- Enter shipment volume
Use packages expected to leave the warehouse during the month.
- Add postage
Enter the carrier charge after negotiated discounts.
- Include packaging
Count boxes, mailers, insulation, and other shipment materials.
- Add fulfillment labor
Use the pick-and-pack charge allocated per shipment.
- Enter customer shipping charge
Use zero when shipping is fully included in the plan price.
- Review the subsidy
A positive subsidy is the shipping cost absorbed by the business.
Subscription Shipping Calculator
This calculator estimates the monthly shipping expense for a physical subscription program using shipment volume, package cost, postage, and fulfillment charges.
Subscription-box operators can use it to budget logistics, calculate shipping cost per active shipment, and see the effect of free-shipping subsidies or customer shipping charges.
Enter your values
Result
—
Net monthly shipping cost
Cost per shipment—
Shipping revenue—
Company subsidy—
Cost per shipment = Postage + Packaging + Pick and pack
Gross shipping cost = Shipments × Cost per shipment
Net shipping cost = Gross shipping cost − (Shipments × Customer shipping charge)
The calculation assumes every shipment has the same average costs and that all customer shipping charges are collected.
What the result means
The main result is the monthly shipping expense retained by the business after customer shipping charges.
Fuel surcharges, remote-area fees, reships, returns, storage, and dimensional-weight changes may require separate allowances.
Given
A box program ships 850 packages. Each costs $6.75 postage, $1.15 packaging, and $2.40 fulfillment; customers pay $4.99 shipping.
Calculation
Cost per shipment = $6.75 + $1.15 + $2.40 = $10.30.
Gross cost = 850 × $10.30 = $8,755.
Net cost = $8,755 − (850 × $4.99) = $4,513.50.
Result
The company absorbs $4,513.50 per month, or $5.31 per shipment.
Should warehouse storage be included?
Not in the per-shipment fields unless it is already allocated into fulfillment cost. Fixed storage can be added separately to a broader fulfillment budget.
What if package weights vary?
Use a weighted average postage cost from the expected shipment mix, or calculate each package tier separately.
How should free shipping be entered?
Enter zero for the customer shipping charge. The result will equal the full gross shipping cost.
Can the subsidy be negative?
Yes. If customer shipping charges exceed shipping costs, the displayed company subsidy becomes negative, indicating a surplus.
Does this include returns and reships?
No. Increase shipment volume or use a separate allowance when replacements and return labels are material.