In this example, increasing round-trip travel hours from 1 to 1.1 changes the result from 133.3333 to 138.6667 . All other inputs stay the same.
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 remodeling contractor calculation, use a completed job sheet, supplier quotes and a crew schedule and a consistent definition of one remodel job.
- Materials: include the portion belonging to this remodel job or reporting period, and record where the value came from.
- Subcontract costs: include the portion belonging to this remodel job or reporting period, and record where the value came from.
- Scope changes: include the portion belonging to this remodel job 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.