With the illustrative inputs below, the result is 133.3333 .
Try this with your own numbersFormula and worked example
Minimum charge = ((travel + work) × hourly cost + travel cost) / (1 − margin)
| Input | Example |
|---|---|
| Round-trip travel hours | 1 |
| Minimum delivery hours | 1 |
| Burdened hourly cost | 40 |
| Travel and setup cost | 20 |
| Target margin | 25 % |
| Calculated result | 133.3333 |
Choose reliable inputs
Plan materials, travel and crew time before committing to a price. For this moving service calculation, use a completed job sheet, supplier quotes and a crew schedule and a consistent definition of one move.
- Crew hours: include the portion belonging to this move or reporting period, and record where the value came from.
- Mileage: include the portion belonging to this move or reporting period, and record where the value came from.
- Packing materials: include the portion belonging to this move 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 can a short visit still need a minimum charge?
Travel and setup happen even when the on-site task is short. The minimum charge allocates these unavoidable costs.
Time costs and vehicle costs must be separate to avoid counting the same expense twice.
What if this input changes?
If round-trip travel hours rises by 10%, this example changes by 5.3333 . 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.