Fuel surcharge calculator.
Enter the diesel price when you set your rates, this week's price and how much of your route cost is fuel. You'll get a surcharge percent you can explain to any client.
Per gallon
Per gallon; the EIA publishes a weekly U.S. average
Often 10% to 20% for shred trucks; use your own books
To see the surcharge in dollars
Fuel surcharge
3.0%
Diesel is up 20% since you set your rates. On a $250.00 invoice, that's $7.50.
The formula
Surcharge percent = (this week's diesel price minus your base price) divided by your base price, times fuel's share of your route costs.
Example: you set your prices when diesel was $3.50 a gallon. It's now $4.20, which is 20% higher. If fuel is 15% of what it costs you to run a route, the surcharge is 20% times 15%, or 3%. When diesel falls back to your base price, the surcharge goes to zero.
Where to get the diesel price
The U.S. Energy Information Administration (EIA) publishes a weekly average retail diesel price for the country and for regions. Many companies update their surcharge on a set schedule, such as monthly, using that number so clients can check it.
Explaining it to clients
Put the surcharge on its own invoice line, say how it's calculated and when it changes, and apply it the same way to everyone. Our guide to fuel surcharges for shredding has wording you can use.
Trakro does this for you
In Trakro you set your fuel surcharge once and choose which services it applies to. It's added to every invoice on its own line, so clients see exactly what it is.
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Questions
Common questions
What's a typical fuel surcharge for shredding?
It depends on how far diesel has moved from the price your rates were based on and how fuel-heavy your routes are. Use your own numbers in the calculator rather than copying another company's percent.
How often should I change the fuel surcharge?
Pick a schedule (monthly is common), use a public price like the EIA weekly diesel average, and stick to it so clients know what to expect.
Should the fuel surcharge apply to purges and drop-offs?
Apply it to work that uses your trucks. Drop-off shredding at your plant usually doesn't carry one. Whatever you choose, apply it the same way to every client.
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