UPS vs FedEx Overnight Cost Calculator
UPS Overnight is an express parcel service that guarantees next‑business‑day delivery within the United States, typically by 10:30am or 12:00pm depending on the destination. It competes head‑to‑head with FedEx Overnight, which promises similar next‑day delivery windows and a nationwide network of hubs. Both services are part of larger logistics giants-UPS and FedEx-that operate in more than 200 countries. The question most shippers ask is simple: which one will cost less for the same package?
Quick Take
- Base rates are usually a few cents per pound cheaper with UPS for <10lb packages.
- FedEx often wins on small, lightweight parcels because its fuel surcharge is lower.
- Dimensional weight pricing can flip the balance; FedEx tends to be cheaper for bulky, light‑weight boxes.
- Cut‑off times and “guaranteed delivery” windows affect the true cost more than the headline price.
- Use the comparison table below to model your own shipment and spot the cheaper option.
How Overnight Rates Are Built
Both carriers calculate the final charge by adding several components together. Understanding each piece helps you predict which service will be cheaper for a specific shipment.
- Base Rate - A per‑pound price that varies by shipping zone (the distance between origin and destination). UPS publishes a slightly lower per‑pound rate for most zones, especially in the Midwest and South.
- Fuel Surcharge - A percentage added to the base rate that reflects current fuel prices. UPS uses the UPS Fuel Surcharge Index while FedEx relies on the FedEx Fuel Factor. In 2025 the UPS surcharge hovers around 10% and FedEx around 8%.
- Dimensional (DIM) Weight - Calculated as (length×width×height)÷139 for both carriers (in inches). The higher of actual weight or DIM weight is used for billing. FedEx’s DIM divisor is slightly more generous for “large‑light” packages, making it cheaper when the package is bulky but under 2lb.
- Additional Fees - Residential delivery, Saturday service, and special handling can add $3‑$7 per shipment. UPS tends to charge extra for residential deliveries, whereas FedEx often bundles it into the base rate.
- Delivery Guarantee - Both companies offer a money‑back guarantee if they miss the promised window. The fine print can affect cost if you need extra insurance or a higher‑value guarantee.
Side‑By‑Side Cost Comparison
| Factor | UPS Overnight | FedEx Overnight |
|---|---|---|
| Base Rate (per lb, Zone 2‑4) | $8.45 | $8.70 |
| Fuel Surcharge | 10% | 8% |
| DIM Divisor | 139 | 139 (FedEx applies a 10% discount on DIM‑weight calculations for >2lb packages) |
| Residential Delivery Fee | $3.25 | $2.50 (included in base for most zones) |
| Saturday Delivery | $15.00 | $12.00 |
| Cut‑off Time (major metros) | 5:00pm local | 4:30pm local |
| Average Cost per lb (10lb, residential) | $98.12 | $97.84 |
Numbers above are based on the carriers’ 2025 published rate guides and assume a standard 10‑lb package shipped from a commercial origin to a residential address. Your actual cost may differ because of discounts, contract rates, or special services.
Real‑World Scenarios
Let’s walk through a few common shipping situations. Plug the numbers into the table and see who wins.
- Scenario1 - Small electronics (2lb, 6"×4"×2")
UPS Overnight: Base=2lb×$8.45=$16.90; Fuel=$1.69; Residential=$3.25 → Total≈$21.84.
FedEx Overnight: Base=2lb×$8.70=$17.40; Fuel=$1.39; No extra residential fee → Total≈$18.79. FedEx is cheaper by $3.05. - Scenario2 - Clothing bundle (12lb, 18"×14"×10")
UPS Overnight: Base=12lb×$8.45=$101.40; Fuel=$10.14; Residential=$3.25 → $114.79.
FedEx Overnight: Base=12lb×$8.70=$104.40; Fuel=$8.35; Residential fee included → $112.75. FedEx still wins, but the gap narrows. - Scenario3 - Bulky, lightweight (5lb, 24"×18"×12")
DIM weight = (24×18×12)÷139 ≈37lb. Both carriers bill 37lb.
UPS: 37lb×$8.45=$312.65; Fuel=$31.27; Residential=$3.25 → $347.17.
FedEx: 37lb×$8.70=$321.90; Fuel=$25.75; No residential fee → $347.65. UPS edges out by a few cents.
These examples illustrate why there is no universal answer. The cheaper carrier flips depending on weight, size, and address type.
Tips to Keep Overnight Costs Down
- Measure accurately. A 1‑inch error can add dozens of pounds of DIM weight.
- Consolidate shipments. If you can combine orders into a single box, the per‑pound cost drops dramatically.
- Choose the right service level. UPS offers a “Next Day Air Saver” that delivers by end‑of‑day for a lower rate; FedEx’s “Standard Overnight” is often cheaper than the premium “Priority Overnight”.
- Negotiate contract rates. High‑volume shippers can lock in lower base rates and reduced fuel surcharges.
- Leverage third‑party shipping platforms. Tools like ShipStation or ShipBob aggregate discounts from both carriers, automatically picking the cheaper option for each package.
Related Concepts and Alternatives
While UPS and FedEx dominate the overnight market, it’s worth knowing about other players that sometimes undercut the big two.
- DHL Express is a global carrier that offers a “DHL Express 9:00” service for time‑critical parcels, typically priced higher but with broader international coverage.
- USPS Priority Mail Express provides overnight delivery to most U.S. addresses for a flat rate (around $30‑$45) and includes residential delivery at no extra charge.
- ShipperHQ is a shipping rate engine that can compare UPS, FedEx, DHL, and USPS in real time, showing the cheapest option before checkout.
Exploring these alternatives can further reduce costs, especially for low‑weight or international shipments.
Next Steps for Shippers
- Gather the dimensions and weight of the typical package you ship.
- Use the comparison table to calculate a baseline cost for both UPS and FedEx.
- Check your account’s contract rates; apply any volume discounts.
- Run a pilot test: ship ten identical boxes with each carrier and record the final invoice amounts.
- Choose the carrier that consistently gives the lower total after fees, or set up an automated rule in your shipping software to pick the cheapest on a per‑order basis.
By following this process you’ll avoid the guesswork and ensure you’re always paying the lowest possible rate for overnight delivery.
Frequently Asked Questions
Is UPS Overnight always cheaper than FedEx Overnight?
No. The cheaper option depends on weight, size, address type, and any negotiated discounts. For light, compact parcels FedEx often wins, while UPS can be cheaper for heavier or bulkier items.
How does dimensional weight affect overnight pricing?
Both carriers bill the greater of actual weight or dimensional (DIM) weight. DIM weight is calculated as (L×W×H)÷139 (in inches). If your package is large but light, DIM weight can dramatically increase the charge, sometimes flipping which carrier is cheaper.
Do fuel surcharges change often?
Fuel surcharges are updated monthly based on the U.S. Energy Information Administration’s diesel price data. In 2025 UPS’s surcharge hovers around 10% while FedEx’s stays near 8%. Check the carriers’ rate guides each month for the latest percentages.
Is residential delivery always extra with UPS?
Typically, UPS adds a residential surcharge (around $3‑$4). FedEx usually incorporates residential delivery into its base rate for most zones, making it cheaper for door‑to‑door shipments.
Can I get a price guarantee for overnight shipments?
Both UPS and FedEx offer a money‑back guarantee if they miss the promised delivery window. The guarantee applies only to standard overnight services (not Saturday or same‑day options) and may be limited to shipments under a certain value.
