Royal Mail's Business Price Guide, effective from 1 July 2026, prices 1st and 2nd Class exactly the same way no matter where in the UK you're sending — the cost is driven entirely by format, weight and how you pay for postage. And that last part matters more than most sellers realise: the same parcel can cost noticeably different amounts depending on whether you're buying a stamp, paying online, franking with a Mailmark machine, or running an Account.
Letters: the one format where payment method barely matters
For a standard Letter up to 100g, the gap between payment methods is small. 1st Class is £1.80 whether you buy a stamp, pay online, or use a standard Account rate, dropping only slightly to £1.77 on Mailmark franking or a negotiated Account rate. 2nd Class runs 91p across stamp, online and standard Account, or 88p on franking and negotiated Account rates. At this format, the saving from switching payment method is a matter of pence.
Large Letters: where the gap starts to open up
Large Letters (up to 750g) show a clearer split. At 100g, 1st Class costs £3.30 by stamp, £3.20 online, and as little as £2.86 on Mailmark franking or a negotiated Account rate — a standard Account rate sits at £3.00. By 750g, 1st Class stamp and online prices converge at £3.30, while franking and negotiated Account rates hold at £3.30 too. 2nd Class Large Letters run from £1.55 (100g, stamp or online) up to £2.70 (750g, stamp or online), with franking and negotiated Account rates running slightly lower throughout — £1.52 up to £2.50.
Small Parcels: a consistent 30p saving
For a Small Parcel up to 2kg, the pattern simplifies: 1st Class is £5.45 by stamp or Mailmark franking, £5.15 online or on standard Account — a flat 30p saving for using online postage or an Account over buying a stamp. 2nd Class follows the same shape: £4.25 by stamp or franking, £3.95 online or Account.
Medium Parcels: the saving scales with weight
Medium Parcels (2kg, 10kg and 20kg tiers) show the clearest payment-method saving of any format. At 2kg, 1st Class is £8.05 by stamp or franking versus £7.35 online or Account — a 70p difference. At 10kg it's £10.05 versus £9.35. At 20kg it's £15.45 versus £14.75. 2nd Class mirrors the same 70p gap at every tier: £6.95/£6.25 at 2kg, £8.75/£8.05 at 10kg, £13.15/£12.45 at 20kg. For a business sending parcels regularly, that gap compounds fast — moving from stamps to online or Account postage on Medium Parcels alone is worth roughly £0.70 per item.
Why Mailmark franking tracks stamp prices for parcels but Account prices for letters
One quirk worth knowing: Mailmark franking prices match the cheaper Account/online rate for Letters and Large Letters, but match the more expensive stamp rate for Small and Medium Parcels. If your business sends mostly parcels rather than letters, a franking machine alone won't get you the best available rate — an Account, covered in our franking machine vs Click & Drop comparison, is worth checking against your actual format mix rather than assuming franking is always cheapest.
These prices are exempt from VAT — but only in this table
1st and 2nd Class prices across stamp, online, franking and Account channels are all exempt from VAT under Royal Mail's Universal Postal Service Provider status — worth remembering when comparing against tracked or guaranteed services, several of which are charged VAT at the standard rate depending on how they're purchased.
Frequently asked questions
Is online postage always cheaper than a stamp for 1st and 2nd Class? Based on the July 2026 price guide, yes for Large Letters, Small Parcels and Medium Parcels — online and standard Account rates are consistently equal to or cheaper than stamp prices at every weight band above a basic Letter, where the two are identical.
Do these prices apply to Click & Drop purchases? Click & Drop postage generally tracks the online price guide rather than the separate Business Account price guide — worth checking the specific rate showing at purchase rather than assuming it matches the Account figures here.
How often does Royal Mail change these prices? Royal Mail's own price guide states that prices are "subject to revision from time to time" and recommends checking royalmail.com/current-postage-prices for up-to-date figures — these July 2026 figures are correct as published but worth reconfirming before relying on them for long-term cost planning.
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