How do you calculate cost per processed pound?

Multiply pounds by the variable rate and the costed scope to get variable cost, add fixed overhead, then divide by pounds. Here 52,000 x 0.42 x 100% = 21,840, plus 8,500 overhead = 30,340, or 0.58 per pound.

What is a good cost per processed pound?

It varies with energy prices and automation, but many North American plants land between 0.45 and 0.75 loaded per pound. The 0.58 in this example is mid-range and healthy for a moderately automated operation.

What is the difference between variable cost and loaded cost per pound?

Variable cost per pound here is 0.42, covering utilities, chemistry, and direct labor. Loaded cost of 0.58 adds the 8,500 fixed overhead spread across the 52,000 pounds, which is the number you should price against.

What is the costed scope percentage for?

It lets you cost only part of production, for example if 80% of pounds carry the standard formula. At 100% it costs every processed pound, as in the worked example.

How does overhead affect cost per pound?

Fixed overhead is spread across volume, so higher poundage lowers cost per pound. The same 8,500 across 52,000 pounds adds 0.16 per pound; across 80,000 it would add only about 0.11.

How do I lower my cost per processed pound?

Cut the variable rate with water reuse, heat recovery, and tighter chemistry dosing, and dilute fixed overhead by pushing more poundage through the same plant. Reducing rewash also helps because it doubles variable cost on affected pounds.

Industrial Laundry, Uniform & Textile Rental Operations calculator

Industrial Laundry Cost Per Processed Pound Calculator

Cost per processed pound is the fully-loaded unit cost of running a pound of laundry through your plant, combining the variable cost of water, gas, chemistry, and wash-aisle labor with an allocation of fixed overhead like rent, equipment, and salaried staff. Owners and controllers in uniform rental and industrial laundry use it as the single most important benchmark for pricing accounts, comparing plants, and judging whether automation or energy projects pay back. Because contract pricing is often quoted per garment or per pound, knowing the true loaded cost is what separates a profitable route from one that quietly loses money. It is the number that turns throughput into margin.

What this calculator does

Estimate total processing cost and cost per processed pound from processed pounds, variable cost per pound, scope, and fixed overhead allocation.
Built for plant managers, finance managers, and pricing teams costing uniforms, linens, mats, and mixed rental goods by customer or period.
It builds variable processing cost from poundage, rate, and costed scope, adds fixed overhead, and divides the total by poundage to give a loaded cost per pound.

Formula used

Variable processing cost = processed laundry weight × variable processing cost per pound × costed production scope
Total processing cost = variable processing cost + fixed overhead allocation

Inputs explained

Pounds of laundry processed:
Variable cost per pound (water, gas, chemistry, labor):
Share of production costed:
Fixed overhead to allocate:

How to use the result

Use it when pricing new accounts, reviewing plant profitability, or evaluating capital projects that change variable or fixed cost.
It uses a single blended variable rate, so a plant with very different soil classes or formulas may need separate runs to avoid masking high-cost work.

Current U.S. benchmarks

U.S. manufacturing runs at 75.6% of capacity (Federal Reserve, May 2026). New factory orders are up 2.3% year over year (Census).

Common questions

How do you calculate cost per processed pound? Multiply pounds by the variable rate and the costed scope to get variable cost, add fixed overhead, then divide by pounds. Here 52,000 x 0.42 x 100% = 21,840, plus 8,500 overhead = 30,340, or 0.58 per pound.
What is a good cost per processed pound? It varies with energy prices and automation, but many North American plants land between 0.45 and 0.75 loaded per pound. The 0.58 in this example is mid-range and healthy for a moderately automated operation.
What is the difference between variable cost and loaded cost per pound? Variable cost per pound here is 0.42, covering utilities, chemistry, and direct labor. Loaded cost of 0.58 adds the 8,500 fixed overhead spread across the 52,000 pounds, which is the number you should price against.
What is the costed scope percentage for? It lets you cost only part of production, for example if 80% of pounds carry the standard formula. At 100% it costs every processed pound, as in the worked example.
How does overhead affect cost per pound? Fixed overhead is spread across volume, so higher poundage lowers cost per pound. The same 8,500 across 52,000 pounds adds 0.16 per pound; across 80,000 it would add only about 0.11.

Last reviewed 2026-05-12.