3PL vs In-House Logistics Calculator — Outsource vs Build Decision
Compare the true cost of 3PL outsourcing vs building in-house logistics. Find the order volume break-even and which model is cheaper at your scale.
Quick answer: 3PL is typically cheaper under 500–1,000 orders/day. Above that, in-house often becomes more economical — but requires capital, management, and time to build.
🏗️ 3PL vs In-House Logistics Cost Calculator
Pick + pack + handling (excl. outbound shipping)
Rent + staff salaries + WMS + equipment
Packaging + variable labour above base headcount
Cost Comparison
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3PL Monthly Cost
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In-House Monthly Cost
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How to Use This Calculator
- Enter monthly orders and 3PL rate — get quotes from 2–3 3PLs in your region.
- Build in-house cost fully — rent, all warehouse staff, WMS, equipment, utilities, and management. Under-estimate and you'll regret the decision.
- Factor capital cost — in-house requires $50K–$500K+ in buildout — add annual amortisation to your fixed cost estimate.
Worked Example
5,000 orders/month. 3PL $4.50/order + $2,200 storage. In-house $18K fixed + $1.80 variable.
- 3PL monthly: $24,700 ($4.94/order)
- In-house monthly: $27,000 ($5.40/order)
- Winner: 3PL saves $27,600/year
- Break-even: ~8,000+ orders/month
Frequently Asked Questions
Receiving $0.50–$1.50/carton. Storage $10–$25/pallet/month. Pick + pack $1.50–$4.00/order + $0.25–$0.75/item. Total: $3–$8 per order for typical e-commerce.
WMS software, racking and equipment capital, workers' comp insurance, HR overhead, turnover cost, and management time on warehouse operations vs core business.