Calculator Inputs
Example Data Table
| Item | Example Value |
|---|---|
| Weekly Shipments | 120 |
| Working Weeks | 50 |
| Published Rate Per Shipment | $18.75 |
| Current Discount | 22% |
| Proposed Discount | 31% |
| Current Fuel Surcharge | 14% |
| Proposed Fuel Surcharge | 11% |
| Current Accessorial Cost | $4.80 |
| Proposed Accessorial Cost | $3.20 |
| Current Claims Cost | $6,200.00 |
| Proposed Claims Cost | $2,900.00 |
| Illustrative Ongoing Annual Savings | $41,271.25 |
Formula Used
Annual Shipments = Weekly Shipments × Working Weeks
Net Base Rate = Published Rate × (1 − Discount %)
Fuel Cost Per Shipment = Net Base Rate × Fuel Surcharge %
Total Cost Per Shipment = Net Base Rate + Fuel Cost + Accessorial Cost + Minimum Charge Impact
Current Annual Spend = (Annual Shipments × Current Cost Per Shipment) + Current Claims Cost + Current Invoice Fees
New Annual Spend = (Annual Shipments × Proposed Cost Per Shipment) + Proposed Claims Cost + Proposed Invoice Fees − Annual Rebates
Ongoing Annual Savings = Current Annual Spend − New Annual Spend
First-Year Net Savings = Current Annual Spend − (New Annual Spend + Implementation Cost)
Savings Percentage = Ongoing Annual Savings ÷ Current Annual Spend × 100
Payback Months = Implementation Cost ÷ (Ongoing Annual Savings ÷ 12)
How to Use This Calculator
- Enter your average weekly shipment volume.
- Add the number of active shipping weeks each year.
- Type your average published transportation rate.
- Enter current and proposed contract discounts.
- Fill fuel surcharge percentages for both scenarios.
- Add per-shipment accessorial and minimum charge impacts.
- Include annual claims, invoice fees, rebates, and setup cost.
- Click Calculate Savings to view results, graph, CSV, and PDF export options.
FAQs
1. What does this calculator estimate?
It estimates how much a shipper could save by improving contract discounts, fuel terms, accessorial costs, claims exposure, rebates, and administrative fees across a full year.
2. Why use the published rate as the starting point?
Many carrier agreements apply discounts against a published transportation rate. Starting there helps compare current and proposed terms using one consistent pricing base.
3. What are accessorial costs?
Accessorial costs are extra shipping charges. Examples include residential delivery, address corrections, delivery area surcharges, peak fees, and signature requirements.
4. Should rebates be entered as positive numbers?
Yes. Enter annual rebates or credits as positive values. The calculator subtracts them from the proposed annual spend automatically.
5. What is first-year net savings?
First-year net savings includes one-time implementation cost. It shows whether the new agreement still delivers value after transition expenses.
6. Can this calculator support parcel and freight reviews?
Yes. It works for parcel, courier, and many freight review scenarios if your inputs represent average costs and annual operating assumptions accurately.
7. Why include claims and invoice fees?
These costs affect total contract value. Better carrier performance and cleaner billing can improve savings beyond simple discount changes.
8. How should I validate the final result?
Compare the calculator output with real carrier invoices, weekly shipment reports, surcharge files, and claims history. Better source data produces better negotiation targets.