More completed nearby visits can share driving time. Use a feasible route rather than assuming travel disappears.
Try this with your own numbersFormula and worked example
Travel allocation = route travel hours × hourly cost / completed visits
| Input | Example |
|---|---|
| Total route driving hours | 3 |
| Vehicle and driver hourly cost | 45 |
| Completed route visits | 8 |
| Calculated result | 16.875 per visit |
Choose reliable inputs
Compare route time, vehicle cost, delivery density and collection timing. For this courier service calculation, use completed route logs, fuel receipts and delivery records and a consistent definition of one delivery.
- Mileage: include the portion belonging to this delivery or reporting period, and record where the value came from.
- Dispatch time: include the portion belonging to this delivery or reporting period, and record where the value came from.
- Handling: include the portion belonging to this delivery or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
Why does route density affect visit profitability?
More completed nearby visits can share driving time. Use a feasible route rather than assuming travel disappears.
Hourly cost must include the costs you intend to count; on-site delivery labour is separate.
What if this input changes?
If total route driving hours rises by 10%, this example changes by 1.6875 per visit. This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.