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Methodology

Rush Fee Pricing Planner methodology

Recover the incremental economics of compressed delivery.

Educational only: Business decision support, not accounting, tax or legal advice.

Privacy: Calculations run locally; Margin101 does not receive your commercial inputs.

Update policy: Reviewed when formulas or official dependencies change.

Scope: Market-neutral small-business planning using your own assumptions.

1. Formulas and units

Minimum Rush Surcharge
minimumRushSurcharge = incremental rush cost รท (1 โˆ’ target margin)

Where

targetMargin
Target margin (proportion of rush fee retained as contribution)Source: User decision
minimumRushSurcharge
Minimum Rush Surcharge (currency units/project)Source: Calculated output
incrementalRushCost
Incremental Rush Cost (currency units/project)Source: Calculated output
Overtime Hours
overtimeHours = standard hours โˆ’ rush hours

Where

standardHours
Standard hours (hours/project)Source: Business record
rushHours
Rush hours (hours/project)Source: User assumption
overtimeHours
Overtime Hours (hours/project)Source: Calculated output
Incremental Rush Cost
incrementalRushCost = overtime hours ร— incremental cost + displaced contribution

Where

rushHours
Rush hours (hours/project)Source: User assumption
displacedContribution
Displaced contribution (currency units/project)Source: User assumption
overtimeHours
Overtime Hours (hours/project)Source: Calculated output
incrementalRushCost
Incremental Rush Cost (currency units/project)Source: Calculated output
Minimum Rush Fee
minimumRushFee = standard fee + minimum rush surcharge

Where

standardFee
Standard fee (currency units/project)Source: Business record
minimumRushSurcharge
Minimum Rush Surcharge (currency units/project)Source: Calculated output
minimumRushFee
Minimum Rush Fee (currency units/project)Source: Calculated output
Surcharge Rate
surchargeRate = minimum rush surcharge รท standard fee

Where

standardFee
Standard fee (currency units/project)Source: Business record
minimumRushSurcharge
Minimum Rush Surcharge (currency units/project)Source: Calculated output
minimumRushFee
Minimum Rush Fee (currency units/project)Source: Calculated output
surchargeRate
Surcharge Rate (decimal rate)Source: Calculated output

Money inputs and outputs use the currency selected in the scenario without changing the canonical methodology. Rates, margins, utilisation and buffers are entered as percentages and converted to decimal values for calculation.

2. Worked example

Input assumptions

The worked rows are rendered from the registered engine and visible default fixture.

Standard fee
5,000 currency units/project
Standard hours
40 hours/project
Rush hours
30 hours/project
Incremental cost per compressed hour
55 currency units/hour
Displaced contribution
350 currency units/project
Target margin
0.25 proportion of rush fee retained as contribution

Calculation and outputs

  1. minimumRushSurcharge

    minimumRushSurcharge = incremental rush cost รท (1 โˆ’ target margin)
    Rush hours
    30 hours/project
    Incremental cost per compressed hour
    55 currency units/hour
    Target margin
    0.25 proportion of rush fee retained as contribution
    incrementalRushCost
    900 declared output unit
    minimumRushFee
    6,200 declared output unit

    Engine result: 1,200

  2. overtimeHours

    overtimeHours = standard hours โˆ’ rush hours
    Standard fee
    5,000 currency units/project
    Standard hours
    40 hours/project
    Rush hours
    30 hours/project
    minimumRushSurcharge
    1,200 declared output unit
    incrementalRushCost
    900 declared output unit
    minimumRushFee
    6,200 declared output unit

    Engine result: 10

  3. incrementalRushCost

    incrementalRushCost = overtime hours ร— incremental cost + displaced contribution
    Standard hours
    40 hours/project
    Rush hours
    30 hours/project
    Incremental cost per compressed hour
    55 currency units/hour
    Displaced contribution
    350 currency units/project
    overtimeHours
    10 declared output unit

    Engine result: 900

  4. minimumRushFee

    minimumRushFee = standard fee + minimum rush surcharge
    Standard fee
    5,000 currency units/project
    Standard hours
    40 hours/project
    Rush hours
    30 hours/project
    minimumRushSurcharge
    1,200 declared output unit
    incrementalRushCost
    900 declared output unit
    surchargeRate
    0.24 declared output unit

    Engine result: 6,200

  5. surchargeRate

    surchargeRate = minimum rush surcharge รท standard fee
    Standard fee
    5,000 currency units/project
    Standard hours
    40 hours/project
    Rush hours
    30 hours/project
    minimumRushSurcharge
    1,200 declared output unit
    incrementalRushCost
    900 declared output unit
    minimumRushFee
    6,200 declared output unit

    Engine result: 0.24

Example

The worked rows are rendered from the registered engine and visible default fixture.

Overtime Hours
10 hours/project
Incremental Rush Cost
900 currency units/project
Minimum Rush Surcharge
1,200 currency units/project
Minimum Rush Fee
6,200 currency units/project
Surcharge Rate
24%

The exact engine-derived outputs are shown in the labelled rows below.

Interpretation

The rush fee pricing result uses only the entered commercial assumptions.

3. Validation and boundary checks

  • Inputs must be finite and remain within the visible boundaries.
  • Rates are decimal values and all monetary inputs use one consistent currency and period.
  • Whole operational capacity is rounded only where the engine explicitly applies floor or ceiling.
Standard fee minimum
standardFee โ‰ฅ 0 currency units/project โ€” A lower value is rejected before calculation.
Standard fee maximum
standardFee โ‰ค 10,000,000 currency units/project โ€” A higher value is rejected before calculation.
Standard hours minimum
standardHours โ‰ฅ 0 hours/project โ€” A lower value is rejected before calculation.
Standard hours maximum
standardHours โ‰ค 10,000,000 hours/project โ€” A higher value is rejected before calculation.
Rush hours minimum
rushHours โ‰ฅ 0 hours/project โ€” A lower value is rejected before calculation.
Rush hours maximum
rushHours โ‰ค 10,000,000 hours/project โ€” A higher value is rejected before calculation.
Incremental cost per compressed hour minimum
overtimeCostPerHour โ‰ฅ 0 currency units/hour โ€” A lower value is rejected before calculation.
Incremental cost per compressed hour maximum
overtimeCostPerHour โ‰ค 10,000,000 currency units/hour โ€” A higher value is rejected before calculation.
Displaced contribution minimum
displacedContribution โ‰ฅ 0 currency units/project โ€” A lower value is rejected before calculation.
Displaced contribution maximum
displacedContribution โ‰ค 10,000,000 currency units/project โ€” A higher value is rejected before calculation.
Target margin minimum
targetMargin โ‰ฅ 0 proportion of rush fee retained as contribution โ€” A lower value is rejected before calculation.
Target margin maximum
targetMargin โ‰ค 0.99 proportion of rush fee retained as contribution โ€” A higher value is rejected before calculation.

4. Assumptions and source classification

  • All costs, prices, hours, probabilities and volumes are user-supplied; no market benchmark is inferred.
  • Tax is outside these neutral commercial comparisons.
  • The engine retains full precision; formatting never feeds back into calculation.

This planner has no current policy-data dependency. Its commercial assumptions are user supplied. Registered family-level regression suites exercise the shared business-logic engine and worked-result reconciliation.

5. Limitations

  • The model does not predict demand, delivery performance, contract enforceability or customer behaviour.
  • It does not replace accounting, tax, legal or financial advice.

This is educational decision support, not tax, accounting, legal or financial advice. Check the treatment of your actual transactions under the rules that apply to your business and seek qualified advice where appropriate.

6. Update and evidence policy

Registered family-level suites test formula invariants and example reconciliation; the release ledger records that coverage without claiming a separate oracle for every line of public copy. There is no official threshold or benchmark to refresh for this planner. Commercial inputs remain user-supplied because they vary by business and contract.

Change history

  1. : Initial public release of the planner and methodology after pre-launch calculation, content, source and interaction review.

Guides to interpret the decision and its assumptions.

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