How do you calculate last-mile delivery cost?

Multiply delivery stops by cost per stop and the completed-stop share, then add fixed route and service cost. With 180 stops at $16.50, a 94% completion share, and $240 fixed cost, variable cost is $2,791.80 and total cost is $3,031.80.

What is cost per stop in last-mile delivery?

It is total route cost divided by stops. In the example, $3,031.80 across 180 stops is $16.84 per stop, slightly above the $16.50 base because fixed route cost is spread across every stop.

Why does the completed stop share matter?

Failed first-attempt deliveries force re-delivery, which adds cost without adding a completed order. A 94% completion share reflects a small share of stops that need a second attempt, and driving it higher is one of the biggest last-mile cost levers.

What is a good last-mile cost per stop?

It ranges widely, from roughly $8-$12 on dense urban routes to $15-$25 or more on suburban and rural routes; the $16.84 in this example is typical for a mixed suburban route.

Why is last-mile delivery so expensive?

Low drop density, traffic, driver time at the door, failed deliveries, and fixed vehicle and depot cost spread over relatively few stops all pile onto the final leg, making it the costliest segment of the chain.

How do you lower last-mile cost per stop?

Increase stops per route to spread fixed cost, tighten route density, and raise first-attempt success with better address data and delivery windows. Each of those directly lowers the per-stop figure this calculator reports.

Transportation, Freight & Distribution calculator

Last-Mile Delivery Cost Calculator

Last-mile delivery cost is the spend to move a shipment over its final leg from the local depot to the customer's door, the most expensive and least efficient segment of the delivery chain. Fleet and e-commerce fulfillment managers use it to price delivery, set stop densities, and decide between in-house fleets and third-party couriers. It matters because last-mile can absorb 40-50% of total shipping cost, driven by low drop density, failed deliveries, and fixed route overhead that has to be earned back across every stop. This calculator combines variable per-stop cost, a first-attempt success factor, and fixed route cost into total cost and a clean cost-per-stop metric.

What this calculator does

Estimate last-mile delivery cost from stop count, cost per stop, completed-stop share, and fixed route or customer-service charges.
Use it for local delivery, field service parts, retail replenishment, and customer-specific cost-to-serve reviews.
It computes variable last-mile cost as stops times cost per stop times completed-stop share, adds fixed route and service cost, and reports total cost and cost per stop.

Formula used

Variable last-mile delivery cost = delivery stops × cost per stop × completed stop share
Total last-mile delivery cost = variable last-mile delivery cost + fixed route and service cost

Inputs explained

Delivery stops on route:
Variable cost per stop:
Completed stop share (first-attempt success):
Fixed route and service cost:

How to use the result

Use it when pricing delivery, comparing courier bids, or testing how route density and first-attempt success change unit economics.
It treats cost per stop as uniform; dense urban routes and sparse rural routes have very different per-stop costs and should be modeled separately.

Current U.S. benchmarks

On-highway diesel averages $4.58 per gallon this week (EIA), trending down over recent periods. Truck tonnage is up 3.4% year over year (ATA via FRED).

Common questions

How do you calculate last-mile delivery cost? Multiply delivery stops by cost per stop and the completed-stop share, then add fixed route and service cost. With 180 stops at $16.50, a 94% completion share, and $240 fixed cost, variable cost is $2,791.80 and total cost is $3,031.80.
What is cost per stop in last-mile delivery? It is total route cost divided by stops. In the example, $3,031.80 across 180 stops is $16.84 per stop, slightly above the $16.50 base because fixed route cost is spread across every stop.
Why does the completed stop share matter? Failed first-attempt deliveries force re-delivery, which adds cost without adding a completed order. A 94% completion share reflects a small share of stops that need a second attempt, and driving it higher is one of the biggest last-mile cost levers.
What is a good last-mile cost per stop? It ranges widely, from roughly $8-$12 on dense urban routes to $15-$25 or more on suburban and rural routes; the $16.84 in this example is typical for a mixed suburban route.
Why is last-mile delivery so expensive? Low drop density, traffic, driver time at the door, failed deliveries, and fixed vehicle and depot cost spread over relatively few stops all pile onto the final leg, making it the costliest segment of the chain.

Last reviewed 2026-05-12.