Enter a weighted increase across the costs included. This is a target-margin calculation, not a demand forecast.
Try this with your own numbersFormula and worked example
New price = cost × (1 + increase) / (1 − margin)
| Input | Example |
|---|---|
| Current assigned cost | 600 |
| Cost increase | 8 % |
| Required margin | 30 % |
| Calculated result | 925.7143 |
Choose reliable inputs
Compare route time, vehicle cost, delivery density and collection timing. For this local delivery calculation, use completed route logs, fuel receipts and delivery records and a consistent definition of one delivery.
- Driver hours: include the portion belonging to this delivery or reporting period, and record where the value came from.
- Vehicle cost: include the portion belonging to this delivery or reporting period, and record where the value came from.
- Route density: 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.
How much should price change when costs rise?
Enter a weighted increase across the costs included. This is a target-margin calculation, not a demand forecast.
What if this input changes?
If current assigned cost rises by 10%, this example changes by 92.5714 . 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.