Transportation, Freight & Distribution worked example

Freight Audit Savings at 81% share of overcharges actually recovered: a worked example

What does the result look like when share of overcharges actually recovered reaches 81%? The full calculation is worked below with real intermediate numbers. Use it to justify freight audit work, validate TMS invoice rules, or prioritize carrier billing clean-up.

The inputs for this scenario

  • Freight invoices audited: 850 invoices (unchanged)
  • Average overcharge found per invoice: 9.5 $ / invoice (unchanged)
  • Share of overcharges actually recovered: 81 % (raised for this scenario; the documented default is 70)
  • Audit labor or service fee: 1,200 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable freight audit savings = freight invoices audited × average overcharge found × recovery capture rate) to the inputs above produces each figure below.
  • At this operating point the engine returns 7,741 $ for total freight audit savings, the number this scenario is built around.
  • At this operating point the engine returns 9.11 $ / unit for recovered savings per invoice.
  • At this operating point the engine returns 6,541 $ for variable freight audit savings.
  • At this operating point the engine returns 1,200 $ for fixed charges.

How this compares with the baseline

  • Against the tool's baseline example, where share of overcharges actually recovered sits at 70% and the headline result is 6,853 $, this scenario comes in 12.96% above the baseline at 7,741 $.
  • A figure at this level is achievable when share of overcharges actually recovered is genuinely sustained, not just peaked for a shift. It assumes a stable average overcharge; error rates vary widely by mode and carrier, so a single blended figure can misstate savings for mixed portfolios.

Results at a glance

  • Total freight audit savings: 7,741 $ (headline result)
  • Recovered savings per invoice: 9.11 $ / unit
  • Variable freight audit savings: 6,541 $
  • Fixed charges: 1,200 $

Run it with your numbers

  • Every input above is editable in the live Freight Audit Savings calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.