In this example, increasing revenue per repair visit from 800 to 880 changes the result from 325 to 405 . All other inputs stay the same.
Try this with your own numbersFormula and worked example
Contribution = price − materials − hours × labour cost − other variable cost
| Input | Example |
|---|---|
| Revenue per repair visit | 800 |
| Materials or purchased services | 250 |
| Delivery labour hours | 5 |
| Burdened hourly labour cost | 35 |
| Other variable cost | 50 |
| Calculated result | 325 |
Choose reliable inputs
Separate parts, technician time and bay availability for each repair order. For this mobile mechanic calculation, use repair orders, parts invoices and technician time logs and a consistent definition of one repair visit.
- Parts: include the portion belonging to this repair visit or reporting period, and record where the value came from.
- Travel: include the portion belonging to this repair visit or reporting period, and record where the value came from.
- Diagnostic time: include the portion belonging to this repair visit 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.
Is contribution the same as net profit?
Contribution still needs to cover rent, management, software, and other fixed costs before there is net profit.
Include variable costs only here; fixed overhead is not deducted.
What if this input changes?
If revenue per repair visit rises by 10%, this example changes by 80 . 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.