#2040 · Logistics & Manufacturing Tool

Last Mile Delivery Cost per Shipment Calculator

Calculate average last mile delivery cost per completed delivery for a defined reporting period. Combine labor, operating assets, systems or administration, and other consistently allocated costs, then divide by completed volume. The result also displays total period cost and labor’s share, helping operators identify the component with the greatest influence. It is an internal unit-cost estimate rather than a customer price, margin, or accounting standard.

Calculator

Period cost and volume
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deliveries

How to use this calculator

  1. Choose a reporting period and cost boundary.
  2. Enter mutually exclusive cost components.
  3. Enter completed shipment volume for that same period.
  4. Calculate unit cost and inspect the largest component.

Formula

Total period cost = labor + operations + administration + other allocated cost
Cost per shipment = total period cost ÷ completed shipments

What the result means

The main result is the average cost allocated to each completed shipment in the selected period. Component shares show where scenario changes have the most direct effect.

Use the same cost scope and completion definition across periods. Avoid double-counting shared overhead or depreciation.

Example calculation

The four cost inputs total $7,320. Dividing by 145 completed deliveries gives $50.48 each; labor represents 57.4% of entered cost.

Tips for better results

  • Reconcile inputs to one reporting period.
  • Document the completed-shipment definition.
  • Avoid counting shared overhead in two fields.
  • Compare normal and low-volume scenarios.
  • Separate cost per attempt when failed deliveries are material.

Frequently asked questions

Which costs belong in last mile delivery cost per shipment?

Include costs attributable to the same reporting period and scope, such as labor, operating assets, systems, administration, and consistently allocated overhead.

Should failed or returned deliveries be counted as completed shipments?

Only if your denominator policy defines them as completed. Keep the definition consistent and disclose it when comparing results.

Can depreciation be entered as an operating cost?

Yes, if it is allocated to the same period and is not also included in another field.

Why does shipment volume change unit cost?

The same period cost is divided across completed shipments, so lower volume increases the average when costs do not fall proportionally.

Does this result equal the price charged to a customer?

No. It is an average internal cost estimate and excludes any markup, tax, or pricing policy unless entered as cost.

Cost scope checklist

InputTypical scope
Driver and labor costSame reporting period
Vehicle and fuel costSame reporting period
Dispatch and technologySame reporting period
Other route overheadSame reporting period

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