Packaging Material Cost Calculator
Per-unit packaging cost from box, fill, tape, and label.
Inputs
Results
Total cost per unit ($)
$1.90
Material cost per unit ($)$1.30
Labor cost per unit ($)$0.60
Material %68.4
Labor %31.6
Monthly total ($)$950.00
Annual total ($)$11,400.00
Packing hours/month16.7
Monthly Material Cost$650.00
Monthly Labor Cost$300.00
How to Use This Calculator
- Enter material type, area or volume required, and unit cost ($/sq ft, $/lb, or $/unit).
- Enter annual quantity needed and minimum order quantity (MOQ) from the supplier.
- Read total annual material cost ($) and cost per package.
- Compare unit cost at different volume tiers to identify optimal order quantities.
- Use results in product landed cost analysis and packaging budget planning.
How the result changes with Box cost ($)
| Box cost ($) | Total cost per unit ($) |
|---|---|
| 5 | $6.05 |
| 18 | $19.05 |
| 33 | $34.05 |
| 45 | $46.05 |
What each input means
- Box cost ($)
- Cost per corrugated box or mailer.
- Void fill cost ($)
- Cost of packing peanuts, air pillows, kraft paper, or foam per package.
- Tape cost ($)
- Cost of sealing tape per package (typically $0.05-$0.20).
- Label cost ($)
- Shipping label and/or product label cost per unit.
- Extras cost ($)
- Inserts, thank-you cards, shrink bands, desiccants, etc.
- Pack time (min)
- Minutes of labor to pack one unit.
- Labor rate ($/hr)
- Fully loaded hourly labor cost (wage + benefits + overhead).
- Units per month
- Monthly shipping volume.
What each result means
- Total cost per unit ($)
- Material + labor cost to package one unit.
- Material cost per unit ($)
- Sum of box, fill, tape, label, and extras.
- Labor cost per unit ($)
- Packing labor cost per unit.
- Material %
- Material as a percentage of total per-unit cost.
- Labor %
- Labor as a percentage of total per-unit cost.
- Monthly total ($)
- Total monthly packaging spend.
- Annual total ($)
- Projected annual packaging cost.
- Packing hours/month
- Total labor hours devoted to packing each month.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersBox cost ($) = 0.85, Void fill cost ($) = 0.25, Tape cost ($) = 0.12, Label cost ($) = 0.08 = 8 input(s) provided
- Calculate Total cost per unitTotal cost per unit = materialCostPerUnit + laborCostPerUnit1.9 = $1.9
- Calculate Material cost per unitMaterial cost per unit = boxCost + voidFillCost + tapeCost + labelCost + extrasCost1.3 = $1.3
- Calculate Labor cost per unitLabor cost per unit = (laborMinutes / 60) * laborRatePerHour0.6 = $0.6
Engine last updated . Checked against 2 independently-derived tests — how we verify calculators.
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