Menu
Transport & delivery / Question & answer

Freight brokerage Delivery Cost per Stop: worked example

Include both paid route time and vehicle operation in delivery cost.

Cobalt ribbon, chrome ring and orange sphere in architectural light
Freight brokerage / shipment economics
Answer

With the illustrative inputs below, the result is 8.5 per stop.

Try this with your own numbers

Formula and worked example

Cost per stop = (hours × driver cost + distance × vehicle cost) / stops

Example figures
InputExample
Paid route hours8
Loaded driver hourly cost25
Route distance160 km
Vehicle operating cost0.45 per km
Completed stops32
Calculated result8.5 per stop

Choose reliable inputs

Compare route time, vehicle cost, delivery density and collection timing. For this freight brokerage calculation, use completed route logs, fuel receipts and delivery records and a consistent definition of one shipment.

  • Carrier charges: include the portion belonging to this shipment or reporting period, and record where the value came from.
  • Admin time: include the portion belonging to this shipment or reporting period, and record where the value came from.
  • Claim handling: include the portion belonging to this shipment or reporting period, and record where the value came from.

Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.

Do shorter routes always mean cheaper deliveries?

Compare completed stops and total paid time. Vehicle cost must exclude driver pay to avoid double counting.

Compare a different assumption

What if this input changes?

If paid route hours rises by 10%, this example changes by 0.625 per stop. This shows the effect of one change; it does not predict what will happen.

Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.

More tools and guidance

Find the next calculation
you need.

Browse calculatorsFind your industry
Cobalt ribbon, chrome ring and orange sphere in architectural light

Search AskToBot

Start typing to find a calculator or conversion.