Courier: Stops Per Hour Needed To Hit Target Pay

Excel Formulas › Courier & Delivery

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Per-stop pay sounds generous until fuel is taken out and the hour is divided up. A driver chasing a target hourly wage needs to know the stops-per-hour pace that gets there. This recipe subtracts fuel from the per-stop rate to get the net, then divides the target by that net.


Quick formula: Target hourly pay divided by net pay per stop, rounded up to a tenth:
=ROUNDUP(B2/(C2-D2),1)

A $22 target at $3.50 a stop with $0.60 fuel needs 7.6 stops an hour, or 61 in an 8-hour shift.

Functions used (tap for the full reference guide):

The example

Three routes with different rates and fuel cost per stop. Dense routes have lower fuel per stop and need fewer stops per hour.

ABCDEFG
1CaseTarget $/hrPay/stopFuel/stopShift hrsStops/hrPer shift
2Metro$22$3.50$0.6087.661
3Suburban$18$4.00$0.8085.746
4Dense core$25$3.00$0.50810.080

The formula

Net the fuel out of each stop first, then divide the target by what is left:

=ROUNDUP(B2/(C2-D2),1) // stops per hour; per shift = ROUNDUP(stops per hour * shift hours, 0)

How it works

Here is the logic, one piece at a time:

  1. C2-D2 is the net pay per stop after fuel cost.
  2. B2/(C2-D2) is how many net-paying stops equal one hour of target pay.
  3. ROUNDUP(...,1) rounds up to a tenth so the pace is never understated.
  4. Multiplying by the shift hours in E2 and rounding up again gives the stops needed per shift.

Re-run it whenever fuel prices move; it is the fastest way to see whether a route still pays.

Try it: interactive demo

Interactive

Enter target pay, pay per stop, fuel per stop and shift hours.

Variations

Guard against a rate below fuel cost

If fuel exceeds pay per stop the net is zero or negative; return a message instead of a nonsense pace.

=IF(C2<=D2,"Not viable",ROUNDUP(B2/(C2-D2),1))

Include per-hour vehicle wear

Subtract wear per stop in the same way as fuel if you track it.

=ROUNDUP(B2/(C2-D2-0.1),1)

Pitfalls & errors

If net pay per stop is zero the formula returns #DIV/0!; wrap it in IF as shown in Variations.

A pace above what the route physically allows (parking, stairs, signatures) means the rate is too low, not that the driver should hurry.

Compare the required pace against the pace your fastest drivers actually achieve before you quote a rate.

Practice workbook

📊
Download the free Courier: Stops Per Hour Needed To Hit Target Pay practice workbook
Edit the yellow target, rate and fuel cells; the pace and shift total recalculate.

Frequently asked questions

Does this count unpaid time between stops?
Only indirectly. The pace is stops per paid hour, so enter the target on total hours worked, including driving.
Should the target include taxes?
Use whatever number you are comparing against; the formula only divides.

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Function references: ROUNDUPIF