How to use this calculator
- Enter or choose production cost per unit.
- Enter or choose one-off costs charged in the price (plates, dies).
- Enter or choose order quantity.
- Enter or choose target margin on price.
- The quote price per unit updates as you type. Use Copy result or Share to keep it.
Method
Full cost = Unit cost + One-off costs ÷ Quantity; Price = Full cost ÷ (1 − Margin%); Markup = Price ÷ Full cost − 1
- Margin%
- profit as a share of the selling price
Worked example
- One-off costs per unit = 300 ÷ 5000 = 0.06, so full cost = 0.90.
- Price = 0.90 ÷ (1 − 0.25) = 1.20.
- Order = 5000 × 1.20 = 6000; profit = 6000 − 4500 = 1500 (33.33% markup).
Quote 1.20 per carton: 6000 for 5000 cartons, earning 1500, a 25% margin.
What the result means
Small orders carry a large share of plate and die costs, so the unit price rises sharply below a few thousand units. Quote one-off costs separately if the customer will reorder.
Assumptions and limits
- Margin is measured on the selling price before tax.
- Freight, payment terms and taxes are not included.
Questions
Why not multiply cost by 1.25?
That gives a 25% markup, which is only a 20% margin. Dividing by 0.75 gives a true 25% margin.
Should plates and dies be in the unit price?
Either way works. Many converters charge tooling once, separately, so repeat orders are not overcharged.