What counts as a small batch?

A lot that needs its own setup, first article or programming check and runs below the standard order quantity. The premium is its extra price per part, not the difference between two total quotes.

Can the premium percent be negative?

Yes. It means the small lot costs less per part than the standard lot. A lower total quote alone does not show a discount, because the small lot contains fewer parts.

Why show the premium per unit as well?

Percent sets the scale, but per-unit dollars show what each part pays toward the small lot's extra setup and handling. Compare that with the work the lot really adds.

How should I set my target premium?

Take the extra setup, first-article and handling hours a small lot needs and price them at your shop rate. Divide by the lot size, then add the profit you want on that work.

Contract Manufacturing, Job Shop Quoting & Make-to-Order calculator

Small Batch Premium Calculator

Compare small and standard lot prices per part, even when the quantities differ. Enter each total quote, each lot quantity and your target premium to see the extra price per part and across the small lot.

What this calculator does

The surcharge a small-batch quote carries over the standard-lot price, in percent and dollars per unit.

Formula used

Small unit price = small-batch quote ÷ small lot units; standard unit price = standard-lot quote ÷ standard lot units
Premium per unit = small unit price − standard unit price
Small-batch premium = premium per unit ÷ standard unit price × 100; premium on small lot = premium per unit × small lot units
Premium vs target = small-batch premium − target premium

Inputs explained

Small-Batch Quoted Price: Total price quoted for every unit in the small lot.
Standard-Lot Quote Price: Total price for the standard lot of the same part.
Standard Lot Units: Parts in the standard lot the quote is priced against.
Small Lot Units: Parts covered by the small lot's total quoted price.
Target Premium: Premium you require to justify the small lot.

How to use the result

Best suited to pricing a short production run, explaining a small quantity price to a customer, setting a quoting policy for low-volume jobs.
Measures the price gap only; it does not prove the premium covers the extra work. Ignores payment terms and delivery costs that may differ between quotes.

Current U.S. benchmarks

The U.S. prime lending rate is 7.00% (Federal Reserve via FRED, 2026-10-02). Payback and financing math should start from today's rate, not a remembered one.

Common questions

What counts as a small batch? A lot that needs its own setup, first article or programming check and runs below the standard order quantity. The premium is its extra price per part, not the difference between two total quotes.
Can the premium percent be negative? Yes. It means the small lot costs less per part than the standard lot. A lower total quote alone does not show a discount, because the small lot contains fewer parts.
Why show the premium per unit as well? Percent sets the scale, but per-unit dollars show what each part pays toward the small lot's extra setup and handling. Compare that with the work the lot really adds.
How should I set my target premium? Take the extra setup, first-article and handling hours a small lot needs and price them at your shop rate. Divide by the lot size, then add the profit you want on that work.

Last reviewed 2026-10-01.