Free calculator
Unit Cost Calculator
Type what one unit costs you in materials, labor and packaging, then your selling price and fee rate. The calculator gives the unit cost, the profit each sale keeps, the margin and, if you add your stock count, the money tied up in that item. Free, no sign-up.
- Selling price$0
- Unit cost$0
- Fees$0
- Profit per unit$0
- Stock value at cost (0 units)$0
How it works
Unit cost is materials plus labor plus packaging and other costs for one unit. Labor is what making one unit costs in time, whether you pay yourself or a helper; type 0 to leave it out, but the profit then includes your own pay.
Fees are the selling price times your fee rate: marketplace, payment and card fees as one share of the price. Profit per unit is the price less the unit cost less the fees. The margin is that profit as a share of the price.
Stock value at cost is the units on hand times the unit cost: the money you have already spent on stock that has not sold yet. A negative count is treated as 0. This is the same arithmetic as the Items tab of the Small Business Inventory Tracker.
A worked example
The Inventory Tracker's example is a made-up candle and soap maker. Its lavender soy candle uses $4.20 of materials, $2.00 of labor and $1.30 of packaging, so one candle costs $7.50 to make. It sells for $24.00 and the shop pays 10% in fees, which is $2.40, so each sale keeps $14.10, a 58.8% margin. With 26 candles on the shelf, $195.00 is tied up in that one item. The citrus candle costs $12.50 a unit, sells for $38.00 and keeps $21.70. A $5.00 lip balm with a $1.70 unit cost keeps $2.80.
Track unit cost, stock and profit for every item
The Small Business Inventory Tracker for Excel and Google Sheets works out the unit cost and profit per unit for up to 150 items, keeps units on hand from one stock log, and flags each item at your reorder point. A dashboard shows stock value at cost, items to reorder, top sellers and sales and profit for any date range. It includes a filled-in example. $2.99, instant download.
Questions
How do I calculate cost per unit?
Add up everything that goes into one unit: materials, the labor to make it, and the packaging. If you buy materials in bulk, divide the bulk price by the number of units it makes. That total is your unit cost.
Should I include my own labor in the unit cost?
If you want the profit figure to be money left after paying yourself, yes. Put a per-unit amount for your time in Labor. If you leave it at 0, the profit per unit is also your pay.
What fee rate should I type?
The total share of the price your selling and payment fees take. Check your own marketplace and payment processor for your rates. Type 0 if you sell in person for cash.
What is a good profit margin per unit?
It depends on your product, your volume and your other costs, like rent, ads and software, which come out of this profit. The calculator shows the margin so you can compare items side by side.
Why does stock value matter?
It is money you have already spent that comes back only when the stock sells. Seeing it per item shows where your cash is sitting.