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Effective rate calculator
Put a headline incentive, a minimum net charge, this week’s fuel and the surcharges that sit outside the discount on one package, and see the discount you actually earn.
Source: FedEx published list rates, fuel index and 2026 surcharge amounts · Free, no signup
| Line | At list | Your net | Discount earned |
|---|---|---|---|
| Transportation, 5 lb zone 5 (minimum charge applies) | $18.53 | $10.50 | 43.3% |
| Fuel at 29.8%, applied to the net | $5.51 | $3.12 | 43.3% |
| Residential charge, $6.95 on 60% of packages | $4.17 | $4.17 | 0.0% |
| Delivery area surcharge on 21% of packages | $1.21 | $1.21 | 0.0% |
| Per package | $29.42 | $19.00 | 35.4% |
The same 5 lb package across the zones
| Zone | List | Net transportation | Earned on transportation | All in | Earned all in |
|---|---|---|---|---|---|
| 2 | $14.06 | $10.50 * | 25.3% | $19.00 | 19.6% |
| 3 | $15.62 | $10.50 * | 32.8% | $19.00 | 25.9% |
| 4 | $17.06 | $10.50 * | 38.5% | $19.00 | 30.9% |
| 5 | $18.53 | $10.50 * | 43.3% | $19.00 | 35.4% |
| 6 | $19.26 | $10.50 * | 45.5% | $19.00 | 37.4% |
| 7 | $20.47 | $10.50 * | 48.7% | $19.00 | 40.5% |
| 8 | $21.69 | $10.50 * | 51.6% | $19.00 | 43.3% |
* the minimum net charge is billing this package, so the incentive earns less than its headline. List rates are the FedEx Ground and Home Delivery table effective January 5, 2026. The fuel default is the FedEx Ground percentage for the week of September 28, 2026; fuel is applied after the discount, so a better incentive does not reduce it in proportion. The residential charge is $6.95, FedEx's 2026 figure, and the delivery area amounts are the 2026 published ones; the default share to surcharge ZIPs, 21%, is the share of U.S. addresses on the lists, not your share. Surcharges are shown outside the incentive because that is where most agreements leave them, and where the next negotiation should start. Earned-discount tiers, accessorial incentives and dimensional rules are not modelled here; they are what a review of your agreement is for.
See your effective discount from your own invoices.
Send your agreement and twelve months of invoices. We will calculate the discount actually earned by service, zone and weight, show where the minimum and the surcharges take it back, and tell you what to negotiate.
What is effective rate calculator?
The effective discount on a parcel is what remains of the headline incentive once the minimum net charge, fuel and surcharges have been billed. The incentive applies to the published transportation rate only. A minimum net charge overrides it on light packages, so a 55% incentive can earn 30% on a 1 lb zone 2 package. Fuel is a percentage of the net rate, applied after the discount. Residential and delivery area surcharges are usually outside the incentive entirely, so on a package that carries both, the discount earned on the whole line can be half the headline.
Review the terms behind your shipping costs.
We negotiate carrier agreements and check invoices against them. Our fees are based on recovery or documented savings, and the initial review is free.
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Free, and no obligation. A written evaluation back inside 48 hours. No fee unless we find documented savings. How we handle your documents
- Your current agreement, any carrier
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