Costing calculator

Unit Cost Calculator

Estimate real manufacturing cost per good unit by combining material, labor, overhead, setup amortization, scrap, and margin.

What this calculator does

  • Roll labor, material, overhead, setup, scrap, and margin into a per-part quote.
  • Use before sending a quote or comparing process options.
  • Roll labor, material, overhead, setup, scrap, and margin into a per-part quote.

Formula used

  • Labor = labor rate × cycle time ÷ 3,600
  • Setup per unit = setup cost ÷ batch size
  • Good-unit cost = base cost ÷ yield
  • Quote price = good-unit cost ÷ (1 − margin)

Inputs explained

  • Material cost per part: undefined
  • Loaded labor rate: undefined
  • Cycle time: undefined
  • Machine / overhead rate: undefined
  • Setup cost: undefined
  • Batch size: undefined
  • Expected scrap rate: undefined
  • Target margin: undefined

How to use the result

  • Use before sending a quote or comparing process options.
  • This is a planning calculator. Validate assumptions against your process data before using the result as a final quote, schedule, or engineering decision.

Common questions

  • Which inputs usually drive the unit cost result? material cost per part, loaded labor rate, cycle time, machine / overhead rate, setup cost, batch size, expected scrap rate, and target margin usually have the biggest effect. When one of those assumptions changes, rerun the calculator and compare the new $ / unit result before updating the plan.
  • What does the unit cost calculator do? Roll labor, material, overhead, setup, scrap, and margin into a per-part quote.
  • What inputs do I need for the unit cost calculator? You need material cost per part, loaded labor rate, cycle time, machine / overhead rate, setup cost, batch size, expected scrap rate, and target margin. Use measured values from your line, quote package, supplier data, or current production plan whenever possible.
  • How should I interpret the unit cost result? Treat the $ / unit output as a planning estimate for costing work. Compare it against process history, quoted assumptions, and operating limits before making final decisions.

Last reviewed 2026-05-12.