The last mile is the final leg, from the depot to the customer’s door. Enter what a route costs, or any other period: the driver, the vehicle, its fixed costs and anything else. The calculator adds them up and divides by the successful deliveries, because a failed attempt costs as much as any other and earns nothing. It also gives the cost per attempt, the cost of failed attempts, the cost per parcel and per mile, and flags an hourly cost below the National Living Wage. On the vehicle side you can use your own cost per mile or HMRC’s approved mileage rates.
Pick the period
A route, a day, a week or a month: any period works, as long as every figure covers the same one. Enter the delivery attempts, failures included, then the failed delivery rate if you know it (nobody in, address not found, parcel refused).
Count the vehicle
Enter the miles driven, back to the depot included, and your cost per mile: fuel or charging, tyres and servicing. Costs that do not depend on miles, such as the lease or depreciation and insurance, go in the vehicle’s fixed costs. If you would rather use HMRC’s approved mileage rate, choose it instead: it is meant to cover buying and running the vehicle, so leave the fixed costs empty.
Count the driver
Choose how the driver is paid: by the hour, per successful delivery or a flat fee. For an employee, use the full cost to the employer (wage, employer National Insurance, holiday pay and pension), not the take-home pay. Tolls, parking, congestion or clean air zone charges and routing software go in other costs.
Read the result
The cost per successful delivery leads. Below it come the cost per attempt and the cost of failed attempts when a failure rate is entered, the cost per parcel when a delivery carries more than one, and the cost per mile. Copy the workings, export them as a CSV file or save them to Priostack.
Total cost = driver + vehicle (miles × cost per mile, or HMRC’s rate) + vehicle fixed costs + other costs.
Successful deliveries = attempts × (100% − failed delivery rate).
Cost per successful delivery = total ÷ successful deliveries; cost per attempt = total ÷ attempts; cost of failed attempts = total × failed delivery rate; cost per parcel = total ÷ (successful deliveries × parcels per delivery); cost per mile = total ÷ miles.
Each cost is rounded to the nearest penny, halves rounded up; the total is the sum of the rounded costs.
Example: a route of 100 delivery attempts
Of 100 attempts, 6% fail, leaving 94 successful deliveries. The driver works 9 hours 30 minutes at £16.40 an hour, which is £155.80. The van covers 80 miles at £0.52 a mile, £41.60, plus £38.00 a day for the lease and insurance, and £15.00 of parking and charges. Total cost: £250.40. The cost per successful delivery is £250.40 ÷ 94 = £2.66, against £2.50 per attempt. Failed attempts cost £250.40 × 6% = £15.02, and the route costs £3.13 a mile. With HMRC’s rate instead, a courier who has already driven 9,950 business miles this tax year counts 50 miles at £0.55 and 30 at £0.25, which is £35.00 for the vehicle.