Should you charge
a trip fee?
That job is 45 minutes away. Is it worth the drive? Enter the distance and job value. See your effective hourly rate after drive time and whether you should charge extra.
Job details
IRS 2026 rate is $0.725/mile. Service vehicles often cost $0.70+.
Multi-visit jobs (estimate visit + work visit) multiply travel cost.
Effective hourly rate
Calculating...
The breakdown
Break-even distance
Profitability zones
Green zone (0-15 mi)
Local work. Minimal travel impact on your margins.
Yellow zone (15-30 mi)
Moderate distance. Watch your margins and consider a trip fee.
Red zone (30+ mi)
Significant travel cost. Price accordingly or decline the job.
How to protect your margins on distant jobs
Charge a trip fee for jobs over 15 miles
A flat trip fee ($50-$150 depending on distance) sets expectations upfront and offsets your travel cost. Most customers understand that farther jobs cost more to service.
Cluster far-away jobs on the same day
If you have multiple calls from the same area, schedule them back to back. One round trip serving three customers is far more profitable than three separate trips.
Add drive time to your estimate, not just on-site time
When you quote a job, your cost includes every hour you spend on it. An hour of driving is an hour you could be billing somewhere else. Factor travel time into your pricing.
Know your real vehicle cost per mile
The IRS standard mileage rate for 2026 is $0.725/mile, but true vehicle costs (depreciation, insurance, maintenance) often run $0.80 to $1.10 per mile for service vehicles loaded with tools and equipment.
IRS standard mileage rate (2026)
True cost for service vehicles is often higher due to depreciation, insurance, and maintenance on heavier vehicles.
Average billable hours per year
For a solo contractor. Every hour spent driving is an hour that could be billed to a paying customer.
Common profitable service radius
The radius where most profitable contractors focus their service area. Beyond this, margins drop fast without trip fees.
Disclaimer: This calculator is for informational purposes only. Results are estimates based on the inputs you provide and industry averages. Actual costs and revenue may vary based on your market, business model, and other factors. Consult with a financial professional for specific business decisions.
Last updated: May 2026
Frequently asked questions
How do I calculate if a far job is worth it?+
Take the job revenue, subtract your vehicle cost for the round trip (miles x 2 x cost per mile x number of trips), then divide by the total hours involved (on-site work plus all drive time). That gives you your effective hourly rate. If it's significantly lower than what you'd earn on a local job, the drive isn't worth it unless you can add a trip fee to make up the difference.
Should I charge a trip fee?+
Yes, for any job outside your core service radius. Most contractors set a trip fee starting at 15-20 miles from their shop or home base. The fee should at minimum cover your vehicle costs for the round trip, and ideally compensate for the lost billable time as well. Be upfront about it when quoting. Customers expect to pay more for service calls that require longer drives.
What's the real cost per mile for my service vehicle?+
The IRS standard mileage rate for 2026 is $0.725 per mile, which covers gas, depreciation, insurance, and maintenance for a typical car. Service vehicles (vans, trucks loaded with tools and equipment) cost more. Fuel alone might run $0.15-$0.25 per mile depending on your vehicle. Add depreciation ($0.20-$0.35), insurance ($0.05-$0.10), and maintenance ($0.08-$0.15), and you're often at $0.80 to $1.10+ per mile for a fully loaded service vehicle.
How do I handle multi-day jobs far away?+
For multi-day jobs at a distance, the math changes significantly. Each additional trip multiplies your travel cost. Options include: building all travel costs into the job price upfront, charging for a hotel stay if it's cheaper than multiple round trips, or requiring a minimum job size for distant work. Use this calculator with the number of trips set to see the full impact before you quote.
What's a good service area radius?+
It depends on your trade and market density. In a metro area, 10-15 miles is a common core radius where travel impact is minimal. In rural areas, 25-30 miles might be necessary just to have enough customers. The key is knowing your numbers. Use this calculator to find the distance where your effective rate drops below a level you're comfortable with, then set that as your standard boundary. You can always take jobs beyond it with a trip fee.
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