Start with agreed freight
Record the revenue earned for the trip, including agreed additional charges. A customer advance is a receipt against that amount, not extra revenue.
Subtract the costs of this journey
Include diesel, tolls, loading, unloading, driver allowances and other costs caused by the trip. Freight less these direct costs is the trip contribution.
Example: a ₹35,000 trip
With ₹12,000 diesel, ₹2,500 tolls, ₹3,000 driver costs and ₹1,500 other direct costs, contribution is ₹16,000. If you allocate ₹4,000 of overheads, the indicative result becomes ₹12,000.
Do not forget the vehicle overheads
Insurance, depreciation, office costs and relevant finance costs can sit outside the trip expense sheet. Allocate them consistently when comparing the wider business result.
Profit is different from cash
An unpaid invoice can be revenue even though money has not arrived. A customer advance can put cash in the bank before the trip is complete. Review both contribution and outstanding balances.
Use the same basis each time
Compare similar routes using consistent cost categories and a consistent treatment of taxes. The calculator is an estimate, not a substitute for reviewed accounts.
Start with one completed trip and check whether every amount and supporting record can be traced.
Try the trip calculator ↗