Methodology
Travel Charge Recovery 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
travelCostExTax = travel hours ร loaded labour rate + distance ร vehicle cost + fixed travel costWhere
- travelHours
- Travel hours (hours/job)Source: Business record
- loadedLabourRateExTax
- Loaded labour cost per hour (currency units/hour, ex tax)Source: Business record
- distanceKm
- Travel distance (consistent distance units/job)Source: Business record
- vehicleCostPerKmExTax
- Vehicle cost per distance unit (currency units/distance unit, ex tax)Source: Business record
- fixedTravelCostExTax
- Fixed travel cost (currency units/job, ex tax)Source: Business record
- travelCostExTax
- Travel cost (currency units, ex tax)Source: Calculated output
requiredTravelChargeExTax = travel cost รท (1 โ target margin)Where
- targetMargin
- Target travel margin (decimal fraction of travel-charge revenue)Source: User assumption
- travelCostExTax
- Travel cost (currency units, ex tax)Source: Calculated output
- requiredTravelChargeExTax
- Required travel charge (currency units, ex tax)Source: Calculated output
contributionExTax = required travel charge โ travel costWhere
- travelCostExTax
- Travel cost (currency units, ex tax)Source: Calculated output
- requiredTravelChargeExTax
- Required travel charge (currency units, ex tax)Source: Calculated output
- contributionExTax
- Travel contribution (currency units, ex tax)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 rows below come directly from the exact engine using the visible default fixture.
- Travel hours
- 2 hours/job
- Loaded labour cost per hour
- 60 currency units/hour, ex tax
- Travel distance
- 100 consistent distance units/job
- Vehicle cost per distance unit
- 0.8 currency units/distance unit, ex tax
- Fixed travel cost
- 0 currency units/job, ex tax
- Target travel margin
- 0.2 decimal fraction of travel-charge revenue
Calculation and outputs
Travel cost
travelCostExTax = travel hours ร loaded labour rate + distance ร vehicle cost + fixed travel cost- Travel hours
- 2 hours/job
- Loaded labour cost per hour
- 60 currency units/hour, ex tax
- Travel distance
- 100 consistent distance units/job
- Vehicle cost per distance unit
- 0.8 currency units/distance unit, ex tax
- Fixed travel cost
- 0 currency units/job, ex tax
- Target travel margin
- 0.2 decimal fraction of travel-charge revenue
- Required travel charge
- 250 currency units, ex tax
- Travel contribution
- 50 currency units, ex tax
Engine result: 200 currency units, ex tax
Required travel charge
requiredTravelChargeExTax = travel cost รท (1 โ target margin)- Travel hours
- 2 hours/job
- Loaded labour cost per hour
- 60 currency units/hour, ex tax
- Travel distance
- 100 consistent distance units/job
- Vehicle cost per distance unit
- 0.8 currency units/distance unit, ex tax
- Fixed travel cost
- 0 currency units/job, ex tax
- Target travel margin
- 0.2 decimal fraction of travel-charge revenue
- Travel cost
- 200 currency units, ex tax
- Travel contribution
- 50 currency units, ex tax
Engine result: 250 currency units, ex tax
Travel contribution
contributionExTax = required travel charge โ travel cost- Travel hours
- 2 hours/job
- Loaded labour cost per hour
- 60 currency units/hour, ex tax
- Travel distance
- 100 consistent distance units/job
- Vehicle cost per distance unit
- 0.8 currency units/distance unit, ex tax
- Fixed travel cost
- 0 currency units/job, ex tax
- Target travel margin
- 0.2 decimal fraction of travel-charge revenue
- Travel cost
- 200 currency units, ex tax
- Required travel charge
- 250 currency units, ex tax
Engine result: 50 currency units, ex tax
Example
The rows below come directly from the exact engine using the visible default fixture.
- Travel cost
- 200.00
- Required travel charge
- 250.00
- Travel contribution
- 50.00
The exact engine-derived outputs are shown in the labelled rows below.
Interpretation
Keep travel time, distance and call-out recovery separate enough to explain the customer charge.
3. Validation and boundary checks
- All values must be finite and remain inside the visible input boundaries.
- All money values use one consistent ex-tax basis and period.
- Rates must remain inside their engine-owned boundaries.
- Travel hours minimum
travelHours โฅ 0 hours/jobโ A lower value is rejected before calculation.- Travel hours maximum
travelHours โค 100,000,000 hours/jobโ A higher value is rejected before calculation.- Loaded labour cost per hour minimum
loadedLabourRateExTax โฅ 0 currency units/hour, ex taxโ A lower value is rejected before calculation.- Loaded labour cost per hour maximum
loadedLabourRateExTax โค 10,000,000 currency units/hour, ex taxโ A higher value is rejected before calculation.- Travel distance minimum
distanceKm โฅ 0 consistent distance units/jobโ A lower value is rejected before calculation.- Travel distance maximum
distanceKm โค 100,000,000 consistent distance units/jobโ A higher value is rejected before calculation.- Vehicle cost per distance unit minimum
vehicleCostPerKmExTax โฅ 0 currency units/distance unit, ex taxโ A lower value is rejected before calculation.- Vehicle cost per distance unit maximum
vehicleCostPerKmExTax โค 10,000,000 currency units/distance unit, ex taxโ A higher value is rejected before calculation.- Fixed travel cost minimum
fixedTravelCostExTax โฅ 0 currency units/job, ex taxโ A lower value is rejected before calculation.- Fixed travel cost maximum
fixedTravelCostExTax โค 10,000,000 currency units/job, ex taxโ A higher value is rejected before calculation.- Target travel margin minimum
targetMargin โฅ 0 decimal fraction of travel-charge revenueโ A lower value is rejected before calculation.- Target travel margin maximum
targetMargin โค 0.99 decimal fraction of travel-charge revenueโ A higher value is rejected before calculation.
4. Assumptions and source classification
- All hours, utilisation, costs, rates and recovery targets are supplied by the user.
- Money values use one consistent ex-tax basis.
- No provider fee, jurisdiction, benchmark or demand forecast is embedded.
- Raw engine precision is retained until display.
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
- Results depend on the completeness and classification of the entered business records.
- The planner does not forecast demand, utilisation, supplier terms or project outcomes.
- This is educational business decision support rather than accounting, tax, legal or financial advice.
- The entered labour, distance and vehicle costs are internal commercial assumptions; the planner does not apply a statutory mileage, reimbursement, award or tax rate.
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.
- Travel Radius and Route Density
Compare service-radius choices using travel recovery, jobs per route, capacity and customer boundaries.
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