Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Total packaging cost per order
$1.545
Base material cost (before reserve)
$1.500
Monthly packaging spend
$61,800
Annual packaging spend
$741,600
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How to use this
- 1Enter carton cost ($).
- 2Enter void fill / dunnage cost ($).
- 3Enter tape / closure cost ($).
- 4Enter label + inserts cost ($).
- 5Enter damage-in-transit reserve (%).
- 6Enter monthly order volume.
- 7Read your total packaging cost per order on the right — it updates as you type.
- 8Hit Share to keep the scenario or send it to someone.
About this calculator
Packaging materials are a per-order variable cost that's easy to underestimate because each component looks cheap individually — a carton, some void fill, a strip of tape, a label — but multiplied across tens of thousands of monthly orders it becomes a real margin driver. This calculator sums carton cost, void fill/dunnage cost, tape and closure cost, and label/insert cost per order, then applies a damage-in-transit reserve percentage to account for the cost of items that arrive damaged and require replacement packaging and reshipment. Right-sizing cartons is usually the biggest lever here: an oversized box needs more void fill to prevent shifting and often triggers dimensional weight freight charges on top of the wasted material cost, so packaging cost and freight cost should be reviewed together, not in isolation.
Worked example
Using the values the calculator loads with:
Inputs
- Carton cost: 0.85 $
- Void fill / dunnage cost: 0.35 $
- Tape / closure cost: 0.12 $
- Label + inserts cost: 0.18 $
- Damage-in-transit reserve: 3 %
- Monthly order volume: 40000
Results
- Total packaging cost per order: $1.545
- Base material cost (before reserve): $1.50
- Monthly packaging spend: $61,800
- Annual packaging spend: $741,600
What each field means
Inputs
- Carton cost ($)
- The carton cost used in the calculation, measured in $. Starts at 0.85 $ so you have a working example on load.
- Void fill / dunnage cost ($)
- The void fill / dunnage cost used in the calculation, measured in $. Starts at 0.35 $ so you have a working example on load.
- Tape / closure cost ($)
- The tape / closure cost used in the calculation, measured in $. Starts at 0.12 $ so you have a working example on load.
- Label + inserts cost ($)
- The label + inserts cost used in the calculation, measured in $. Starts at 0.18 $ so you have a working example on load.
- Damage-in-transit reserve (%)
- The damage-in-transit reserve used in the calculation, measured in %. Starts at 3 % so you have a working example on load. Accepted range: 0–20 %.
- Monthly order volume
- The monthly order volume used in the calculation. Starts at 40000 so you have a working example on load.
Results
- Total packaging cost per order
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Base material cost (before reserve)
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Monthly packaging spend
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Annual packaging spend
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Why does carton size matter beyond the box cost itself?
An oversized carton needs more void fill to stop the item shifting in transit, weighs more once filled, and can trigger dimensional weight pricing from parcel carriers that charges by cubic size rather than actual weight. A right-sizing program that matches carton to order size can cut both packaging spend and outbound freight spend simultaneously, often by 10-20% of freight cost on affected orders.
What's a reasonable damage reserve percentage?
For durable, well-packaged goods shipped parcel, 1-3% is typical. Fragile items, glass, or freight-class LTL shipments with more handling touches often run 4-8%. Track actual damage claims and returns coded as 'arrived damaged' over a quarter to set this input from real data instead of a guess.
Should packaging cost be billed separately in a 3PL quote?
Most 3PLs pass through packaging materials as a separate line item, either at cost-plus or a flat per-order packaging fee, rather than bundling it into the pick-and-pack labor rate. Keeping it separate makes it easier for the client to see the impact of their own packaging spec choices, like requiring branded boxes or extra protective packaging.
How much can bulk purchasing reduce these costs?
Carton and void fill costs typically drop 15-25% when moving from small-quantity purchasing to full-truckload corrugate orders or annual supply contracts. For a 40,000-order-per-month operation, that's often a five-figure annual savings, so revisit packaging supplier contracts at least annually as volume grows.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Dunnage & Packaging Cost Per Order Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/dunnage-packaging-cost
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/dunnage-packaging-cost" target="_blank" rel="noopener">Dunnage & Packaging Cost Per Order Calculator — RevenueLab</a> (2026).</p>
Source: [Dunnage & Packaging Cost Per Order Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/dunnage-packaging-cost) (2026).