Tools · For operators
Contract viability calculator
Most contracts are accepted on instinct and a headline rate. This tests the offer against the true cost of running the route, including the costs that arrive later.
What the contract is really worth
Contribution per day
£-102.34
Margin
-87.2%
Break-even stops per day
206 stops
Rate needed for a 15% margin
£2.42
Revenue per day
£117.37
True cost per day
£219.71
Contribution per week
£-614.03
Downside: contribution if volume falls 15%
£-119.94
Volume sensitivity
Daily contribution if delivered volume moves against the plan.
-20% volume
£-126
-10% volume
£-114
+10% volume
£-91
+20% volume
£-79
How this is calculated
Daily revenue = rate × stops × (1 − failed-delivery rate). Daily cost = driver pay uplifted by the cover allowance + vehicle + fuel + other + (insurance and administration spread over the days worked) + (penalty exposure × 12 ÷ 52 ÷ days).
Contribution = revenue − cost. Break-even stops = daily cost ÷ paid rate per stop, rounded up. Required rate = the rate at which the chosen target margin is achieved at the entered volume. The downside scenario reduces delivered volume by 15% with costs unchanged, because most route costs do not fall when volume does.
This calculator provides general information based on the figures you enter. It is not financial, tax or professional advice, and results depend entirely on your inputs. No account is required: when you use this tool without signing in, the information you enter remains in your browser and is not saved by Wentworth Ridge. If you sign in and choose to save, the selected information is securely transmitted to and stored in your account.
If the result sits close to break-even or the downside goes negative, the decision usually deserves more than a calculator. A structured contract review exists for exactly that case.
No account is required, and nothing is saved by Wentworth Ridge unless you sign in and choose to save. To keep scenarios and compare them later, sign in (free, email link, no password).