Calculate your total manufacturing cost, cost per unit, selling price and expected profit before you price your product.
Working Capital Calculator Pro
Estimate the cash tied up in operations, spot funding gaps, and test practical what-if scenarios.
Your Numbers
Use the latest figures from your books. You can change them anytime.
Current Assets
Current Liabilities
Operating Cycle Assumptions
Advanced funding planning
Enter totals directly, or leave blank to use the balance-sheet figures from the first tab.
Quick Ratio excludes inventory. Leave the fields blank to use the balance-sheet figures from the first tab.
Working Capital Dashboard
See liquidity, operating-cycle and funding signals at a glance.
Scenario Lab
Test common business changes without changing your saved base figures.
Where Current Assets Are Sitting
Assets vs Liabilities
Smart Business Insights
Automatic observations based on your numbers.
What Moves Your Cash the Most?
📘 Net Working Capital
Current Assets minus Current Liabilities. It is a balance-sheet measure of short-term liquidity.
⚖️ Current Ratio
Current Assets divided by Current Liabilities. The right level varies by industry and business model.
⚡ Quick Ratio
(Current Assets minus Inventory) divided by Current Liabilities. It focuses on assets that are generally more liquid than stock.
🔄 Cash Conversion Cycle
Inventory Days + Collection Days − Supplier Days. It estimates how long cash is tied up in the operating cycle.
📌 Practical MSME Actions
Frequently Asked Questions
What is net working capital?
Net working capital = Current Assets − Current Liabilities. It is a balance-sheet measure of short-term liquidity.
What is a good current ratio for an MSME?
There is no single ideal ratio for every MSME. Use industry context and your own trend rather than one fixed benchmark.
What is the working capital requirement?
It is the amount of funds your operating cycle may need to keep inventory, receivables and day-to-day operations moving after supplier credit and other funding sources are considered.
What is the cash conversion cycle?
Cash Conversion Cycle = Inventory Days + Collection Days − Supplier Days. A shorter cycle generally means cash returns to the business faster.
Why is quick ratio lower than current ratio?
Quick Ratio excludes inventory, so it focuses on a narrower set of current assets.
Can working capital be negative?
Yes. Negative net working capital means current liabilities exceed current assets; whether that is a problem depends on the business model and cash cycle.
How does the calculator estimate WC requirement?
It estimates inventory funding from COGS and inventory days, receivables from credit sales and collection days, subtracts supplier credit, then adds the selected cash buffer and seasonal buffer.
What is the funding gap?
In this tool, funding gap is the estimated working-capital requirement minus your specified own funds. Gap after finance additionally subtracts your specified existing WC finance limit.
Can exporters use this calculator?
Yes. Exporters can adjust collection days, inventory days, cash buffer and funding limits to reflect longer order-to-cash cycles. Currency and trade-finance costs still need separate analysis.
Does cash credit equal working capital?
No. Working capital describes funds tied up in short-term operations; cash credit is one possible financing facility used to fund those needs.
Can this calculator replace a CA or bank assessment?
No. Use it for planning and discussion. Actual lending limits and financial assessments depend on the lender, financial statements, banking arrangements and business-specific factors.
How often should I update the calculation?
Monthly is a useful minimum for many MSMEs, and more often when sales, inventory, credit terms or seasonality change materially.
Disclaimer: This calculator provides estimates for education and business planning. Working-capital needs, funding limits, bank assessments and industry norms vary by business. Verify decisions with your books, lender and qualified financial professional where appropriate.
Calculate the true cost of making your product with this free Manufacturing Cost Calculator. Add raw materials, packaging, labour, electricity, rent, depreciation and other production expenses to calculate your total manufacturing cost, cost per unit, recommended selling price, GST and expected profit.
Ideal for MSMEs, manufacturers, startups, traders and small businesses that want to price products accurately and avoid underpricing.
How to Calculate Manufacturing Cost
Manufacturing cost is the total cost required to produce a product. It generally includes raw materials, direct labour and manufacturing overheads such as electricity, factory rent, depreciation, repairs and quality control.
The basic formula is:
Total Manufacturing Cost = Material Cost + Labour Cost + Manufacturing Overheads
To calculate the manufacturing cost per unit:
Cost Per Unit = Total Manufacturing Cost ÷ Production Quantity
Once you know your cost per unit, you can add your desired profit margin and applicable GST to determine a suitable selling price.
This helps manufacturers and MSMEs avoid one of the most common pricing mistakes: calculating the selling price only from raw material cost while ignoring labour and overhead expenses.
Why Use a Manufacturing Cost Calculator?
Many businesses calculate product prices by looking only at raw material costs. This can result in underpricing and lower-than-expected profits.
This calculator helps you include:
- Raw material and packaging costs
- Direct and indirect labour
- Electricity and factory expenses
- Rent, depreciation and repairs
- Quality control and insurance
- Production quantity
- Cost per unit
- Desired profit margin
- GST
- Selling price
- Expected profit
You can also use the What-If Analysis to see how changes in material or labour costs could affect your product profitability.
Frequently Asked Questions
What is a manufacturing cost calculator?
A manufacturing cost calculator helps businesses calculate the total cost of producing a product by combining material, labour and production overhead costs.
How do I calculate manufacturing cost per unit?
Divide the total manufacturing cost by the number of units produced.
Cost Per Unit = Total Manufacturing Cost ÷ Production Quantity
How do I calculate a product selling price?
Start with the manufacturing cost per unit, add your desired profit margin and then add applicable GST if you are quoting a tax-inclusive price.
Can MSMEs use this calculator?
Yes. The calculator is designed for quick manufacturing cost and pricing estimates for MSMEs, startups, manufacturers and small businesses.
Can I see what happens if raw material prices increase?
Yes. The What-If Analysis lets you test increases in material and labour costs and see their potential impact on your manufacturing cost and profitability.
Related Business Tools
Want to check your pricing and costs from different angles? Try these free BusinessZindagi tools:
- Profit Margin Calculator — calculate profit, margin, markup and selling price.
- Raw Material Price Increase Calculator — see how supplier price increases affect your product cost and margin.
- GST Calculator — calculate GST-inclusive and GST-exclusive prices.
- CostTrack — track your business expenses and understand where your money is going.
- Export Profit Calculator — calculate export costs, selling price and estimated export profit.
Disclaimer
This calculator provides estimates for business planning and educational purposes only. Results depend on the costs, quantities, taxes, margins and other information entered by the user. Actual manufacturing costs, selling prices and profits may vary based on supplier prices, production conditions, wastage, taxes, market prices and other business expenses.
BusinessZindagi does not guarantee the accuracy or profitability of any calculation. Always verify important figures with your actual invoices, quotations, accounting records and professional adviser before making financial or pricing decisions.