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Unit Cost Calculator

Free unit cost calculator: turn material, labor and overhead into cost per unit and a selling price with your target margin.

How the unit cost calculator works

Enter the total material, labor and overhead for a production batch, the number of units made and your target margin to get cost and price per unit.

Formula

Cost per unit = (materials + labor + overhead) ÷ units. Selling price = cost ÷ (1 − margin%).

Worked example

Example: 4,000 materials + 1,500 labor + 500 overhead = 6,000 for 1,000 units, so cost is 6.00. At a 25% margin the price is 8.00.

FAQ

Should overhead be included in unit cost?

Yes. Including overhead gives a full cost per unit, so your margin is real and not overstated.

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For information only – not financial, tax or legal advice. See our disclaimer.

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