Product Cost Calculator (COGS)
Calculate Cost of Goods Sold per unit. Tracks materials, labor, and overhead for manufacturing batches.
1. Direct Materials
2. Direct Labor
3. Overhead / Other
About
Pricing a product correctly begins with knowing exactly how much it costs to produce. This COGS (Cost of Goods Sold) Calculator provides a granular breakdown of manufacturing expenses, ensuring no hidden costs eat into your profit margin. It is designed for makers, small manufacturers, and artisans who need to transition from "guesstimating" to data-driven pricing.
The tool separates costs into Direct Materials, Direct Labor, and Manufacturing Overhead. It supports "Batch Mode", allowing you to input the cost of a full production run (e.g., 500 units) to derive the per-unit cost automatically. This is essential for understanding economies of scale and setting wholesale vs. retail prices.
Formulas
The core formula calculates the total batch cost and divides by the quantity produced:
Labor Cost is derived from time and hourly rate:
Reference Data
| Cost Category | Definition | Example |
|---|---|---|
| Direct Materials | Raw components used in the final product. | Fabric, wood, screws, packaging box. |
| Direct Labor | Wages for time spent specifically making the item. | Assembly time (e.g., 15 mins @ $20/hr). |
| Overhead | Indirect costs allocated to production. | Machine wear, shop electricity, glue/thread. |
| COGS | Total cost to create the product. | Materials + Labor + Overhead. |
| Gross Margin | Revenue minus COGS. | Sale Price ($50) - COGS ($30) = $20. |