Courier vs Employee Delivery Cost Calculator — Last-Mile Build vs Buy
Compare the true cost of in-house delivery vs third-party courier. Find your break-even volume and the cheapest option at your delivery scale.
Quick answer: In-house delivery is cheaper above ~35–50 stops/day when fully loaded with driver cost, vehicle, insurance, and admin. Below this, third-party courier is usually cheaper and more flexible.
🏎️ Courier vs Employee Delivery Cost Calculator
Fully loaded: wage + payroll taxes + benefits
Depreciation + insurance + fuel + maintenance
Dispatcher, admin, routing software
Cost Comparison
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In-House Cost/Stop
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Courier Cost/Stop
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How to Use This Calculator
- Enter daily stops and courier rate — get courier quotes from local services, DoorDash Drive, Roadie, or last-mile platforms.
- Load in-house cost fully — driver wages + payroll taxes + benefits, vehicle depreciation, insurance, fuel, maintenance, and management.
- Factor peak flexibility — couriers scale with demand; in-house requires overtime or temp hire at peak.
Worked Example
40 stops/day, $8.50 courier, $195 driver, $75 vehicle, $30 management.
- In-house/stop: $300 ÷ 40 = $7.50
- Courier/stop: $8.50
- Annual saving: $1/stop × 40 × 250 = $10,000
Below ~35 stops/day at these costs, courier wins. And courier handles your 56-stop peak days for free — no overtime or temp hire.
Frequently Asked Questions
Payroll taxes (7.65%), workers' comp (3–6%), vehicle insurance ($3–6K/year), GPS/routing software, uniforms, management overhead, and accident liability. These add 40–60% to the raw driver wage.
Generally when volume is consistent at 35+ stops/day, you need branding/experience control, or courier quality is unacceptable. Start courier, bring in-house when volume and density justify it.