Last Mile Cost Calculator
Calculate cost per delivered package including failed first attempts.
In short
Formula: Route cost = hours × (driver rate + vehicle rate) + distance × energy cost. Cost per delivered package = route cost ÷ (packages × (1 − failure rate)).
What this calculator does
Calculate cost per delivered package including failed first attempts. Worked example, questions and limitations included.
Use it to turn Currency (symbol only, never converted), Distance unit, Route hours, Driver cost per hour (loaded), and the other shown inputs into a checked result you can compare, copy, or rerun with different assumptions.
The page shows the formula, a numeric worked example, and the assumptions that affect this logistics calculation.
Inputs and what they mean
- Currency (symbol only, never converted)
- — choice value.
- Distance unit
- — choice value.
- Route hours
- — number value.
- Driver cost per hour (loaded)
- — number value.
- Vehicle cost per hour
- — number value.
- Route distance
- — number value.
- Fuel or energy cost per distance
- — number value.
- Packages attempted
- — number value.
- Failed first-attempt rate (enter 0 if none)
- — number value.
How to use it
- Enter each value in the unit shown next to the box (use the unit converter first if your numbers are in other units).
- Check the breakdown to see every intermediate step.
- Read the limitations before relying on the result.
Formula
Route-hour costing commonly used in last-mile delivery analysis.
Failed attempts consume cost without delivering, raising cost per delivered package.
All rates are yours; none are built in.
Route cost = hours × (driver rate + vehicle rate) + distance × energy cost. Cost per delivered package = route cost ÷ (packages × (1 − failure rate)).
Inputs used: Currency (symbol only, never converted), Distance unit, Route hours, Driver cost per hour (loaded), Vehicle cost per hour, Route distance, Fuel or energy cost per distance, Packages attempted, and other shown inputs.
Worked example
Van route
- Route = 252 + 108 + 30 = 390.
- Delivered = 144.
- 390 ÷ 144 = $2.71.
Reading the result
The headline figure is the main answer. Any breakdown underneath shows the parts that make it up, so you can check the working and see what changes when you adjust an input.
Limitations and assumptions
- Single route.
- Re-attempts not costed.
- Hourly vehicle cost is your estimate.
- Results are planning estimates built only from the figures you enter. No prices, rates, demand patterns or service levels are built in, and the results are not supplier quotes or carrier rates.
- The result depends on the values you enter for this last mile cost calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.
Common questions
Why per delivered package?
Failed attempts still cost money, so the true cost falls on successful deliveries. Check the formula, example, and limitations on this page before using the result for a real logistics decision.
Electric vans?
Enter electricity cost per distance as the energy cost. Check the formula, example, and limitations on this page before using the result for a real logistics decision.
Re-delivery cost?
The failed packages' next attempt is a cost on a future route. Check the formula, example, and limitations on this page before using the result for a real logistics decision.
How do I use the Last Mile Cost Calculator?
Enter the required values for Currency (symbol only, never converted), Distance unit, Route hours, Driver cost per hour (loaded), Vehicle cost per hour, and the other fields shown. The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.
What formula does the Last Mile Cost Calculator use?
Route cost = hours × (driver rate + vehicle rate) + distance × energy cost. Cost per delivered package = route cost ÷ (packages × (1 − failure rate)). The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone.
Can the Last Mile Cost Calculator be used for exact decisions?
Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.
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