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Last Mile Delivery Cost Calculator

Work out last mile delivery cost instantly with clear inputs, formula shown and shareable results.

About Last Mile Delivery Cost Calculator

Last mile cost per drop is the route cost divided by drops, and the driver cost usually dominates. Kilometres per drop is the key efficiency indicator: dense urban routes achieve under two kilometres per drop, while rural routes can exceed ten.

Formulas

Total route cost

Route cost = Distance x Vehicle cost per km + Driver cost per route

Cost per drop

Per drop = Total route cost / Drops per route

Worked example

With the default values below, Last Mile Delivery Cost Calculator returns Cost per drop of $118.13. Change any input above and every figure here is recalculated in your browser.

Inputs used

Drops per route
64
Route distance
120 km
Vehicle cost per km
28
Driver cost per route
4,200

Results

Cost per drop
$118.13
Total route cost
$7,560.00
Vehicle running cost
$3,360.00
Kilometres per drop
1.875

Step by step

  1. 1Values used
  2. 2Total route cost
  3. 3Cost per drop
  4. 4Cost per drop= 118.13
  5. 5Total route cost= 7,560.00
  6. 6Vehicle running cost= 3,360.00
  7. 7Kilometres per drop= 1.875

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Why is the driver cost dominant?

Because most of the working day is spent stopping, parking, walking to the door and handing over, not driving. Time, not distance, drives last mile cost.

What reduces cost per drop most?

Increasing drop density: more deliveries in the same area. Delivery windows and failed first-time deliveries work directly against it.

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