Freight Cost Per Unit Calculator
A shipment's freight cost broken down to the pallet, the carton and the unit — allowing for pallets that are not full — with what a full load would cost per unit and how much the empty space is costing.
Freight is bought by the pallet or the container, but sold by the unit.
How the freight cost per unit calculator works
Freight is bought by the pallet or the container, but sold by the unit. Divide the shipment cost by the pallets, the pallets into cartons and the cartons into units, and the freight per unit appears. Pallets that are 80% full cost the same to move as full ones, so the per-unit cost rises by a quarter — and that, not the carrier's rate, is usually the cheapest thing to fix.
Formula: per unit = (shipment + handling) / (pallets × cartons per pallet × units per carton × fill)
Worked examples
| Inputs | Freight cost per unit | Note |
|---|---|---|
| A 26-pallet load at 85% fill | 0.2998 | about 0.26 a unit |
| Full pallets | 0.2548 | 15% cheaper per unit |
| A part load | 0.4412 | three times the rate |
FAQFrequently asked questions
How do I work out freight per unit?
Total cost of the shipment, including handling, divided by the units actually on it. Count what is really there, not the nominal capacity.
Why does fill matter so much?
Because the truck costs the same whether the pallets are full or not. Every point of fill lost is a point added to the per-unit cost.
What counts as handling?
Forklift time, dock fees, wrapping, labelling — at both ends. It is small per pallet and large per year, and often left out of the quote.
What share of value is normal?
Two to five per cent for dense, high-value goods; ten or more for bulky, cheap ones. Above that, freight is shaping the price and the packaging should be redesigned.
Should I compare carriers on the rate?
On cost per unit delivered. A cheaper rate with a smaller pallet count or worse damage is not cheaper.
Where these figures come from
- Nakajima (1988) — Introduction to TPM — the origin of Overall Equipment Effectiveness and its six big losses
- Health and Safety Executive — the UK workplace safety regulator
Last checked: September 2026. Definitions follow standard operations-management practice; where plants commonly differ, the page says so.