The temperature setting is measured at the WH. Perhaps the temperature in your home today results in a 5-degree loss when reaching the far end, but 2 months from now, the home interior could be warmer and so that might result in only a 3-degree loss. Unless the sensor is located at the far end of the plumbing run, it can't know the actual temperature there.
Since you know there is currently a 5-degree difference, the best 'calibration' you can do is simply set the water temperature 5-degrees higher than desired. If you later add pipe insulation and then find there is only a 2-degree difference, you can then reset the temperature setting for only 2-degrees higher than desired.