, $15K to start, and want to build a sellable business. Lease on if you value time, don't want to shop insurance, or plan to try trucking for 2–3 years before deciding on long-term direction.
Frequently Asked Questions
How much do Landstar owner-operators make?+
Solo Landstar OOs commonly net $6,000–$10,000/month after their carrier cut. Similar range to own-authority operators when you account for time savings.
Can I switch from leased to own authority?+
Yes — many operators do after 12–24 months. You've built experience, broker contacts, and cash to fund the transition.
What percentage do carriers take from lease-on OOs?+
12–25%. Landstar and Mercer are on the lower end (75-88% to driver). Larger van fleets like Schneider trend higher take rates.