Raw Material Cost Calculator
Per-unit formulation cost from ingredient prices and usage.
Inputs
%
%
%
%
%
%
Results
Total cost per unit ($)
$2.71
Suggested retail price ($)
$10.84
≈ 2 cups of coffee
Gross margin (%)75
Batch raw material cost ($)$91.00
Units per batch100
Raw material cost/unit ($)$0.91
Cost per kg product ($)$18.20
Actives cost share (%)41.21
Unaccounted formula (%)4
How to Use This Calculator
- Enter each raw material name, usage level percentage, and cost per kilogram.
- Set the target batch size in kilograms.
- Review the raw material cost breakdown and total batch cost.
- Divide total batch cost by yield units to calculate cost of goods (COGS) per unit.
- Adjust individual usage levels or source alternatives to meet your COGS target.
How the result changes with Packaging cost ($/unit)
| Packaging cost ($/unit) | Total cost per unit ($) | Suggested retail price ($) |
|---|---|---|
| 5 | $6.21 | $24.84 |
| 18 | $19.21 | $76.84 |
| 33 | $34.21 | $136.84 |
| 45 | $46.21 | $184.84 |
What each input means
- Batch size (g)
- Total batch weight in grams.
- Fill weight per unit (g)
- Grams of product per finished container (jar, tube, bottle).
- Water phase (%)
- Water phase percentage (water, aloe, hydrosols).
- Water phase cost ($/kg)
- Cost per kg for water phase ingredients.
- Oil phase (%)
- Oil phase percentage (carrier oils, butters, waxes).
- Oil phase cost ($/kg)
- Cost per kg for oil phase ingredients.
- Active ingredients (%)
- Active/functional ingredient percentage (vitamins, peptides, acids).
- Actives cost ($/kg)
- Cost per kg for active ingredients. Peptides can be $500-5000/kg.
- Emulsifier (%)
- Emulsifier system percentage.
- Emulsifier cost ($/kg)
- Cost per kg for emulsifier.
- Preservative (%)
- Preservative system percentage.
- Preservative cost ($/kg)
- Cost per kg for preservative.
- Fragrance (%)
- Fragrance oil percentage.
- Fragrance cost ($/kg)
- Cost per kg for fragrance oil.
- Packaging cost ($/unit)
- Container/jar/tube cost per unit.
- Labeling cost ($/unit)
- Label printing and application cost per unit.
- Target markup (×)
- Price multiplier over total cost. Indie brands: 3-5×, luxury: 8-15×.
What each result means
- Total cost per unit ($)
- Combined raw material + packaging + labeling cost per finished unit.
- Suggested retail price ($)
- Retail price based on your markup multiplier.
- Gross margin (%)
- Gross profit margin percentage at the suggested retail price.
- Batch raw material cost ($)
- Total cost of all raw materials for the batch.
- Units per batch
- Number of finished units from this batch.
- Raw material cost/unit ($)
- Raw ingredient cost per unit (before packaging).
- Cost per kg product ($)
- Raw material cost per kilogram of finished product.
- Actives cost share (%)
- Percentage of raw material cost from active ingredients.
- Unaccounted formula (%)
- Remaining percentage not assigned to listed ingredients. Should be close to 0 for a complete formula.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersBatch size (g) = 5000, Fill weight per unit (g) = 50, Water phase (%) = 65, Water phase cost ($/kg) = 2 = 17 input(s) provided
- Calculate Total cost per unitTotal cost per unit = rawCostPerUnit + packagingCostPerUnit + labelingCostPerUnit2.71 = $2.71
- Calculate Suggested retail priceSuggested retail price = totalCostPerUnit * targetMarkup10.84 = $10.84
- Calculate Gross marginGross margin = suggestedRetailPrice > 075 = 75
- Calculate Batch raw material costBatch raw material cost = waterCost + oilCost + activesCost + emulsifierCost + preservativeCost + fragr...91 = $91
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