How we calculate your net margin

The exact method behind every number, and where it has limits.

This is the method used for every price check and in the daily app.

The formula

Net margin per gallon
= pump price, less taxes
− cost of the fuel actually in your tank
− card fees
− freight

Each line is shown to a tenth of a cent, and net is always the subtraction of the lines shown, so the column on your report always adds up with a calculator.

This is your fuel margin after card fees and freight. It is not your profit: wages, rent, utilities and other store costs are not included.

Where each number comes from

LineTaken from
Gallons and pump priceDaily fuel sales by grade from your POS
Cost of fuel in the tankYour fuel invoices and delivery tickets, blended tank by tank
Card feesYour card processing statements, matched to each day’s card sales
FreightThe freight charge on each fuel invoice
TaxesThe rates for your station, printed on your report for you to check
Delivery checkDelivery tickets against tank gauge readings

How it is worked out

Fuel is costed at what is really in the tank

Each delivery blends into a running average cost for that tank. Fuel is costed at what you paid for the fuel you are actually selling, not at today’s rack price. The gap between the two is the “next load is cheaper” signal on the Tanks screen.

Taxes come out of both sides

Excise taxes are collected from the driver and paid to the government, so they are neither your revenue nor your cost. Card fees are the exception: the processor charges them on the full swipe, taxes included, so that is how they are counted.

Card fees are charged to the day they were earned

Your processor statement is monthly. NineTenths works out the statement’s effective fee rate and applies it to each day’s own card sales, because the card mix changes with the day of the week. Spreading the fees evenly across the month would hide that.

Deliveries land before that day’s sales

A delivery made on a given day is counted before that day’s sales. This is stated on every report so nobody has to guess.

Delivery checks use the right gallons

Invoices bill “net” gallons, corrected to 60°F. Tank gauges measure actual volume, which is not temperature-corrected. Comparing the two directly would invent a shortage on every warm day, so the gauge is checked against gross gallons and the money is worked out on billed gallons.

Midgrade is blended at the pump

At most stations midgrade has no tank of its own. Its cost is a mix of the regular and premium tanks, and selling it draws down both.

Known limits

See a sample report