The Personally Procured Move (PPM), formerly known as DITY, is a great way for service members to take control of their move and earn an incentive payment. Use this calculator to estimate your gross incentive and your final net profit after deducting your actual moving expenses.
Personally Procured Move (PPM) Calculator
Gross Incentive Payment (Approx.):
$0.00Estimated Net Profit:
$0.00Detailed Calculation Steps:
Enter values and click ‘Calculate’ to see the steps.
Personally Procured Move (PPM) Formula:
The standard gross incentive is calculated as:
$$Gross\ Incentive\ Payment = Estimated\ Government\ Cost \times \frac{Incentive\ Percentage}{100}$$The estimated net profit is calculated as:
$$Net\ Profit = Gross\ Incentive\ Payment – Actual\ Moving\ Expenses$$Formula Source 1: DFAS Travel Entitlements | Formula Source 2: Move.mil PPM Guide
Variables Explained:
- Estimated Government Cost (EGC): The total amount the government would have paid a commercial carrier to move your household goods. This is the baseline for your incentive calculation.
- Incentive Percentage (IP): The percentage of the EGC paid to the service member. This is typically set at 95% by the DoD, but always confirm with your Transportation Office.
- Actual Moving Expenses (AME): All verified costs incurred by the service member to execute the move (e.g., rental truck, fuel, packing materials, labor).
Related Calculators:
What is a Personally Procured Move (PPM)?
A PPM is a type of household goods move where the service member or DoD civilian takes full responsibility for coordinating and executing the movement of their personal property. This involves planning the logistics, packing, loading, driving, and unloading themselves or hiring their own help.
In return for this effort, the member receives an incentive payment, calculated as a percentage (typically 95%) of what the government would have paid a commercial carrier for the same move. This payment is intended to cover the member’s costs, with the remainder becoming taxable profit.
The primary benefit of a PPM is flexibility. Members can move on their own schedule, potentially save money, and keep any difference between their total expenses and the gross incentive payment. It requires meticulous record-keeping for all expenses (receipts, weight tickets, etc.) to ensure proper reimbursement and tax reporting.
How to Calculate a PPM (Example):
- Determine EGC: Contact your Transportation Office (TO) to receive the official Estimated Government Cost (EGC) for your move. For this example, assume the EGC is $10,000.
- Calculate Gross Incentive: Multiply the EGC by the Incentive Percentage (e.g., 95% or 0.95). $$Gross\ Incentive = \$10,000 \times 0.95 = \$9,500$$
- Total Actual Expenses: Document all actual expenses for the move (rental truck, gas, materials, etc.). Assume your actual expenses totaled $6,000.
- Calculate Net Profit: Subtract your Actual Moving Expenses from your Gross Incentive. $$Net\ Profit = \$9,500 – \$6,000 = \$3,500$$ This $3,500 is your estimated profit (which is subject to income tax).
Frequently Asked Questions (FAQ):
- Is a PPM incentive taxable? Yes. The entire Gross Incentive Payment is initially considered taxable income, but the actual, verifiable moving expenses you submit are deductible. Therefore, only your net profit (Gross Incentive minus verified Expenses) is the amount you will pay income tax on.
- What documentation do I need for a PPM? You must have certified empty and full weight tickets for all moving conveyances used, fuel receipts, rental receipts (trucks, trailers), and receipts for any materials or labor you hire. Meticulous records are mandatory.
- What is the maximum incentive percentage I can receive? The standard maximum is 95% of the Estimated Government Cost (EGC). This is set by the Joint Travel Regulation (JTR) and military branch regulations.
- Can I do a partial PPM? Yes, you can elect to move only a portion of your authorized household goods yourself (a partial PPM), and the government will move the remainder commercially. Your incentive will be calculated based only on the weight/cost of the portion you moved.