Cost per Unit Calculator
True fully-loaded manufacturing or service cost per unit.
Fully-loaded cost includes direct materials, direct labor, and allocated overhead. For services, it's labor + overhead per hour or project. This calculator helps you determine true cost per unit for pricing and margin analysis.
Inputs
Results
Cost per unit: $35
Margin at selling price: 30%
Insights
Formula
Cost per unit = Materials + Labor + Overhead Margin = (Price - Cost) / Price
Input Definitions
What does each input mean?
- Direct materials
- Raw materials and components that go into each unit.
- Direct labor
- Labor cost directly attributable to producing each unit.
- Overhead allocation
- Allocated share of fixed and variable overhead per unit. Use Overhead Cost calculator.
Related Calculators
Knowing Your Unit Economics Before You Ship Anything
Cost per unit is the foundation of every pricing decision in a product business. Get it wrong and you can sell more and make less. This calculator helps you add up all the costs that go into a single unit — materials, labor, packaging, shipping, overhead allocation — so you know your floor price and exactly how much margin you have at any given retail price.
Use it when you’re setting launch pricing for a new product, when rising material or shipping costs are eroding margins you previously modeled, or when you want to understand how unit economics change at different production volumes. A product that looks profitable at 100 units per month can look very different at 1,000 — and this tool shows you why.