How do you calculate recipe cost?

Total the real spend (100 units x $45 + $250 overhead = $4,750), then divide by the good units the 80% capture leaves: $4,750 / 80 = $59.38 per good batch unit.

What does the capture factor represent?

It is the share of priced material that carries through into finished product, effectively your yield. You still pay the full $4,500 of ingredients; at 80% capture only 80 good units carry it, which is what pushes the per-unit cost up.

Why include fixed overhead per batch?

Setup, cleaning, and changeover costs don't scale with quantity, so spreading them across the good output is what makes small batches expensive per piece. Here the $250 fixed adds $3.13 to each of the 80 good units.

How can I lower per-piece recipe cost?

Increase batch quantity to dilute the fixed overhead, raise the capture factor by reducing dust and give-away on the feeders, or negotiate the per-unit ingredient rate. Doubling quantity to 200 would cut the fixed contribution per piece in half.

Recipe cost vs bill of materials cost, what's the difference?

A raw BOM sums ingredient prices assuming perfect yield; this recipe cost applies a real-world capture factor and layers in fixed batch overhead, so it reflects what the batch actually costs to run.

Should the capture factor be over or under 100%?

Normally under 100%, it discounts for material that doesn't reach finished product. A factor above 100% would only make sense if you're deliberately loading it to cover a known overdose or give-away target.

Weighing, Dosing & Loss-in-Weight Feeding calculator

Recipe Cost Calculator

Recipe cost is the fully loaded cost of running a formulation batch once you account for the priced ingredients, the fraction of material that actually ends up in product, and the fixed overhead that lands on every batch regardless of size. Cost engineers and batching supervisors on dosing lines use it to quote formulations and to see how much give-away, dust loss, and residual carryover are costing them. It matters because loss-in-weight feeding is where material yield is won or lost, a capture factor a few points low quietly inflates the cost of every batch. The per-unit output makes it easy to compare recipes and to feed a standard cost into your ERP.

What this calculator does

Recipe cost is the fully loaded cost of running a formulation batch once you account for the priced ingredients, the fraction of material that actually ends up in product, and the fixed overhead that lands on every batch regardless of size.
Use it when recipe cost in weighing, dosing and loss-in-weight feeding is being put through a weighing, dosing and loss-in-weight feeding weighted-cost review.
It computes total batch cost as quantity × per-unit rate × capture factor plus fixed overhead, then divides by quantity for a per-piece cost.

Formula used

Recipe Cost cost = quantity × rate × capture factor + fixed cost
Per-unit recipe cost = total cost ÷ quantity

Inputs explained

Batch quantity produced:
Ingredient cost per unit:
Material yield / capture factor:
Fixed batch overhead:

How to use the result

Use it when costing or re-costing a formulation, or when evaluating how a change in yield or batch size moves your standard cost.
The capture factor here scales the variable ingredient cost only; it does not model rework, scrap disposal, or energy, so treat the result as a material-plus-overhead standard, not a full activity-based cost.

Common questions

How do you calculate recipe cost? Total the real spend (100 units x $45 + $250 overhead = $4,750), then divide by the good units the 80% capture leaves: $4,750 / 80 = $59.38 per good batch unit.
What does the capture factor represent? It is the share of priced material that carries through into finished product, effectively your yield. You still pay the full $4,500 of ingredients; at 80% capture only 80 good units carry it, which is what pushes the per-unit cost up.
Why include fixed overhead per batch? Setup, cleaning, and changeover costs don't scale with quantity, so spreading them across the good output is what makes small batches expensive per piece. Here the $250 fixed adds $3.13 to each of the 80 good units.
How can I lower per-piece recipe cost? Increase batch quantity to dilute the fixed overhead, raise the capture factor by reducing dust and give-away on the feeders, or negotiate the per-unit ingredient rate. Doubling quantity to 200 would cut the fixed contribution per piece in half.
Recipe cost vs bill of materials cost, what's the difference? A raw BOM sums ingredient prices assuming perfect yield; this recipe cost applies a real-world capture factor and layers in fixed batch overhead, so it reflects what the batch actually costs to run.

Last reviewed 2026-08-11.