🧾 Cost

Cost per Unit Calculator

Calculate the complete manufacturing cost per unit — materials, labour, overheads and packaging — to set prices and check profitability.

Variable Costs (change with volume)

Fixed Costs (monthly total)

📊 Cost Breakdown
Variable Cost per Unit
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Fixed Overhead per Unit
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Total Cost per Unit
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Gross Margin
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Monthly Total Cost
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How This Calculator Works

Variable CPU = Material + Labour + Electricity + Packaging Fixed CPU = Monthly Fixed Costs ÷ Monthly Volume Total CPU = Variable CPU + Fixed CPU Gross Margin = (Selling Price − Total CPU) ÷ Selling Price × 100%

Increasing production volume reduces fixed cost per unit — the "economies of scale" effect.

🔗 Related Calculators

👷 Labour Cost per Unit 📈 Break-Even Calculator 💸 Scrap & Rejection Cost

Variable vs Fixed Costs — Why the Distinction Matters

Variable costs scale with production — more units = more material, more labour. Fixed costs stay constant regardless of volume — rent, depreciation, admin staff. Understanding this split is critical for pricing decisions: you can sell at any price above variable cost in the short term, but you must cover fixed costs to be profitable in the long term.

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