What is a multi-product allocation factor?

It is the share of a shared sterilization load charged to this product. When one load sterilizes several products, set the factor to the fraction of the load this product fills, or 1 if the load is dedicated.

Why does the allocated cost rise when volume drops?

Because the batch charge is fixed per load. If the load releases fewer units, each released unit carries a larger share of the same charge. The cost at lower volume output shows the effect of a 20 percent volume drop.

Should I use released units or units loaded?

Released units only. A unit that fails sterility release still costs the same batch charge but cannot be sold, so dividing by loaded units understates the cost per shippable device.

Does this include the cost of sterility testing?

Include the lot release testing charge in the batch cost so the headline spreads it too. If testing is billed per unit instead, add that charge to the batch cost before you run the numbers.

MedTech Manufacturing calculator

Sterilization Cost per Unit Calculator

Find what each released device carries for sterilization after the batch charge is spread across the load. The batch cost is fixed, so lower released volume raises the unit cost even when the allocation factor holds.

What this calculator does

Cost of one released sterile unit from the batch charge, released volume and allocation factor, plus the cost after a 20 percent volume drop.

Formula used

Allocated cost per unit = batch cost ÷ released units × allocation factor
Base cost per unit = batch cost ÷ released units
Cost at 20 percent lower volume = batch cost ÷ (released units × 0.8) × allocation factor

Inputs explained

Batch Cost: Sterilizer load charge, consumables and lot release testing for this batch.
Released Sterile Units: Devices that passed sterility release from this batch, not units loaded.
Allocation Factor: Share of the batch charge assigned to this product; 1 when dedicated.

How to use the result

Best suited to setting sterilization cost in a standard cost, pricing a multi-product shared load, testing cost at lower released volume.
Rejected units still consumed the batch charge, so a failed release can raise true cost beyond this figure. Multi-load batches need the total batch cost entered against the units all loads released.

Current U.S. benchmarks

U.S. manufacturing runs at 75.7% of capacity with new factory orders at $663B per month (Federal Reserve and Census, Aug 2026).
The U.S. has 8,825 medical equipment and supplies establishments employing about 308,388 workers (Census County Business Patterns, 2023).

Common questions

What is a multi-product allocation factor? It is the share of a shared sterilization load charged to this product. When one load sterilizes several products, set the factor to the fraction of the load this product fills, or 1 if the load is dedicated.
Why does the allocated cost rise when volume drops? Because the batch charge is fixed per load. If the load releases fewer units, each released unit carries a larger share of the same charge. The cost at lower volume output shows the effect of a 20 percent volume drop.
Should I use released units or units loaded? Released units only. A unit that fails sterility release still costs the same batch charge but cannot be sold, so dividing by loaded units understates the cost per shippable device.
Does this include the cost of sterility testing? Include the lot release testing charge in the batch cost so the headline spreads it too. If testing is billed per unit instead, add that charge to the batch cost before you run the numbers.

Last reviewed 2026-10-01.