Free calculator for courier owners
How many daily routes does a courier business need to break even?
Each daily route covers its own driver, fuel and van costs. What is left pays dispatch, insurance and the office. Break-even is the number of routes that covers that fixed side.
Break-even point
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daily routes a month to cover every cost
Profit at today's level
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per month, before owner pay
Cushion above break-even
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how many you could lose and still cover costs
The starting numbers are an example for a courier business. Replace them with yours.
The worked example
Each daily route brings in $11,000 a month and costs $7,800 to serve. That leaves $3,200 toward fixed costs of $20,000 a month. Divide one by the other and you need 7 daily routes to break even. Every daily route past that adds $3,200 to profit.
Ways to lower break-even in a courier business
- Add stops to existing routes before adding new routes.
- Put fuel surcharges in every contract.
- Drop routes that never cover their van and driver.
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