LTL or parcel: which costs less?
Parcel cost is your rate per carton times the cartons, or each carton’s billable weight times your rate per pound, where billable weight is the greater of the actual weight and length × width × height ÷ the carrier’s divisor. LTL cost is your quote for the shipment, or your rate per 100 lb times the total weight with pallets, never less than the minimum charge. The lower total wins, and the break-even is the carton count where the two cross.
Parcel
$396.00
20 parcels at 22 lb billable each, 440 lb in all
Your parcel rate
Your cartons
LTL freight is cheaper by
$180
With these cartons and rates, LTL is cheaper from 8 cartons up.
Example values, rates included; replace them with yours.
LTL freight
$216.00
1 pallet, 480 lb, about 8.0 lb per cubic foot: estimated class 100
Your LTL rate
How the comparison works
- Parcel: each carton is billed on its own. With a rate per pound, its billable weight is the greater of its actual weight and its dimensional weight, length × width × height ÷ the divisor, each rounded up to the next whole number.
- Pallets: cartons stay upright on a 48 × 40 inch pallet in the pattern that fits the most per layer, stacked to your height limit counting a 6-inch deck. Check the stack in 3D with the pallet calculator.
- LTL: your quote for the shipment, or your rate per 100 lb times the cartons’ weight plus the pallets’, but no less than your minimum charge.
- The calculator compares the two totals, then repeats the sums for every carton count from 1 to 10,000 to find where the cheaper option flips.
Parcel: 20 × 22 lb × $0.90 = $396.00. LTL: 480 lb ÷ 100 × $45.00 = $216.00
The freight class shown is an estimate from density: weight with pallets divided by the pallets’ cubic feet, read off the NMFC 13-band scale. Test other pallet builds in the freight class calculator, and see how carriers bill each box in the dimensional weight calculator.
A flat LTL quote is for one shipment, so the break-even with a quote assumes the price holds at other carton counts. Ask your carrier before you rely on it. When you’re ready to book, request a freight quote, or see how we handle wholesale and B2B fulfillment for retail and pallet orders.
The same cartons at other counts
| Cartons | Parcel | Pallets | LTL |
|---|---|---|---|
| 1 | $19.80 | 1 | $150.00 |
| 5 | $99.00 | 1 | $150.00 |
| 10 | $198.00 | 1 | $150.00 |
| 20 | $396.00 | 1 | $216.00 |
| 40 | $792.00 | 2 | $432.00 |
| 80 | $1,584.00 | 4 | $864.00 |
| 160 | $3,168.00 | 7 | $1,710.00 |
Common questions
When is LTL cheaper than parcel shipping?
When the cartons’ combined parcel charges pass what the LTL carrier charges for the whole shipment. Each parcel is billed on its own, so parcel cost climbs with every carton, while an LTL shipment starts at the carrier’s minimum charge and grows with total weight. Enter your own rates: the calculator shows the carton count where the cheaper option flips.
How do I work out a per-hundredweight LTL charge?
Divide the shipment’s total weight, pallets included, by 100 and multiply by the rate per hundredweight. A 480 lb shipment at $45 per 100 lb is 4.8 × $45 = $216. If the result is below the carrier’s minimum charge, you pay the minimum. Your carrier or broker sets the rate; this calculator doesn’t publish any.
How does the calculator estimate freight class?
It divides the shipment’s weight, pallets included, by the pallets’ volume in cubic feet, deck included, and reads the class off the National Motor Freight Traffic Association’s 13-band density scale in effect since July 19, 2025. Items with special handling, stowability or liability characteristics can take a different class, so check your item’s NMFC entry before you book.
What is billable weight for a parcel?
Carriers bill the greater of a box’s actual weight and its dimensional weight: length × width × height in inches divided by a divisor. The calculator rounds each side and the result up to the next whole number. The divisor box starts at 139 as an example; use the one in your carrier agreement.
How many cartons fit on one pallet?
The calculator keeps cartons upright on a 48 × 40 inch pallet, tries both ways of turning them plus mixed patterns, and stacks layers until the next one would pass your height limit, counting a 6-inch pallet deck. The pallet calculator shows the same stack in 3D.
Can Fulfillment Hub USA ship my freight?
Freight and shipping support is part of Fulfillment Hub USA’s services, along with B2B and wholesale fulfillment, from five U.S. warehouses. Ask for a freight quote with your cartons, pallets and destinations.
Sources
- NMFTA: Decoding density (the 13-subprovision density scale)
- NMFTA: NMFC changes in effect July 19, 2025
- FedEx: What is dimensional weight?
Checked 2026-10-30. Rules change; confirm with the carrier or agency before you rely on a number.
More shipping and inventory tools
Shipping pallets and parcels from one place?
Tell us your cartons, order volume and where your B2B and retail customers are, and we’ll quote fulfillment and freight support together.