The contractor money toolkit
Route density calculator
Calculate route density savings by multiplying the time and miles saved between stops by their crew and truck costs, then by workdays per year.
See what it adds up to
- Drive hours saved per year
- 360 hours
- Extra stops capacity per day
- 1.64 stops
- Annual dollars saved
- $28,512.00
- Margin points gained
- 7.92 points
Savings use the current number of stops. Extra stop capacity is a separate use of the freed time; do not count those same crew hours as both cash savings and added production.
Show your work
How the math works
Use the same math on a spreadsheet or a sheet of paper. Percentage inputs become decimals in the formulas.
1. Count the drives between stops
A route with ten stops has nine drives between them. Multiply those drives by the change in average drive time and by annual workdays.
Travel legs = max(stops per day − 1, 0); hours saved = legs × (minutes now − minutes after) × workdays ÷ 60
2. Price the hours and miles
Value the saved hours at the whole crew's hourly cost. Add the saved miles times truck cost per mile.
Annual savings = hours saved × crew hourly cost + legs × (miles now − miles after) × workdays × truck cost per mile
3. Estimate room for more stops
Divide daily minutes saved by the time needed to drive to and service one extra stop. A fraction is average capacity; round down when planning whole daily appointments.
Extra stops per day = max(daily minutes saved, 0) ÷ (service minutes per stop + drive minutes after)
4. Translate savings into margin points
Divide annual savings by annual revenue at the current stop count, then multiply by 100. These are percentage points added to margin.
Margin points gained = annual savings ÷ (stops per day × revenue per stop × workdays) × 100
The numbers on paper
A worked example
The same crew, current stop count and average service time apply before and after. Travel to the first stop and home from the last stop is unchanged and excluded. Negative savings mean the proposed route costs more. Labor savings become cash savings only when paid hours fall; otherwise they are capacity you can use for other work.
| Input | Value |
|---|---|
| Stops per day now | 10 stops |
| Drive minutes between stops now | 20 minutes |
| Drive minutes between stops after | 10 minutes |
| Whole crew cost per hour | $60.00 |
| Truck cost per mile | $0.80 |
| Average miles between stops now | 8 miles |
| Average miles between stops after | 4 miles |
| Workdays per year | 240 days |
| Service minutes per stop | 45 minutes |
| Revenue per stop | $150.00 |
| Result | Value |
|---|---|
| Drive hours saved per year | 360 hours |
| Extra stops capacity per day | 1.64 stops |
| Annual dollars saved | $28,512.00 |
| Margin points gained | 7.92 points |
Use the result to make the next call
Look for nearby accounts that fit the current crew and service time. Check the route in the field, then decide whether the freed hours will reduce paid time or let the crew serve more stops.
Common questions
A few things to know
How does route density improve contractor margins?
Closer stops reduce paid drive time and truck miles for the same amount of completed work. Dividing those savings by revenue gives the potential gain in gross margin points. If paid hours stay fixed, the saved time is capacity for more work instead of a payroll reduction.
Why are there fewer travel legs than stops?
There is one drive between each neighboring pair of stops. Ten stops therefore have nine between-stop drives. This calculator holds travel from the yard to the first stop and back from the last stop unchanged, so those two trips are excluded.
How is extra stop capacity calculated?
The calculator divides daily drive minutes saved by service minutes plus the new drive time for an extra stop. It keeps service time fixed. The result is average capacity, so round down for whole daily appointments and check actual route timing.
Can I count extra revenue as well as the labor savings?
Use one treatment for the same saved crew hours. Reducing paid hours creates labor savings; keeping those hours and adding stops creates capacity for revenue. The calculator reports capacity separately and does not add its potential revenue to annual savings.
What does a gain of 5 margin points mean?
It means savings equal to 5% of current route revenue. A 30% gross margin would become 35% if those savings reduce direct costs and revenue is unchanged. It is a change of five percentage points, not a 5% relative increase in margin.
What happens if my new route is longer or has no revenue?
Longer drives or more miles can produce negative annual savings and negative margin points. Extra stop capacity is zero when no drive time is freed. With zero revenue or zero workdays, margin points are Not defined because there is no annual revenue denominator.
Find the next account near the last one
Ground Control by PorchRocket finds homes and commercial buildings in the areas you pick. Build a prospect list around the routes your crews already run.