Production Cost per Recipe Calculator
Unit cost per recipe and suggested price by margin.
Use the employee cost calculator
Materials: 69 % of the cost
Before VAT: $ 83.327
- Materials (with waste)
- $ 31.435
- Labor
- $ 5.000
- Packaging
- $ 6.000
- Overhead
- $ 3.395
- Profit per unit
- $ 37.497
- Batch cost (30 units)
- $ 1.374.894
Short answer:a product's production cost is the sum of its materials (including waste), direct labor, packaging and a share of overhead. The selling price that keeps your margin iscost ÷ (1 − margin): with a cost of $40,000 and a 40% margin, the price before VAT is $66,667.
It works for made-to-order manufacturing, flower shops, bakeries, clothing, cosmetics or any product you assemble from a recipe or bill of materials. The default values are an example of a flower arrangement.
When to use this tool
- When launching a new product or quoting a special order.
- When the price of a key input goes up.
- To know what an arrangement, a garment or a batch costs.
- When checking whether your current prices cover labor.
How to calculate production cost
- 1Enter each material in the recipe with its quantity per unit, its cost and the waste percentage.
- 2Add the labor minutes per unit and the cost per hour.
- 3Add packaging and a percentage of overhead (rent, utilities, tools).
- 4Enter the margin you want to earn and check the suggested price with and without VAT.
Made-to-order production connected to inventory
In Katuq, when an order moves to production, the raw materials in the recipe are deducted and the finished product is added to inventory. That way you know how much material you have left before accepting the next order, without doing the math by hand.