Cost Per Shipment Calculator
Calculate the total cost to ship individual parcels, combining carrier freight postage, box materials, packing labor, and parcel insurance.
Cost Per Shipment Formula
Total Cost = Carrier Postage + Packaging Materials + [(Handling Mins / 60) × Hourly Wage] + Insurance- Carrier Postage: Freight postage paid to USPS, UPS, FedEx, or DHL.
- Packaging Materials: Corrugated shipper box, protective fill, and thermal label.
- Labor Allocation: Direct hourly wage allocated for the minutes required to tape, pack, and label.
- Insurance & Tracking: Optional parcel loss and damage coverage.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Postage reflects commercial discounted rates (e.g. USPS Commercial Plus).
- Handling minutes include box assembly, picking, and packing.
Frequently Asked Questions
Why should I track all-in cost per shipment instead of just postage?
Carrier postage is often only 60% to 70% of the true cost. Boxes, custom tape, labor time, and parcel insurance add several dollars to every package leaving your facility.
How can I lower my cost per shipment?
Use shipping software (e.g. ShipStation, Pirate Ship) for commercial cubic rates, replace heavy cardboard boxes with poly mailers where safe, and batch process shipping labels.
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