Delivery Cost Calculator

Last-mile delivery cost is the expense of delivering packages from a distribution hub or warehouse to the final destination. It is typically the most expensive part of the supply chain, accounting for 41–53% of total logistics costs. The average last-mile cost per delivery in the US ranges from $8–$15 for B2C e-commerce, but can vary widely based on density, distance, and package size.

Vehicle cost per mile includes fuel, maintenance, depreciation, insurance, and registration. For a commercial delivery van, typical costs are: Fuel: $0.12–$0.18/mile (at $3.50/gal, 20–25 mpg), Maintenance: $0.07–$0.12/mile, Depreciation: $0.06–$0.10/mile, Insurance: $0.05–$0.08/mile. Total is typically $0.30–$0.50/mile. The IRS standard mileage rate (2024: $0.67/mile) can serve as a benchmark.

Key strategies: Optimize delivery sequences to minimize total mileage (use routing software). Increase stops per route — density is the key driver of profitability. Use time windows to cluster deliveries geographically. Reduce failed delivery attempts through SMS/email notifications. Consider locker/parcel box delivery points. Match vehicle size to delivery density — smaller vans in cities, larger trucks in rural areas.

Industry benchmarks per delivery: Amazon Logistics: ~$4–6 (highly optimized), FedEx/UPS residential: $7–12, Last-mile couriers: $8–18, Same-day delivery: $15–25+. Cost per mile for last-mile routes: $2–5 in urban areas (many stops, short distances), $3–8 in suburban/rural (fewer stops, longer distances). Break-even typically requires 20+ stops per route at standard rates.

Start with your cost per package (this calculator), then add desired margin (typically 20–40% for delivery services). Consider zone-based pricing (charging more for distant deliveries), weight/size tiers, fuel surcharges, and residential delivery premiums. Compare to local market rates. Many delivery businesses charge $8–20 per delivery plus fuel surcharges, depending on the market and service level.