Calculate internal cost
Complete the route, country rates, tolls, driver time and fixed expenses before applying any commercial uplift.
Freight pricing and profitability
Transport Margin Calculator
Turn the internal cost of a transport route into a customer price and understand the difference between markup and margin. Keep route cost, commercial uplift and selling price visible as separate values.
Internal cost
Markup
Gross margin
Client price
Pricing workflow
How to calculate freight margin and selling price
A profitable quotation starts with a complete internal route cost. The commercial uplift is then added to cost, while the resulting gross margin is measured against the final selling price.
Choose the pricing method
Apply a percentage uplift or enter the intended selling price, depending on the company quotation process.
Review the result
Compare profit amount, markup and margin so the price is not accepted with a misunderstood percentage.
Margin and markup formulas
Profit = selling price − cost; markup = profit ÷ cost × 100; margin = profit ÷ selling price × 100
Commercial inputs
What belongs in a transport margin calculation?
The percentage is only meaningful when the underlying route cost is complete and the company knows whether it is using markup on cost or margin on revenue.
Internal route cost
Use distance, fuel, tolls, driver time and route-specific expenses to establish the cost base.
Commercial uplift
Add the percentage or amount applied on top of internal cost when creating the quotation.
Selling price
Review the final amount offered to the customer after all included costs and uplift are applied.
Gross profit amount
See the monetary difference between the selling price and the internal transport cost.
Markup on cost
Measure profit as a percentage of the internal cost base.
Margin on revenue
Measure profit as a percentage of the final customer price.
Worked example
Example transport margin calculation
Assume the completed internal route cost is €1,000. Applying a 15% markup on cost adds €150 and produces a customer price of €1,150.
The gross margin is not 15%. Because margin is measured against the selling price, the same quotation produces a margin of approximately 13.04%.
| Pricing value | Example result |
|---|---|
| Internal transport cost | €1,000.00 |
| Markup on cost | 15.00% |
| Gross profit amount | €150.00 |
| Customer price | €1,150.00 |
| Gross margin on price | 13.04% |
This is a simplified gross calculation before taxes, commissions, claims, financing costs and other company overheads.
Commercial advantages
Why separate route cost, markup and margin?
Prevent percentage confusion
A 15% markup does not produce a 15% margin, so both figures should be visible when approving the price.
Protect the cost base
Apply margin only after tolls, empty kilometres, driver time and other included expenses are accounted for.
Compare quotations consistently
Review routes using the same pricing method instead of mixing manual calculations and different percentage definitions.
Keep price decisions transparent
Show internal cost, profit amount and customer price as separate values before sending the quotation.
Frequently asked questions
Transport margin calculator FAQ
What is the difference between markup and margin?
Markup measures profit against cost, while margin measures profit against selling price. The percentages are therefore different for the same quotation.
How do I calculate the selling price from markup?
Multiply the internal cost by one plus the markup percentage. For example, €1,000 with a 15% markup becomes €1,150.
How do I calculate selling price from a target margin?
Divide cost by one minus the target margin expressed as a decimal. A 15% target margin on €1,000 requires a selling price of about €1,176.47.
Should tolls be included before calculating margin?
Include every expense that the company intends to recover through the quoted price. Otherwise the apparent margin can be higher than the real result.
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Check profitability before sending the rate
Complete the transport cost in LogicCalc, apply the commercial uplift and review profit, markup and margin before confirming the customer price.
Margin results are commercial planning figures, not accounting or tax advice. Final profitability can change because of overheads, claims, delays, currency, financing and costs outside the route calculation.