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Cost analysis

A Practical Formula for Delivery Route Cost

MileCut Team
7 min read
21.6%
of EU heavy-goods vehicle kilometres were empty journeys in 2024, according to Eurostat.
In short: add driver time, fuel or electricity, distance-based vehicle cost, failed-delivery cost and allocated overhead. Divide the total by completed stops and compare similar working days.
Track these first
  • Cost per completed stop
  • Cost per route hour
  • Kilometres per completed stop
  • First-attempt delivery success

Empty distance deserves attention

Eurostat reports that empty journeys represented 21.6% of vehicle kilometres for EU-registered heavy goods vehicles in 2024, based on the countries included in the dataset. The figure covers larger freight vehicles and gives useful context for road transport. Light delivery vans and individual fleets can have very different patterns.

For a local delivery operation, record kilometres before the first completed stop, between stops and after the final stop. This shows where distance supports a delivery and where the plan can be reviewed.

Build the cost from five inputs

  1. Driver time: full hourly employment cost multiplied by route hours.
  2. Fuel or electricity: measured consumption multiplied by the price paid.
  3. Vehicle cost: maintenance, tyres, depreciation or lease cost expressed per kilometre.
  4. Failed deliveries: repeat attempts, returns and customer support.
  5. Allocated overhead: dispatch, software and shared operating costs assigned with one consistent method.
Working formula
Route cost = driver time + fuel or energy + distance-based vehicle cost + failed-delivery cost + allocated overhead

Divide by completed work

Total route cost rises with the amount of work. Track cost per completed stop, kilometres per completed stop and completed stops per route hour. Label cancelled orders and failed attempts consistently so each week uses the same definition.

Build a fair baseline

Compare the same depot, a similar service area, vehicle type and day of week. Record road closures, severe weather and seasonal peaks. Use several normal weeks as the baseline. Keep the number of orders and completed stops beside every result.

Where MileCut fits

MileCut imports delivery stops, organises them into routes and shows planned distance and duration. Those figures support a before-and-after comparison. Payroll, fuel invoices, vehicle costs and failed-delivery costs stay in your operating worksheet.

Sources and further reading

Any change shown by this method depends on your baseline and operating conditions. MileCut does not guarantee a fixed saving.

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