Key Takeaways
- Labor + truck + fuel + overhead = your base cost
- Add 15-25% margin for profit on every job
- Track actual vs estimated time to improve accuracy
- Use moving CRM software to automate calculations
Accurate cost calculations are the foundation of profitable moving estimates. Price too low and you lose money. Price too high and you lose the job. This guide shows you the exact formulas and methods to calculate moving costs correctly every time.
The Basic Moving Cost Formula
Master Formula
Total Cost = Labor + Truck + Fuel + Supplies + Overhead + Profit Margin
Step 1: Calculate Labor Costs
Labor is typically 50-60% of your total job cost. Here's how to calculate it:
Labor Cost Formula:
Labor Cost = (Hourly Wage + Payroll Tax) × Estimated Hours × Number of Movers
Example:
- • Mover wage: $18/hour
- • Payroll tax (15%): $2.70/hour
- • Total labor cost: $20.70/hour per mover
- • 3 movers for 5 hours = $20.70 × 5 × 3 = $310.50
Step 2: Calculate Truck Costs
Include depreciation, maintenance, and insurance allocated per job:
Truck Cost Formula:
Daily Truck Cost = (Monthly Payment + Insurance + Maintenance) ÷ Working Days
Example:
- • Monthly truck payment: $800
- • Monthly insurance: $400
- • Monthly maintenance reserve: $200
- • Working days per month: 22
- • Daily truck cost = $1,400 ÷ 22 = $63.64/day
Step 3: Calculate Fuel Costs
Fuel Cost Formula:
Fuel Cost = (Total Miles ÷ MPG) × Price Per Gallon
Example:
- • Distance: 30 miles round trip
- • Truck MPG: 10
- • Gas price: $4.00/gallon
- • Fuel cost = (30 ÷ 10) × $4.00 = $12.00
Step 4: Add Overhead Allocation
Overhead includes office rent, utilities, software, marketing, and administrative costs. Calculate a percentage to add to each job:
Overhead Allocation:
If monthly overhead is $3,000 and you complete 30 jobs/month:
Overhead per job = $3,000 ÷ 30 = $100/job
Step 5: Add Your Profit Margin
After covering all costs, add your profit. Most successful moving companies target 15-25% profit margins.
Complete Example
- • Labor: $310.50
- • Truck: $63.64
- • Fuel: $12.00
- • Supplies: $25.00
- • Overhead: $100.00
- • Total Cost: $511.14
- • Profit (20%): $102.23
- • Final Price: $613.37
Pricing by Cubic Feet
For long-distance moves, cubic feet pricing is often more accurate:
Cubic Feet Formula:
Price = Total Cubic Feet × Rate Per Cubic Foot
Typical Rates:
- • Short distance (under 100 miles): $2-4 per cubic foot
- • Medium distance (100-500 miles): $3-5 per cubic foot
- • Long distance (500+ miles): $4-7 per cubic foot
Room-by-Room Volume Estimates
| Room Type | Average Cubic Feet |
|---|---|
| Studio apartment | 200-300 cu ft |
| 1 bedroom apartment | 300-500 cu ft |
| 2 bedroom apartment | 500-800 cu ft |
| 3 bedroom house | 1,000-1,500 cu ft |
| 4 bedroom house | 1,500-2,000 cu ft |
Automate Your Calculations
Stop doing math by hand. Reelow CRM calculates estimates automatically based on inventory, distance, and your custom rates—ensuring accurate, profitable pricing every time.
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