Methodology
Rush Fee Pricing Planner methodology
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
minimumRushSurcharge = incremental rush cost รท (1 โ 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
overtimeHours = standard hours โ rush hoursWhere
- standardHours
- Standard hours (hours/project)Source: Business record
- rushHours
- Rush hours (hours/project)Source: User assumption
- overtimeHours
- Overtime Hours (hours/project)Source: Calculated output
incrementalRushCost = overtime hours ร incremental cost + displaced contributionWhere
- 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
minimumRushFee = standard fee + minimum rush surchargeWhere
- 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 = minimum rush surcharge รท standard feeWhere
- 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
minimumRushSurcharge
minimumRushSurcharge = incremental rush cost รท (1 โ 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
overtimeHours
overtimeHours = standard hours โ 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
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
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
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 โฅ 0 currency units/projectโ A lower value is rejected before calculation.- Standard fee maximum
standardFee โค 10,000,000 currency units/projectโ A higher value is rejected before calculation.- Standard hours minimum
standardHours โฅ 0 hours/projectโ A lower value is rejected before calculation.- Standard hours maximum
standardHours โค 10,000,000 hours/projectโ A higher value is rejected before calculation.- Rush hours minimum
rushHours โฅ 0 hours/projectโ A lower value is rejected before calculation.- Rush hours maximum
rushHours โค 10,000,000 hours/projectโ A higher value is rejected before calculation.- Incremental cost per compressed hour minimum
overtimeCostPerHour โฅ 0 currency units/hourโ A lower value is rejected before calculation.- Incremental cost per compressed hour maximum
overtimeCostPerHour โค 10,000,000 currency units/hourโ A higher value is rejected before calculation.- Displaced contribution minimum
displacedContribution โฅ 0 currency units/projectโ A lower value is rejected before calculation.- Displaced contribution maximum
displacedContribution โค 10,000,000 currency units/projectโ A higher value is rejected before calculation.- Target margin minimum
targetMargin โฅ 0 proportion of rush fee retained as contributionโ A lower value is rejected before calculation.- Target margin maximum
targetMargin โค 0.99 proportion of rush fee retained as contributionโ 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
- : Initial public release of the planner and methodology after pre-launch calculation, content, source and interaction review.
Related reading
Guides to interpret the decision and its assumptions.
- How to Price Rush Work Without Damaging Margin
Check capacity, displaced contribution, scope and delivery risk before deciding whether and how to quote urgent work.
Read guide