A franking machine vs stamps calculator compares the total cost of sending business post using a franking machine against purchasing Royal Mail stamps, factoring in postage volume, item types, and equipment rental costs. Franking saves between 10p and 45p per item compared to standard stamps — a first-class large letter costs £1.55 with a stamp but approximately £1.10 when franked, a saving of 29% per item. However, franking machines carry monthly rental costs of £15 to £50 depending on speed and features, meaning the cost savings only outweigh the rental once a business sends roughly 30 or more items per week. For a business posting 100 letters and 50 large letters per week, franking delivers annual savings of approximately £2,500 compared to stamps. This calculator determines your precise breakeven point and projected annual savings based on your actual mailing volumes and item mix.
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How to Use This Calculator
Enter your weekly posting volumes — input the number of standard letters, large letters, and small parcels you send each week.
Select your posting class — choose first class, second class, or a mix to calculate accurate stamp and franking rates.
Enter your franking machine rental cost — input the monthly rental quote you have received, or use the default of £25 per month.
Review the cost comparison — see your annual cost with stamps vs franking, the breakeven point in items per week, and your projected annual saving.
Royal Mail’s franking discounts vary significantly by letter size. Standard letters save just 3p each, making franking hard to justify on standard mail alone. Large letters save 14p–50p each, which is where the real value lies for most businesses.
Franking Machine vs Stamp Prices: 2025/26 Comparison
Royal Mail’s current Mailmark franking rates are £1.67 for 1st Class (vs £1.70 stamp) and 84p for 2nd Class (vs 87p stamp). Large letter discounts are more substantial: £2.65 franked vs £3.15 stamped for 1st Class Large, saving 50p per item.
These discounts apply because Royal Mail offers Mailmark account holders preferential rates versus over-the-counter stamp prices. Franking machines access these rates automatically through a connected Royal Mail meter account.
How Many Letters Do You Need to Send to Justify a Franking Machine?
The break-even point depends heavily on what you send. For standard letters alone, the 3p saving means you would need to send over 800 letters per month to cover a £25/month machine rental — making franking impractical for standard mail only. For large letters, the picture is very different.
The break-even calculation is straightforward: divide the monthly machine rental by the saving per letter.
- 1st Class Large Letter (basic machine £25/mo): £25 ÷ 50p saving = 50 large letters/month to break even
- 2nd Class Large Letter (basic machine £25/mo): £25 ÷ 14p saving = 179 large letters/month to break even
- Standard letters only (basic machine £25/mo): £25 ÷ 3p saving = 834 letters/month — rarely worth it for standard mail alone
Most businesses send a mix of standard and large letters. A business sending 100 large letters and 200 standard letters per month would save around £56/month in postage on 1st Class — enough to cover a basic machine rental with savings left over.
Types of Franking Machine: Rental, Lease, and Purchase
Most UK businesses rent or lease a franking machine rather than buying outright. Entry-level machines start at £25/month; mid-range at £40/month; high-volume at £65/month. All machines use the same Royal Mail Mailmark technology for up-to-date postage rates.
Key features by tier:
- Basic (£25–£30/month): 30–150 letters per day capacity. Single-user. Neopost IN-360, Pitney Bowes SendPro C models. Suitable for offices sending under 50 letters/day.
- Mid-range (£35–£50/month): 150–350 letters per day. Often includes integrated weighing scale for accurate postage. Suitable for most small and medium businesses.
- High-volume (£65–£120/month): 350–800+ letters per day. Automatic letter feed, high-speed processing. Suitable for direct mail campaigns, fulfilment operations.
All Royal Mail-approved machines now use the Mailmark standard, which automatically downloads the latest postage rates. This eliminates the need to manually update rates when Royal Mail changes prices.
Alternatives to Franking Machines
Royal Mail Click & Drop offers similar discounts to franking for occasional users — you print your own labels at home or office without a machine rental. It is most cost-effective for businesses sending under 100 items per month or those with irregular posting patterns.
The main alternatives:
- Royal Mail Click & Drop: Print postage labels online at franking rates. No monthly rental. Best for irregular posting. Requires a printer and labels.
- Integrated shipping software: Platforms like Royal Mail OBA (Online Business Account) or Parcel2Go allow bulk postage buying at business rates without a physical machine
- Postage meter services: Some suppliers offer pay-per-use machines with no fixed monthly cost, billed purely on volume
Franking saves 3p per standard letter and up to 50p per large letter versus stamps. Standard-letter-only businesses rarely break even on machine rental. The real value is in large letters: sending 50+ large 1st Class items per month covers a basic £25/month rental, with savings of £300-£900 per year beyond that.
Franking vs Stamps Savings: Common Volumes
The table shows annual savings from franking versus buying stamps at common posting volumes, using Royal Mail 2025/26 Mailmark rates.
| Mail Type & Volume | Stamp Cost/yr | Franking Cost/yr | Rental Cost/yr | Net Saving/yr |
|---|---|---|---|---|
| 200/mo standard (2nd class) | £2,088 | £2,016 | £300 | £-228 |
| 200/mo standard (1st class) | £4,080 | £4,008 | £300 | £-228 |
| 200/mo large (1st class) | £7,560 | £6,360 | £300 | £900 |
| 200/mo large (2nd class) | £3,720 | £3,384 | £300 | £36 |
| 500/mo mixed* | £8,772 | £7,896 | £360 | £516 |
| 1,000/mo mixed* | £17,544 | £15,792 | £360 | £1,392 |
*Mixed = 60% standard 2nd class, 20% large 1st class, 20% large 2nd class. Rental assumed at £25/month (basic) or £30/month (mid-range for 500+ volumes). Source: Royal Mail Mailmark price guide, effective October 2025.
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