Cost per delivery calculator
Add up one vehicle’s day: driver, vehicle, fuel, tolls and overhead. Take out the attempts that fail and see what each successful delivery costs, and the fee that covers it with the margin you want.
Cost per successful delivery
₹73.37
36.8 of 40 attempts succeed each day
- Daily cost
- ₹2,700
- Cost per attempt
- ₹67.50
- Added by failed attempts
- ₹5.87 per delivery
- Cost per km
- ₹38.57
- Break-even fee
- ₹73.37
- Fee for a 20% margin
- ₹91.71
Cost per successful delivery
₹73.37
How it is worked out
Failed attempts cost almost as much as successful ones, so the day’s cost is shared by the deliveries that succeed.
- Daily cost (₹)
- = driver pay + vehicle EMI or rent + maintenance and insurance + fuel or charging + tolls and parking + overhead
- Successful deliveries
- = attempts × (100% − failed attempts %)
- Cost per successful delivery (₹)
- = daily cost ÷ successful deliveries
- Cost per km (₹)
- = daily cost ÷ km driven in the day
- Fee for a margin (₹)
- = cost per successful delivery ÷ (100% − margin %)
Margin is a share of the fee, not a mark-up on the cost: with a 20% margin, a fifth of every fee is left after costs. A 0% margin gives the break-even fee.
Worked example
The example values the calculator opens with, worked through step by step. Cost per successful delivery: ₹73.37.
| Step | Working | Result |
|---|---|---|
| Daily cost | ₹900 + ₹700 + ₹150 + ₹600 + ₹100 + ₹250 | ₹2,700 |
| Successful deliveries | 40 attempts × (100% − 8% failed) | 36.8 |
| Cost per successful delivery | ₹2,700 ÷ 36.8 | ₹73.37 |
| Cost per km | ₹2,700 ÷ 70 km | ₹38.57 |
| Fee for a 20% margin | ₹73.37 ÷ (100% − 20%) | ₹91.71 |
What it leaves out
A calculator answers the question it is given. These are the things to add, or check, yourself.
- Returns, cash on delivery handling and payment gateway fees.
- The second attempt of a failed delivery: it lands on the day it is tried again, as one more attempt.
- GST and other taxes on your fee.
- Days the vehicle stands idle. Enter a typical working day.
Questions
What is cost per delivery?
What it costs to complete one delivery: everything a vehicle and its driver cost in a day, divided by the deliveries that succeeded that day.
Why divide by successful deliveries and not attempts?
A failed attempt still costs fuel, time and pay but earns nothing. Dividing by attempts would make each delivery look cheaper than it is. The calculator shows both, and the difference is what failures add to each delivery.
How is the fee for a margin worked out?
The fee is the cost per successful delivery divided by (100% minus the margin). At a 0% margin that is the break-even fee; at a 20% margin a fifth of the fee is left after costs.
What goes into overhead?
The costs of running deliveries that no single vehicle carries: dispatch staff, the office, software and phones. Split the monthly total across your vehicles and working days.
Plan the routes, dispatch the work and see what each route costs.
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