---
title: "Price Calculation Methods"
description: "Calculation methods are the different ways the system determines the final price of a shipment. Each method uses different logic based on the…"
url: https://sistrack.com/en/docs/pricing/metodos-de-calculo/
category: pricing
section: docs
updated: 2026-07-28
---


*Markdown version for agents. This page on the web: https://sistrack.com/en/docs/pricing/metodos-de-calculo/*


# Price Calculation Methods


## 🎯 What Are Calculation Methods?

Calculation methods are the different ways the system determines the final price of a shipment. Each method uses different logic based on the package's characteristics and your business needs.

## 📊 Available Methods

### 1️⃣ Fixed Price (Flat Rate)

#### How does it work?
A single price regardless of the package's weight, size, or contents.

#### Example:
- **Envelopes and documents**: $5 always
- **Small box**: $10 always
- **Local express service**: $25 always

#### Advantages:
✅ Simple for the customer to understand
✅ Easy to manage
✅ Fast to quote
✅ Predictable for budgets

#### Disadvantages:
❌ Can lose money on heavy packages
❌ Can be expensive for light items
❌ Doesn't adjust to real transport cost

#### Ideal for:
- 📄 Documents
- 📦 Standardized products
- 🏃 Urban express services
- 💼 High-volume corporate customers

### 2️⃣ Price by Weight

#### How does it work?
The price is calculated by multiplying the package's weight by a per-kilogram (or per-pound) rate.

#### Basic formula:
```
Price = Weight × Rate per kg
```

#### Full example:
**Configuration**:
- Base price: $3
- Price per kg: $2
- Minimum billable weight: 1 kg

**Calculations**:
- 0.5 kg package → Charged as 1 kg → $3 + (1 × $2) = **$5**
- 5 kg package → $3 + (5 × $2) = **$13**
- 10 kg package → $3 + (10 × $2) = **$23**

#### Variant: Tiered Rates

Different prices depending on weight ranges:

| Range | Price |
|-------|--------|
| 0-5 kg | $10 |
| 5-10 kg | $18 |
| 10-20 kg | $30 |
| 20-50 kg | $50 |
| +50 kg | $75 |

**Example**:
- 7 kg package → Falls in the 5-10 kg range → **$18**
- 55 kg package → Falls in the last tier → **$75**

> Each tier carries a **total price**, not an additional per-kilo price. To leave the last tier open ("50 kg and above"), leave its maximum weight blank.
>
> A package that weighs exactly a tier's starting weight **doesn't fall into it yet**. With the table above, exactly 5 kg is charged in the 0-5 kg range.

#### Advantages:
✅ Fair and proportional
✅ Covers transport costs
✅ Flexible with different configurations
✅ Industry standard

#### Disadvantages:
❌ Requires weighing every package
❌ Harder to explain
❌ Can be expensive for heavy items

#### Ideal for:
- 📦 General merchandise
- 🏭 Industrial shipments
- 🛒 Varied e-commerce
- 📮 Traditional parcel delivery

### 3️⃣ Price by Volume (Volumetric Weight)

#### How does it work?
Considers the space the package takes up, not just its weight. Useful for large but lightweight packages.

#### Formula:
```
Volumetric Weight = (Length × Width × Height) ÷ Volumetric Factor
```

The system compares the real weight with the volumetric one and **charges the greater**. We call that resulting weight the **billable weight**.

> **Important**: the by-volume method doesn't have its own prices. When configuring it, you choose an existing **by-weight price template**, and the system uses it to price the billable weight. That's why you need at least one weight template created before you can create a by-volume rate.

#### Practical example:
**Configuration**:
- Volumetric factor: 5000
- Selected weight template, with price per kg: $3

**Package**: Box of 50×40×30 cm, real weight 3 kg

**Calculation**:
1. Volume = 50 × 40 × 30 = 60,000 cm³
2. Volumetric weight = 60,000 ÷ 5000 = 12 kg
3. Comparison: Real (3 kg) vs Volumetric (12 kg)
4. Charged by: 12 kg
5. Final price = 12 × $3 = **$36**

#### Common Volumetric Factors:
- **5000**: Ground transport
- **6000**: Sea transport
- **4000**: Air express transport

#### Advantages:
✅ Fair to the carrier
✅ Optimizes use of space
✅ International standard
✅ Avoids losses on bulky packages

#### Disadvantages:
❌ Complex to explain to the customer
❌ Requires measuring every package
❌ Can be expensive for bulky items

#### Ideal for:
- 🎈 Inflatable products
- 🪑 Light furniture
- 📦 Large boxes with little weight
- ✈️ Air shipments

## 🔄 Combinations and Special Cases

### Each rate uses a single method
A rate is configured with **one** calculation method and always uses it. The system doesn't change methods based on the package.

If you want the same service to be charged differently depending on the shipment, the way to do it is to create **several rates for the same route and service**, with different priority numbers and weight or size limits. The system will try the lowest-priority one first and, if the package doesn't fit its limits, move to the next.

### Base Price + Variable
Combines a fixed cost with a variable one:
- **Base**: $5 (handling and processing)
- **Variable**: $2 per kg
- **Total**: $5 + (weight × $2)

The per-unit price only applies when the weight **doesn't fall into any tier**. If you configure tiers, the tier price replaces the per-unit calculation and is added to the base price.

### Minimum Billable Weight
You can set a minimum weight that's billed even if the package weighs less. With a 1 kg minimum, a 200 g envelope is billed as 1 kg.

In the by-volume method there can be **two minimums**: the weight template's and the volumetric calculation's own. When that happens, **the greater of the two** applies.

### Templates Are Shared
The by-weight price configuration (base price, per-unit price, and tiers) lives in a **template** that can be reused across several rates.

> ⚠️ Editing a template changes **every** rate that uses it, including by-volume rates that have it selected. Check how many are using it before touching it.

### Kilograms and Pounds
Each rate has its own unit. If the shipment's weight arrives in a different unit, the system converts it before calculating and before checking the rate's limits.

## 📈 Comparative Examples

### Case 1: 200g Document

| Method | Calculation | Price |
|--------|---------|--------|
| Fixed Price | Flat rate | $5 |
| By Weight | 1 kg minimum × $3 | $3 |
| By Volume | Not applicable | $3 |

**Best option**: By weight (cheapest)

### Case 2: Normal 5kg box, 30×20×15cm

| Method | Calculation | Price |
|--------|---------|--------|
| Fixed Price | Flat rate | $25 |
| By Weight | 5 kg × $3 | $15 |
| By Volume | (30×20×15)÷5000 = 1.8 kg | $15 |

**Best option**: By weight (fairest)

### Case 3: Large light box, 2kg, 60×50×40cm

| Method | Calculation | Price |
|--------|---------|--------|
| Fixed Price | Flat rate | $25 |
| By Weight | 2 kg × $3 | $6 |
| By Volume | (60×50×40)÷5000 = 24 kg × $3 | $72 |

**Best option**: Fixed price (for the customer) / Volume (to cover costs)

## 🎯 How to Choose the Right Method

### Analyze Your Operation

**If your shipments are:**
- ✉️ Mostly documents → **Fixed Price**
- 📦 Varied weights → **By Weight**
- 🎈 Large but light → **By Volume**
- 🔄 Very varied → **Combine methods**

### Consider Your Costs

**Fixed Price** if:
- Your costs are predictable
- Volume justifies averaging
- You want operational simplicity

**By Weight** if:
- Weight impacts your costs
- You need precision on margins
- It's the standard in your industry

**By Volume** if:
- You use air transport
- Space is your constraint
- You handle bulky products

### Think About Your Customers

**For End Customers**:
- Prefer **fixed price** (simplicity)
- Understand **by weight** (familiar)
- Get confused by **volume** (complex)

**For Businesses**:
- Accept any method
- Prefer the cheapest one
- Value transparency

## 🛠️ System Configuration

### For Fixed Price:
1. Select "Flat Rate"
2. Enter the single amount
3. Optionally, set weight/size limits
4. Save the configuration

### For Price by Weight:
1. Select "By Weight"
2. Define:
   - Base price (optional)
   - Price per kg
   - Minimum billable weight
3. If using tiers, configure each range
4. Save the configuration

### For Price by Volume:
1. Select "Volumetric"
2. Define:
   - Volumetric factor (e.g., 5000)
   - Price per volumetric kg
   - Whether combined with real weight
3. Save the configuration

## 💡 Tips and Strategies

### To Maximize Profits:
1. **Analyze your historical shipments**
   - What's the average weight?
   - What's the average volume?

2. **Calculate your break-even point**
   - Real transport cost
   - Desired margin
   - Competitive price

3. **Offer multiple options**
   - The customer chooses based on their need
   - You cover every scenario

### To Simplify Operations:
1. **Start with fixed price**
   - Simplest to implement
   - Easy to communicate

2. **Evolve gradually**
   - Add by-weight as you grow
   - Implement volume if you need it

3. **Automate the calculation**
   - The system decides the method
   - Always applies the right one

## ⚠️ Common Mistakes to Avoid

### ❌ Not accounting for minimum weight
**Problem**: You lose money on small shipments
**Solution**: Always set a billable minimum

### ❌ Incorrect volumetric factor
**Problem**: Uncompetitive prices or losses
**Solution**: Use the standard factor for your industry

### ❌ Not updating prices
**Problem**: Margins eroded by inflation
**Solution**: Review and adjust quarterly

### ❌ Excessive complexity
**Problem**: Confused customers, operational errors
**Solution**: Keep it simple, add complexity gradually

## 📊 Real Case Study

**Company**: QuickShip Express
**Situation**: Migrating from fixed price to a mixed system

### Before (Fixed Price Only):
- Envelopes: $5
- Small box: $10
- Large box: $20
- **Problem**: Lost money on heavy large boxes

### After (Mixed System):
- **Documents**: Fixed price $5
- **Packages < 5kg**: By weight ($2/kg)
- **Packages > 5kg**: By volume where applicable
- **Result**: 15% more profitable

## 🎓 Summary

| Method | Best for | Complexity | Precision |
|--------|------------|-------------|-----------|
| **Fixed Price** | Simplicity | ⭐ | ⭐⭐ |
| **By Weight** | Balance | ⭐⭐ | ⭐⭐⭐ |
| **By Volume** | Optimization | ⭐⭐⭐ | ⭐⭐⭐⭐ |

## 🚀 Next Step

Now that you know the calculation methods:
1. Define your pricing strategy
2. Review [Practical Examples](/en/docs/pricing/ejemplos-practicos/)
3. Check the [FAQ](/en/docs/pricing/preguntas-frecuentes/)

---
*Questions about which method to use? Our team can help you choose the best one for your business.*