Understanding the economics of a personally procured move

The Department of Defense allows service members to perform a personally procured move (PPM), formerly known as a DITY move, instead of relying on a government-arranged carrier. In a PPM, you pack, haul, and deliver your own household goods. The DoD reimburses you with an incentive payment tied to what it would have spent on a traditional shipment, often 95% of the government constructed cost (GCC). Because careful planning can turn that incentive into a net profit, while mistakes can result in out-of-pocket losses, the ability to model your move finances is invaluable. This calculator estimates GCC using weight, distance, and a cost factor, or lets you enter an official quote if you have one. It then applies the incentive percentage, subtracts any advance you already received, and walks through expenses, taxes, and the resulting net.

Every PPM is unique. Some service members rent a moving truck and drive across the country; others hire labor for loading and unloading but still manage the shipment themselves. Fuel prices, tolls, packing supplies, storage, and equipment rentals all add up. Meanwhile, the Defense Personal Property Program publishes rate tables that determine how much the government would have paid. Although those rates vary by origin, destination, season, and weight bracket, they can be approximated with a per pound-mile factor for planning purposes. This calculator defaults to $0.00075 per pound-mile—roughly equivalent to $750 per thousand pounds transported 1,000 miles—but you should adjust the number based on official estimates or the Transportation Office guidance.

The form also captures potential tax withholding. Since 2018, most military move reimbursements are taxable income. Finance offices typically withhold a percentage based on your taxable status, though you may later deduct qualifying expenses when filing your return. By inputting a combined federal and state tax rate, you can preview how much of the incentive might be withheld and what net cash reaches your bank account. The results include per-pound and per-mile metrics so you can compare the incentive to actual costs and evaluate whether the effort is worthwhile.

Formulas that drive the reimbursement estimate

At the core of the calculation is an estimate of what the government would have paid for your shipment. If you do not supply an official quote, the tool computes $G=w\times d\times c$, where $w$ is weight in pounds, $d$ is distance in miles, and $c$ is the cost factor per pound-mile. The incentive is then $I=G\times \frac{p}{100}$, with $p$ representing the authorized percentage (commonly 95). Advance payments are subtracted from the incentive to show the expected settlement amount—what finance will pay or recoup when you submit your weight tickets and receipts.

The net profit before tax simply equals incentive minus allowable expenses. To estimate the impact of withholding, the calculator multiplies the incentive by your tax rate: $T=I\times \frac{r}{100}$. The cash that ultimately remains after both expenses and withholding is $N=I-T-E$, where $E$ represents actual expenses. Presenting the numbers in this sequence mirrors the way your travel voucher will be adjudicated.

The calculator also reports the incentive per pound and your actual cost per mile. These ratios help you decide whether to shift weight from storage, mail certain items separately, or re-evaluate rental truck sizes. If the incentive per pound is close to or below your cost per mile, the PPM may not be profitable without trimming expenses.

Worked example: a cross-country PCS with partial DITY

Suppose a staff sergeant stationed at Fort Liberty is moving to Joint Base Lewis-McChord. The household goods weigh 8,500 pounds, and the mileage chart lists 2,775 miles between the installations. The Transportation Office provides an estimated government cost of $18,500; however, the member wants to understand profitability before committing, so they also plug the numbers into this calculator. Keeping the default cost factor produces an estimated GCC of roughly $17,700, close to the official amount. The member expects to spend $4,600 on truck rental, fuel, lodging, tolls, and packing supplies. Finance already issued a $6,000 advance, and the member’s combined federal and state marginal tax rate is 22%.

Submitting those inputs reveals a gross incentive of $16,815 (95% of the $17,700 estimated GCC). After subtracting the $6,000 advance, the expected settlement upon voucher submission is $10,815. Out-of-pocket costs of $4,600 reduce the pre-tax profit to $12,215. A 22% withholding slices $3,699 off the incentive, leaving $9,116 deposited after taxes. After reimbursing expenses, the move nets $4,516 in cash. On a unit basis, the member earns about $1.98 per pound moved and spends $1.66 per mile in actual costs. The calculator highlights that even after taxes, the PPM remains comfortably profitable.

Armed with these numbers, the member can decide whether to downsize belongings, adjust the move date to chase higher summer incentive rates, or pursue a partial PPM by letting the government ship a portion of the weight. If the official GCC quote differs significantly, they can enter it directly to refine the output.

Comparison table: evaluating different incentive scenarios

The table below compares three potential approaches for the same move: a full-service government shipment, a 95% incentive PPM, and a hypothetical 100% incentive authorized in certain surge periods. All scenarios use the same expenses and tax rate to illustrate how the incentive percentage drives profitability.

Comparing the scenarios reinforces that a PPM’s profitability hinges on the incentive rate and your ability to control expenses. Even a small bump in the percentage can translate to hundreds of dollars in additional take-home pay.

Limitations and assumptions

This calculator provides planning estimates rather than official entitlements. Actual GCC values depend on the Defense Personal Property Program’s detailed rate tables, which incorporate seasonal codes, service-specific adjustments, and minimum charges. Always obtain an official quote before making irreversible decisions. The cost factor used here does not account for special items, professional gear allowances, or shipment of privately owned vehicles.

Tax withholding rules can change, and actual withholding may differ from the percentage you input. While most move reimbursements are taxable, certain allowances remain excludable. Consult your finance office or a tax professional to confirm how your move will be treated. Additionally, expenses must be supported by receipts and fit within allowable categories; otherwise, finance may disallow them. The calculator assumes all expenses entered are reimbursable for tax deduction purposes. Finally, the model does not consider storage-in-transit, partial PPM arrangements, or weight allowance caps. If your household goods exceed your authorized weight, excess cost liabilities may apply. Use this tool as a starting point, then refine your plan with official guidance from your Transportation Office.