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Effective shipping discount calculator for FedEx Ground
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 · FedEx Standard List Rates and 2026 surcharge amounts, effective January 5, 2026; fuel for the week of September 28, 2026 · 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%, on transportation and surcharges | $7.02 | $4.63 | 34.0% |
| Residential charge, $6.45 on 60% of packages | $3.87 | $3.87 | 0.0% |
| Delivery area surcharge on 21% of packages | $1.21 | $1.21 | 0.0% |
| Per package | $30.63 | $20.21 | 34.0% |
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% | $20.21 | 18.6% |
| 3 | $15.62 | $10.50 * | 32.8% | $20.21 | 24.7% |
| 4 | $17.06 | $10.50 * | 38.5% | $20.21 | 29.6% |
| 5 | $18.53 | $10.50 * | 43.3% | $20.21 | 34.0% |
| 6 | $19.26 | $10.50 * | 45.5% | $20.21 | 36.0% |
| 7 | $20.47 | $10.50 * | 48.7% | $20.21 | 39.0% |
| 8 | $21.69 | $10.50 * | 51.6% | $20.21 | 41.8% |
* 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 charged on the net transportation charge and on the surcharges, so a better incentive lowers fuel dollars but never the fuel percentage itself. The residential charge is $6.45, FedEx's 2026 figure for Ground and Home Delivery, 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.
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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, surcharges and fuel have been billed. The incentive applies to the published transportation rate only. A minimum net charge overrides it on light packages, so with a $10.50 minimum a 55% incentive earns 12.4% on a 1 lb zone 2 package. Fuel is a percentage of the net transportation charge and most surcharges, so it follows them rather than diluting the discount itself. 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.
Worked example
A 20 lb zone 5 residential package to a delivery area ZIP code lists at $27.47. A 55% incentive bills $12.36, but the $6.45 residential charge and the $6.60 delivery area surcharge are billed at list, and fuel at 29.75% is charged on all three. The line costs $32.97 against $52.57 at list: 37.3% earned on a 55% incentive.
Published rates, not your agreement
One published table, FedEx Ground and Home Delivery, with one incentive applied evenly. Fuel is applied to transportation and to the residential and delivery area surcharges, which are treated as undiscounted. Earned-discount tiers, accessorial incentives, dimensional weight and peak surcharges are not modelled.
Source: FedEx published list rates, fuel index and 2026 surcharge amounts. FedEx Standard List Rates and 2026 surcharge amounts, effective January 5, 2026; fuel for the week of September 28, 2026.
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