Contract Manufacturing, Job Shop Quoting & Make-to-Order calculator

Expedite Premium Calculator

Measure what an expedite request adds to the quote before you commit shop capacity to it. You need the expedited price, the standard lead-time price, the lot size and your target premium.

What this calculator does

  • The rush surcharge an expedited quote carries over the standard lead-time price, in percent and dollars per unit.

Formula used

  • Expedite premium = (expedited quote price − standard lead-time price) ÷ standard lead-time price × 100
  • Premium dollars = expedited quote price − standard lead-time price
  • Premium per unit = premium dollars ÷ standard lot units; standard unit price = standard lead-time price ÷ standard lot units
  • Premium vs target = expedite premium − target premium

Inputs explained

  • Expedited Quote Price: What you quoted the rush job at the expedited lead time.
  • Standard Lead-Time Quote Price: What the same job would list at the standard lead time.
  • Standard Lot Units: Parts in the standard order used as the price baseline.
  • Target Premium: Premium you require before accepting the expedite.

How to use the result

  • Best suited to quoting a customer's rush request, checking a surcharge before accepting a pull-in, building an expedite policy into your quote sheet.
  • Measures the price gap only; it does not verify the surcharge covers the rush cost. Ignores the standard work displaced when a rush order takes the slot.

Current U.S. benchmarks

  • The U.S. prime lending rate is 7.00% (Federal Reserve via FRED, 2026-10-02). Payback and financing math should start from today's rate, not a remembered one.

Common questions

  • Does every expedite need a surcharge? No. When capacity sits idle, a small surcharge still beats turning the work down. The premium matters most when the rush pushes other promised jobs aside.
  • What costs should the premium cover? Overtime, a second setup, premium freight on material, outside processing fees and rescheduling other orders. Add those costs before you decide what the customer pays.
  • How do I justify a rush price to a customer? Show the added cost and the shorter lead time it buys. A customer who needs the earlier date is paying for capacity, not for a routine price increase.
  • Can the expedite premium be negative? Yes, when the expedited price sits below the standard lead-time price. That usually means the standard price changed after the rush quote was issued, so requote both sides.

Last reviewed 2026-10-01.