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Last Mile Delivery Per-Shipment Cost Estimator

The Last Mile Delivery Per-Shipment Cost Estimator calculates the average delivery cost allocated to each completed shipment in a reporting period. It combines driver labor, vehicle and fuel cost, and other delivery operating costs, then divides by completed shipments.

The metric gives logistics teams a straightforward unit-cost view for tracking route economics or comparing delivery models. Keep the cost scope and completion definition consistent: including failed attempts, returns, depot overhead, or customer-service costs in one period but not another can change the result even when route operations are unchanged.

Inputs

$
$
$
shipments
Result
—
average allocated delivery operating cost
Total included cost—
Vehicle & fuel share—
Completed shipments—

1. Choose a reporting period
Use a shift, day, week, or accounting period and keep every cost and volume input on that same basis.

2. Enter driver labor cost
Include the delivery labor cost assigned to completed last-mile operations for the period.

3. Add vehicle and fuel cost
Enter the vehicle, fuel, charging, lease, maintenance, or other fleet costs included in your chosen scope.

4. Add other delivery cost
Use this field for additional included operating costs without duplicating items already counted.

5. Enter completed shipments
Divide the total included cost by completed shipment volume, then review the unit cost and cost mix.

Total last-mile delivery cost = Driver labor cost + Vehicle & fuel cost + Other delivery cost Cost per completed shipment = Total last-mile delivery cost ÷ Completed shipments

Where:

  • Driver labor cost = labor expense allocated to last-mile delivery in the period
  • Vehicle & fuel cost = fleet operating cost included in the chosen scope
  • Completed shipments = successfully completed shipment count used as the denominator

Assumptions: Costs and completed shipment volume cover the same period. The result is an average allocated cost and does not model the marginal cost of an individual stop or parcel.

What the result means

The main result is last-mile cost per shipment. Use the accompanying breakdown to interpret the operational drivers behind that value.

This planning calculator uses the values you enter and does not replace site-specific engineering, accounting, or operational standards.

Given: Driver labor = $24,600; vehicle and fuel = $13,200; other delivery cost = $4,200; 2,860 completed shipments.

Calculation: Total cost = $24,600 + $13,200 + $4,200 = $42,000. Cost per shipment = $42,000 ÷ 2,860 = $14.69.

Result: $14.69 per completed shipment.

Interpretation: Under this cost scope, each completed shipment absorbs an average of $14.69 in last-mile operating cost.

Should failed delivery attempts be included in the denominator?

This version uses completed shipments as the denominator. Costs from failed attempts can remain in the numerator if they are part of operations, which appropriately raises the cost per successful completion.

Can I use stops instead of shipments?

Yes, but the result becomes cost per stop and the denominator should be completed stops. This matters when a single stop contains multiple shipments.

Should warehouse picking cost be included?

Usually not for a last-mile-only metric. Include upstream fulfillment cost only if you intentionally want an end-to-end cost measure.

Why can unit cost fall when total cost rises?

If completed shipment volume grows faster than total included cost, average cost per shipment can decline even while total spending increases.

How should I compare delivery partners or regions?

Use the same cost scope, completion definition, period, and currency. Also review service level and route density because a lower unit cost may reflect a different service mix rather than better efficiency.