Transportation, Freight & Distribution worked example

Load Consolidation Payback with consolidation project cost of 162,500 $: a worked example

This scenario runs the load consolidation payback calculation on the strong side: consolidation project cost of 162,500 $, with every other input held at its documented default. Use it for consolidation software, pool distribution, routing changes, or staging labor investments that reduce LTL and parcel spend.

The inputs for this scenario

  • Consolidation project cost: 162,500 $ (raised for this scenario; the documented default is 65,000)
  • Annual consolidation savings: 52,000 $ / yr (unchanged)
  • Annual support cost: 9,000 $ / yr (unchanged)

Working through the calculation

  • Applying the documented formula (Net annual savings = annual consolidation savings - annual support cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 3.78 years for years to payback, the number this scenario is built around.
  • At this operating point the engine returns 43,000 $ / yr for net annual savings.
  • At this operating point the engine returns 162,500 $ for consolidation project cost.
  • At this operating point the engine returns 52,500 $ for five-year net savings.

How this compares with the baseline

  • Against the tool's baseline example, where consolidation project cost sits at 65,000 $ and the headline result is 1.51 years, this scenario comes in 150% above the baseline at 3.78 years.
  • Use it when evaluating a consolidation center, pooled distribution, multi-stop truckload routing, or a TMS optimization module that combines LTL shipments into full loads. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Years to payback: 3.78 years (headline result)
  • Net annual savings: 43,000 $ / yr
  • Consolidation project cost: 162,500 $
  • Five-year net savings: 52,500 $

Run it with your numbers

  • Every input above is editable in the live Load Consolidation Payback calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.