Business tool
Delivery Fee and Commission Calculator
Work out what a delivery order earns after distance-tier fees, commission, rider payout and payment costs, with a per-order breakdown and monthly totals.
Free, no sign-up. Runs in your browser; nothing is uploaded.
The order
0 to switch off.
Distance tiers
Order shares are normalised, so they do not have to add up to 100.
Commission, rider pay and costs
Charged to the restaurant or shop.
One order, 3.5 km
- Order value
- $25.00
- Delivery fee
- $2.50
- Service fee
- $0.50
- Customer pays
- $28.00
- Restaurant or shop receives
- $20.00
- Platform commission (20%)
- $5.00
- Rider payout
- $2.60
- Payment processing
- $1.11
- Platform keeps (net)
- $4.29
Per month, 4,500 orders
| Band | Orders | Net |
|---|---|---|
| 0-2 km | 1,575 | $6,804 |
| 2-5 km | 2,025 | $8,687 |
| 5-8 km | 900 | $4,086 |
Each band is priced at its middle distance. Platform net = commission + delivery and service fees - rider payouts - payment costs.
How to use the delivery fee and commission calculator
The money in one delivery
Every delivery order moves money in four directions. The customer pays the order value plus a delivery fee and sometimes a service fee. The restaurant or shop receives the order value minus the platform's commission. The rider is paid for the trip. A payment processor takes a share of what the customer paid. What is left is the platform's net. This calculator lays that out line by line.
Set up the order
Enter a typical order value and the delivery distance. If you offer free delivery above a certain basket size, enter that value; use zero to switch it off. Add a customer service fee if you charge one.
Build your distance tiers
Distance tiers keep pricing simple for customers. A starting set might be up to 2 km, up to 5 km and up to 8 km, each with its own fee. For each tier also enter what percentage of your orders fall in it. The shares only need to be relative; the tool balances them.
Commission and rider pay
Enter the commission percentage charged to merchants, rider base pay per order and rider pay per kilometre. Add the payment fee percentage and fixed fee your processor charges on the customer's total.
Read the two results
- One order shows the exact flow of money for the distance you chose.
- Per month shows order value, commission, fees, rider payouts, payment costs and platform net, plus the net from each distance band.
Ways to improve margin
- Raise the fee on the longest tier before touching the short ones.
- Set a minimum order so that tiny baskets stop losing money.
- Replace flat rider pay with distance-based pay to match cost.
- Encourage larger baskets with a free-delivery threshold slightly above your average order.
Change one number at a time and watch the net per order; it shows quickly which lever matters.
Frequently asked questions
How does the distance-tier fee work?
Each tier has an upper distance and a fee. An order uses the first tier that covers its distance. Beyond the last tier, the tool applies the last fee and warns you, so you know to add another band.
Who pays the commission?
In this model the restaurant or shop pays it as a percentage of the order value, and the customer pays the delivery and service fees on top. If your business differs, set the commission to zero and fold the cost into the fees.
How is the monthly total calculated?
Orders per day times operating days gives monthly orders. They are split across your tiers by the share you enter, and each tier is priced at its middle distance. Totals are the sum across tiers.
Why can the platform lose money on short orders?
Rider pay has a base amount per trip, and payment costs have a fixed part. On small orders with a low delivery fee these fixed costs can exceed what you take in, which is why many platforms add a small service fee or a minimum order.
Does free delivery affect my profit?
Yes. When the order value passes the free-delivery threshold, the customer fee drops to zero while the rider is still paid, so the platform margin shrinks. Compare results with the threshold on and off.