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3PL cost calculator

Turn a 3PL rate card into a monthly bill. Enter your order volume and the fees from your quote, and the calculator shows the total, the cost per order with and without postage, and which line is driving the bill. Everything runs in your browser and nothing you type is sent to us.

Calculator

The prefilled numbers are a worked example, not market rates. Replace them with the rates on your 3PL quote or invoice.

Order volume
Fees charged per order
The postage the 3PL bills you, after any discount it passes on.
Storage and receiving each month
Monthly fees and minimum
Account management, software, integration or returns fees billed monthly.
Enter 0 if your contract has no minimum.

Have a monthly number? Compare it with real prices: request quotes from 3PLs that fit your volume (no account needed).

What this calculator works out

A 3PL quote is a rate card: a price per order, per unit, per pallet and per hour. What you actually need to know is the monthly bill and what each order costs you once storage, receiving and the account minimum are spread across your volume. This calculator multiplies each rate by your volume, adds the lines up, applies the minimum, and divides by your order count.

It shows the cost per order two ways. With postage included, it is the number to compare with your margin. Without postage, it is the warehouse cost you are really comparing between 3PLs, because shipping rates depend on carrier, zone and parcel weight more than on the warehouse.

The formula

  1. Pick and pack = orders × pick and pack fee per order.
  2. Additional units = orders × (average units per order − 1) × fee per additional unit.
  3. Packaging = orders × packaging cost per order.
  4. Storage = units of storage used (pallets, cubic feet or bins) × monthly storage rate.
  5. Receiving = pallets, cartons or hours received × receiving rate.
  6. Shipping = orders × average shipping label cost.
  7. Minimum top-up = the monthly minimum − the fees that count toward it, or zero if the fees already exceed it. Postage counts toward the minimum only if you tick the box.
  8. Total per month = all of the lines above plus other monthly fees.
  9. Cost per order = total per month ÷ orders. Per order excluding postage = (total − shipping) ÷ orders.

Worked example

A store ships 1,000 orders a month with 1.5 units per order. Its quote charges $3.00 to pick and pack an order, $0.80 for each additional unit, $0.50 for packaging, $25 per pallet per month for 12 pallets, $40 per pallet to receive 3 pallets a month, and an average $8.50 label. The account minimum is $2,500 a month on warehouse fees only.

  • Pick and pack: 1,000 × $3.00 = $3,000
  • Additional units: 1,000 × 0.5 × $0.80 = $400
  • Packaging: 1,000 × $0.50 = $500
  • Storage: 12 × $25 = $300
  • Receiving: 3 × $40 = $120
  • Warehouse fees: $4,320, above the $2,500 minimum, so no top-up
  • Shipping: 1,000 × $8.50 = $8,500

The total is $12,820 a month, or $12.82 per order. Without postage the warehouse cost is $4.32 per order. At 300 orders a month the warehouse fees fall to $1,590, the minimum adds a $910.00 top-up, and the same contract costs $16.83 per order.

Using it to compare 3PL quotes

  • Run every quote at the same order volume and units per order, and again at your slowest month. Minimums and storage hit hardest when volume drops.
  • Ask each provider what counts toward the minimum, how storage is measured (pallet positions, cubic feet or bins) and whether receiving is billed per pallet, carton or hour.
  • Compare the per order cost excluding postage first, then ask for shipping rates by zone and weight for your real parcel profile.
  • Fees this calculator leaves out, such as setup, kitting, returns processing or peak surcharges, can go in other monthly fees as a monthly average.

To collect quotes in a format you can compare line by line, send providers our free 3PL RFP template.

Frequently asked questions

What fees make up a 3PL bill?

Most rate cards charge for receiving inbound stock, storing it, picking and packing each order, packaging materials and shipping labels. Many add a fee per additional unit, a monthly account or software fee, and a monthly minimum. Providers name these lines differently, so map each line on your quote to one input here.

Why is the cost per order higher at low order volume?

Storage, account fees and the monthly minimum do not fall when you ship fewer orders, so they are spread over fewer orders. In the worked example the same contract costs $12.82 per order at 1,000 orders a month and $16.83 per order at 300 orders, because the $2,500 minimum adds a $910.00 top-up at the lower volume.

How does a 3PL monthly minimum work?

If the fees you are billed in a month add up to less than the minimum, the 3PL charges the difference as a top-up. Contracts differ on whether postage counts toward the minimum. Leave the postage box unticked if your contract applies the minimum to warehouse fees only, and tick it if shipping counts.

Should shipping be included in my cost per order?

Look at both numbers. Postage is often the largest line and depends on carrier, zone, weight and the rates the 3PL passes on to you, while the warehouse fees are what you are really comparing between providers. The calculator shows cost per order with postage and without it.

How do I compare a pallet quote with a cubic-foot quote?

Convert one into the other using your real pallet size. A 40 x 48 inch pallet stacked 60 inches high holds 40 x 48 x 60 / 1,728 = 66.7 cubic feet, so a cubic-foot rate times 66.7 gives a rough per-pallet equivalent. Pallets that are not full make the cubic-foot quote look cheaper than it will be in practice if the 3PL bills pallet positions.

Is this a quote from a 3PL?

No. It is arithmetic on the rates you type in, and the prefilled numbers are an example, not market rates. Use it to check a quote you have or to compare two quotes side by side.

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