Franking Machine vs Stamps: How Much Do You Save in 2026?
A franking machine saves you money on almost every letter you send, because Royal Mail charges a lower Mailmark franking rate than the equivalent stamp price. In 2026 the headline saving is 3p on a standard First Class letter (£1.77 franked versus £1.80 by stamp) and up to 44p on a First Class large letter (£2.86 franked versus £3.30 by stamp). The more post you send, and the more large letters in your mix, the faster those pennies turn into meaningful annual savings.
Updated for October 2026: from 5 October 2026 Royal Mail raises stamp prices on parcels while holding every Mailmark franking price. Franking now saves on parcels as well as letters, which was not previously the case. Full tables are in our October 2026 price update.
The short answer: franking is cheaper than stamps in 2026
Since the Royal Mail price change took effect on 7 April 2026, businesses that frank their mail pay less per item than businesses that stick stamps on. The discount exists because Mailmark franking is cheaper for Royal Mail to process, and that efficiency is passed on to you at the point of posting. A Mailmark compliant franking machine unlocks the lowest published rates, so if you are comparing options it is worth making sure any machine you choose is Mailmark ready.
The saving per item looks small in isolation, but post is a volume game. A company sending even a modest daily batch will find the discounts add up across a year, and the biggest wins come on large letters rather than standard letters.
2026 franking discounts on letters and large letters
Here is how the 2026 Royal Mail stamp prices compare with the discounted Mailmark franking rates on the most common business formats. All standard Royal Mail retail postage is exempt from VAT, so the prices below are what you actually pay. These letter and large letter prices are not changing on 5 October 2026.
| Format (weight) | Service | Stamp price | Mailmark franking | You save |
|---|---|---|---|---|
| Letter (0 to 100g) | First Class | £1.80 | £1.77 | 3p |
| Letter (0 to 100g) | Second Class | 91p | 88p | 3p |
| Large Letter (0 to 100g) | First Class | £3.30 | £2.86 | 44p |
| Large Letter (101 to 250g) | First Class | £3.60 | £3.28 | 32p |
| Large Letter (0 to 100g) | Second Class | £1.55 | £1.52 | 3p |
| Large Letter (251 to 500g) | Second Class | £2.40 | £2.30 | 10p |
You can cross-check these against the official Royal Mail 2026 prices and our own 2026 postage rates update.
Parcels: the picture changes on 5 October 2026
Until 5 October 2026, parcels were the one format where franking gave you nothing back. A 1st Class small parcel cost £5.45 whether you franked it or stamped it, so the franking advantage applied only to letters and large letters.
From 5 October 2026 Royal Mail raises parcel stamp prices while leaving the Mailmark franked prices untouched, which creates a saving that did not exist before:
| Parcel (weight) | Service | Stamp price | Mailmark franking | You save |
|---|---|---|---|---|
| Small Parcel (0 to 2kg) | First Class | £5.90 | £5.45 | 45p |
| Small Parcel (0 to 2kg) | Second Class | £4.60 | £4.25 | 35p |
| Medium Parcel (0 to 2kg) | First Class | £8.70 | £8.05 | 65p |
| Medium Parcel (10 to 20kg) | First Class | £16.90 | £15.45 | £1.45 |
| Medium Parcel (10 to 20kg) | Second Class | £14.20 | £13.15 | £1.05 |
That works out at 7.3% to 8.6% off parcel postage from 5 October 2026.
Where the biggest savings hide: large letters
Most people assume the standard letter is where a franking machine earns its keep, but the 3p discount on a First Class letter is actually the smallest saving on the table. The real value sits in the large letter category. A First Class large letter up to 100g costs £3.30 by stamp but only £2.86 franked, a difference of 44p on a single item.
If your outgoing post includes invoices, statements, brochures, contracts or anything in an A4 or A5 envelope, you are very likely posting large letters without labelling them that way. Sorting your mail by format so that large letters are franked at the correct rate is one of the quickest ways to cut your postage bill, and a franking machine weighs and rates each item for you so you are never guessing.
How the savings add up over a year
Per-item pennies become real money once you multiply by volume. Consider a small business that sends around 50 First Class letters every working day. At a 3p saving per item, that is £1.50 a day, roughly £7.50 a week, and close to £390 across a typical working year. That is on standard letters alone.
Now picture an accountancy practice, a solicitor or a supplier that posts 20 First Class large letters a day. At 44p saved per item, that is £8.80 a day, about £44 a week, and well over £2,000 a year. From 5 October 2026 parcels add to that figure too: ten 1st Class small parcels a day saves a further £1,125 a year. The exact figure depends on your mix of formats and services, but the principle holds. If you want to model your own numbers, our sister site offers a free franking savings calculator.
Savings beyond the per-item discount
The postage discount is the headline, but it is not the only way a franking machine trims costs. Franked mail carries your business name and logo in the impression, which looks more professional than a stamp and saves on separately printed return addresses. You also avoid trips to the Post Office and the queues that go with them, because you weigh, rate and frank in-house and hand a sealed batch straight to Royal Mail.
There is a control benefit too. You only ever pay for the exact postage each item needs, so there is no rounding up to the next stamp value and no drawer full of odd denominations. Running costs stay low as long as you keep genuine franking machine ink topped up and use the correct franking labels for items you cannot feed through the machine directly. Buying those supplies from a specialist such as our franking machine labels and ink range keeps consumable costs predictable.
Do the savings outweigh the cost of a machine?
Whether franking pays for itself depends on your volume. A franking machine has a cost to buy or lease, plus consumables, so a business posting only a handful of letters a week may not recover that outlay through postage discounts alone. As a rough rule of thumb, the more items you send and the higher the proportion of large letters and parcels, the sooner the machine pays for itself.
If you already own a machine, the maths is simpler still: every item you frank rather than stamp is money back in your pocket, so the priority is making sure the machine is Mailmark compliant and that your consumables are always ready to go. Stocking the right ink and labels for your specific model avoids downtime that would otherwise push you back towards stamps.
Frequently Asked Questions
How much cheaper is franking than stamps in 2026?
On a standard First Class letter you save 3p (£1.77 franked versus £1.80 by stamp). On a First Class large letter up to 100g you save 44p (£2.86 versus £3.30). Second Class letters save 3p (88p versus 91p). Parcels cost the same either way until 5 October 2026, after which franking saves between 35p and £1.45 per parcel.
Are parcel prices cheaper when franked?
Yes, from 5 October 2026. Until that date small and medium parcels cost the same whether you frank or stamp them. From 5 October Royal Mail raises the parcel stamp price while holding the Mailmark franked price, so franking saves between 35p and £1.45 per parcel, which is 7.3% to 8.6%.
Are 1st and 2nd Class stamp prices going up in October 2026?
No. A 1st Class letter stays at £1.80 and a 2nd Class letter stays at 91p. Large letter stamp prices are unchanged too. Only parcel stamps and the tracked and guaranteed services are rising on 5 October 2026.
Do I need to update my franking machine for the October 2026 change?
No. Because Mailmark franking prices are not changing, there is no new tariff to download. The rates your machine loaded on 7 April 2026 remain correct.
Do I pay VAT on franked postage?
No. Standard Royal Mail retail postage is exempt from VAT, so the franking and stamp prices quoted are the amounts you actually pay. This applies to both First and Second Class letters and large letters.
Why is franked mail cheaper than a stamp?
Mailmark franking gives Royal Mail cleaner data and a machine-readable barcode, which makes the mail cheaper to sort and process. Royal Mail passes that efficiency back to franking machine users as a lower published rate than the equivalent stamp.
Which mail format saves the most with a franking machine?
Large letters. A First Class large letter up to 100g saves 44p per item, compared with just 3p on a standard letter. From 5 October 2026 a medium parcel up to 20kg saves £1.45, which is the largest single per-item saving of all.
Do I need a Mailmark machine to get the discounted rates?
Yes. The lowest published franking prices are the Mailmark rates, so you need a Mailmark compliant franking machine to access them. Older non-Mailmark meters are being phased out, so a Mailmark ready machine is the sensible choice for any business buying or upgrading today.