PackToolbox
Allocation calculator

Freight Cost Allocation Calculator

Allocate a shipment-level freight cost across three product groups using quantity, weight, volume or value as the allocation basis.

ItemQtyWeightVolumeValueAllocated costShare

Choose the allocation basis deliberately

Weight and volume often reflect transport usage better than quantity, while value-based allocation can be useful for some accounting policies. The calculator does not decide which method is appropriate for your business.

Worked example

With 3,000 of freight allocated by weight across groups weighing 1,000, 600 and 400 units of weight, the groups receive 50%, 30% and 20% of the freight cost respectively.

Frequently asked questions

Which allocation basis should I use?

That depends on the purpose of the analysis and your accounting policy. Weight or volume can approximate transport usage, while quantity or value may suit other internal allocation methods.

Does this replace an accounting policy?

No. It is a calculation aid. Use the allocation method required by your organization, accountant or reporting standard.