How do you calculate case packing labor cost?

Multiply cases packed by the labor cost per case and by the share packed manually to get variable cost, then add fixed supervision and setup. With 100 cases at $45, 80% manual, and $250 fixed, that is $3,600 plus $250 = $3,850 total.

Why multiply by the share packed manually?

Because automated case packing does not incur the per-case manual labor rate. The 80% manual share applies the labor rate only to hand-packed cases, so you are not charging automated output a manual cost it never carried.

What is the case packing labor cost per case?

It is total cost divided by cases packed. In the example, $3,850 across 100 cases is $38.50 per case, the blended unit number you would use in a quote or standard cost.

What is a good labor cost per case?

It varies widely by product, case size, and region, but the lever is the manual share: automating cuts the variable portion and drives the blended per-case figure down toward the fixed overhead floor.

How does automating case packing change this number?

Lower the share packed manually and the variable cost falls proportionally while fixed supervision and setup stays roughly flat. That shift is exactly the before-and-after you model to justify a case packer purchase.

What belongs in fixed supervision and setup cost?

Costs that do not scale with case count, such as a line supervisor, station setup, and pack-out staging. The $250 here is incurred whether you pack 50 cases or 500.

Packaging Automation & End-of-Line Systems calculator

Case Packing Labor Cost Calculator

Case packing labor cost captures what it actually costs in labor to pack a run into cases, separating the variable hand-packing portion from the fixed supervision and setup overhead. Packaging managers and cost estimators use it to quote co-pack jobs, justify a case packer investment, and see the true unit cost of manual packing. It matters because the headline labor rate per case only applies to what is packed by hand; if 80% of cases are manual and the rest are automated, costing the whole run at the manual rate overstates expense. Splitting variable labor from fixed supervision gives an honest per-case number you can defend in a quote or a capital request.

What this calculator does

Estimate the labor cost to hand pack a run from cases packed, labor cost per case, the share packed manually, and any fixed supervision cost.
Use it when you are comparing manual case packing labor against an automated case packer.
It computes total case packing labor cost by multiplying cases packed, labor cost per case, and the manually packed share for variable cost, then adding fixed supervision and setup.

Formula used

Variable packing labor cost = cases packed × labor cost per case × share packed manually
Total case packing labor cost = variable packing labor cost + fixed supervision and setup cost

Inputs explained

Cases packed:
Labor cost per case:
Share packed manually:
Fixed supervision and setup cost:

How to use the result

Use it when quoting a packing job, comparing manual packing against an automated case packer, or building a standard cost for a SKU.
It assumes one blended manual labor rate per case; mixed crew skill, learning curves, and case-size differences can move the real per-case rate, so validate against time studies.

Current U.S. benchmarks

The producer price index for plastic resins and materials stands at 319.371 (BLS, May 2026), up 19.5% from a year earlier. Quotes priced off last quarter's material cost miss this move.
The producer price index for paperboard and containers stands at 276.831 (BLS, May 2026), up 8.8% from a year earlier. Quotes priced off last quarter's material cost miss this move.

Common questions

How do you calculate case packing labor cost? Multiply cases packed by the labor cost per case and by the share packed manually to get variable cost, then add fixed supervision and setup. With 100 cases at $45, 80% manual, and $250 fixed, that is $3,600 plus $250 = $3,850 total.
Why multiply by the share packed manually? Because automated case packing does not incur the per-case manual labor rate. The 80% manual share applies the labor rate only to hand-packed cases, so you are not charging automated output a manual cost it never carried.
What is the case packing labor cost per case? It is total cost divided by cases packed. In the example, $3,850 across 100 cases is $38.50 per case, the blended unit number you would use in a quote or standard cost.
What is a good labor cost per case? It varies widely by product, case size, and region, but the lever is the manual share: automating cuts the variable portion and drives the blended per-case figure down toward the fixed overhead floor.
How does automating case packing change this number? Lower the share packed manually and the variable cost falls proportionally while fixed supervision and setup stays roughly flat. That shift is exactly the before-and-after you model to justify a case packer purchase.

Last reviewed 2026-05-12.