Call-Out and Travel Charges: Calculate the Cost of a Visit

Pricing and profit: cost the work, then test the priceFor business ownersWorked example

A service visit uses travel, setup and on-site time as well as vehicle and job costs. Calculate that whole visit before deciding how to present the price. A call-out component and a bundled minimum can recover the same amount, but customers need to understand what is included and when extra work requires agreement.

What you’ll get from this guide: Cost a local and a distant visit, then compare two clearly described price structures.

  • Count the travel needed to complete the visit, including the return or next-job leg consistently.
  • Keep travel time and vehicle costs separate.
  • Show the full price and included work clearly to customers.

This worksheet is for mobile service owners whose short appointments take much longer once travel is included. Use your route records and operating costs. The example's distance rate is an internal vehicle-cost assumption, not an ATO deduction rate or an industry charge-out rate.

Follow the visit from departure to completion

  1. Travel out: 20 minutesReach the customer using the assumed local route.
  2. Set up: 10 minutesPark, unload and prepare the work area.
  3. On-site work: 30 minutesComplete the defined small service.
  4. Travel back: 20 minutesReturn under this example’s route assumption.

The visit uses 80 minutes. At a fictional internal delivery cost of $48 per hour, time costs $64. The route is 24 kilometres at a modelled $0.65 per kilometre, costing $15.60. Add $8 of consumables and the total modelled visit cost is $87.60.

For a route with several customers, allocate actual legs consistently. Don't charge every visit with a full return journey in the cost model if the same kilometres are already assigned to the next job. Equally, don't pretend travel between customers takes no time.

Local and distant visit costs

Assumptions: Fictional Australian-dollar management-costing example. Amounts exclude GST that is assumed recoverable; any non-recoverable tax is already included in costs. These assumptions do not establish your GST entitlement. Contribution is before unallocated overheads and income tax.

InputLocal visitDistant visit
Travel out and back40 minutes90 minutes
Setup and defined on-site work40 minutes40 minutes
Total time at $48/hour$64.00$104.00
Distance at internal $0.65/km24 km: $15.6070 km: $45.50
Consumables$8.00$8.00
Modelled visit cost$87.60$157.50
Chosen contribution target$40.00$40.00
Revenue required before assumed GST$127.60$197.50

Original ASBG worked example. All businesses, amounts and scenarios are fictional. The table contains the same figures as the visual.

The distant job costs $69.90 more before the contribution target. A single local minimum used for every destination would leave the distant visit short under these assumptions. Check actual traffic, parking, tolls, access delays and whether another nearby booking can change the route.

Compare two ways to present the same local visit

The next table assumes 10% GST applies to the full service. It compares a proposed consumer total of $143, equivalent to $130 before GST. It is an arithmetic example, not a recommended fee or ready-made contract.

Two structures, the same $143 total

Assumptions: Fictional fully taxable service at 10% GST. Both structures produce $130 revenue before GST and $42.40 above the modelled $87.60 visit cost. Additional work is outside this example.

StructureIncluded componentsCustomer total including assumed GST
Itemised local visitCall-out $77 plus defined small service $66$143
Bundled minimum visitLocal travel, setup and the defined 30-minute service$143

Original ASBG worked example. All businesses, amounts and scenarios are fictional. The table contains the same figures as the visual.

With an itemised price, explain that the service charge is additional to the call-out. With a bundled price, specify the included time and work. Calling something a call-out doesn't explain what happens when a diagnosis finds a larger repair.

Put the scope beside the price

Record the service area, included travel, setup, on-site time, consumables and exclusions. Explain the process for getting agreement before extra work. Confirm what happens if access is unavailable; have any proposed charge checked against the actual agreement and relevant rules.

The ACCC explains how total and component prices must be displayed. Business.gov.au's quote guide helps with the written scope. Don't use a low call-out figure as the apparent total where an unavoidable service charge also applies.

Review several weeks of actual visits before deciding which zones or minimum service lengths make sense. If jobs regularly run over the included time, investigate the task estimate as well as the price.

Where to get help

Check the hourly-rate calculation, then use the rush-job cost sheet for urgent bookings and job reviews for completed visits. Browse the pricing and profit hub for other service-cost examples.

General information only. This guide doesn't take your personal or business circumstances into account and isn't financial, legal or tax advice. Rates and thresholds change — check the official sources linked in this guide and get qualified advice where your circumstances require it.