Know the True Cost of Manufacturing Every Product
Totals use Material, Labour and Overhead tabs. Set quantity for cost per unit.
Selling price is planned on total manufacturing cost from other tabs.
Profit analysis uses manufacturing cost and the selling price planner settings. Click Calculate.
The total of material, labour and production overhead required to make a product — the foundation of pricing and profitability.
Direct costs (raw material, direct labour) can be traced to units. Indirect costs (rent, power, supervision) are shared across production.
COGM is the manufacturing cost of goods completed in a period. Unit cost = total manufacturing cost ÷ units produced.
Ignoring wastage, under-allocating overhead, forgetting packaging, and pricing only on material cost.
Material, labour and factory overhead used to produce goods — not usually selling or distribution costs.
Total manufacturing cost divided by number of units produced in the same batch or period.
Wages of workers who physically work on the product (e.g. machine operators, assemblers).
Indirect production costs: power, rent, depreciation, QC, supervision, factory admin.
Input GST may be creditable; selling price planner can show price with GST separately.
Add a desired margin on manufacturing cost, then add applicable GST if quoting tax-inclusive.
The price equal to unit manufacturing cost — zero profit before other business expenses.
High material share means supplier negotiations and wastage control matter most.
When major inputs change, or at least monthly for active product lines.
It is a non-cash cost for costing; still include it for full absorption costing.
Allocate shared overhead fairly by units, machine hours or labour hours as appropriate.
Yes — it forces complete cost listing before you set prices.
Yield loss, cold chain and packaging often dominate; track wastage carefully.
Fabric yield, trims and skilled labour efficiency drive unit cost.
COGS also reflects inventory changes; this tool focuses on production costing for a run.
Negotiate materials, cut wastage, improve labour productivity, optimise power and maintenance.
Usually direct material if product-specific packaging.
Industry-dependent; always cover overhead and leave room for selling costs and risk.
No — it is a planning and education tool for MSMEs and quick scenarios.
Test material or labour inflation and see impact on total cost and planned profit.
Disclaimer: This calculator provides estimated manufacturing costs for educational and planning purposes only. Actual costs depend on production methods, wastage, labour efficiency and factory operations.