Product cost calculator (cost per unit)
Find the real cost of each product you make. Add the materials for a batch, the time it takes, your overhead and packaging, and get the cost per unit, plus the wholesale and retail prices for the margin you want.
Help: how to use it and FAQ
How to use it
- You enter the data
- Smallo works it out
- You get the result
- Add the materials for one batch and how many units the batch makes.
- Enter the labor hours, hourly wage, overhead and packaging.
- Read the cost per unit and the suggested wholesale and retail prices.
Frequently asked questions
What goes into the cost of a product?
Materials, the labor to make it (even your own time, at a fair hourly wage), a share of overhead like rent, tools and utilities, and packaging. Leaving out labor or overhead is the most common pricing mistake.
What is the difference between markup and margin?
Margin is the share of the selling price that is profit. A 50% margin on a $10 cost means a $20 price. Markup is profit compared with cost: the same $20 price is a 100% markup.
How do wholesale and retail prices relate?
Stores usually double the wholesale price to set their retail price (keystone pricing). Make sure your wholesale price covers your cost and profit, so you can sell to stores and still earn.