Courier service Delivery Cost per Stop
Cost per stop = (hours × driver cost + distance × vehicle cost) / stops
Gather completed route logs, fuel receipts and delivery records. Include mileage, dispatch time, and handling. The starting figures are examples. Replace them with your own records.
Formula and worked example
Cost per stop = (hours × driver cost + distance × vehicle cost) / stops
| Input | Example |
|---|---|
| Paid route hours | 8 |
| Loaded driver hourly cost | 25 |
| Route distance | 160 km |
| Vehicle operating cost | 0.45 per km |
| Completed stops | 32 |
| Calculated result | 8.5 per stop |
Choose reliable inputs
Compare route time, vehicle cost, delivery density and collection timing. For this courier service calculation, use completed route logs, fuel receipts and delivery records and a consistent definition of one delivery.
- Mileage: include the portion belonging to this delivery or reporting period, and record where the value came from.
- Dispatch time: include the portion belonging to this delivery or reporting period, and record where the value came from.
- Handling: include the portion belonging to this delivery 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.
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.