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Small Factories, Workshops & OEM Makers

Manufacturing Cost Calculator

What does it actually cost you to make one unit? Break down raw materials, operator labour, machine wear, rent share, and packaging to find your true cost and profitable selling price.

B2B Manufacturing Intelligence

Unit Economics & True Production Cost Engine

0

Batch & Product Specifications

1

Direct Raw Materials

All inputs consumed for this complete production batch

Batch Materials:

₹12,646

Material #1
₹
Line total: ₹8,160Per piece: ₹81.60
Material #2
₹
Line total: ₹700Per piece: ₹7.00
Material #3
₹
Line total: ₹3,300Per piece: ₹33.00
%
(+₹486)
2

Direct Manufacturing Labour

Machine operators, assembly workers, fabrication, and QC for batch

Batch Labour:

₹5,565

Task #1
₹
Task total: ₹2,025Per piece: ₹20.25
Task #2
₹
Task total: ₹2,560Per piece: ₹25.60
Task #3
₹
Task total: ₹980Per piece: ₹9.80
3

Factory Overheads & Utilities

Batch allocated fixed and running factory expenses

Batch Overhead:

₹4,100

4

Per-Unit Packaging & Freight

Expenses incurred on each finished product unit

Direct Unit Add-ons:

₹40.00/pc

Live Unit CostBatch: 100 units
True Manufacturing Cost (COGS)
₹263.11/ unit

Total Batch Production Cost: ₹26,311

Unit Cost Allocation:48% Materials
Materials₹126.46
Labour₹55.65
Overhead₹41.00
Packaging₹40.00
30%
GST Rate:
Profit per Unit:+₹78.93
Ex-Factory Selling Price:₹342.05
GST Amount (18%):+₹61.57
Landed Price (Incl. GST):₹403.62
Net Batch Profit

₹7,893

at 30% margin
Total Invoice Value

₹40,362

incl. ₹6,157 GST
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Unit Cost (COGS)
₹263.11/pc
Factory Cost Accounting Guide

Standard Formula for True Unit Manufacturing Cost

Reliable cost models used by small engineering units, machine shops, plastic injection molders, and garment factories across India.

The Universal Unit Costing Formula

True Unit Cost = [Total Batch Materials + Total Batch Labour + Total Allocated Overheads] / Batch Quantity + Direct Packaging + Direct Freight

Where Total Batch Materials includes raw inputs plus scrap allowance, Total Batch Labour equals hours multiplied by operator hourly wages, and Allocated Overheads accounts for plant power, machine wear, rent, and supervisory costs.

1. Direct Materials and Rejection Buffer

Always add 3% to 8% scrap buffer to sheet metal cuttings, off-cuts, sprues, or machining chips so scrap losses do not erode your operating margins.

2. Man-Hours and Operator Wages

Account for setup time, program loading, primary fabrication, secondary assembly, and quality checking multiplied by your actual hourly pay rates.

3. Tooling Wear and Power Overheads

Industrial machinery draws heavy peak electric loads and requires frequent tool replacement. Adding utilities and tool wear prevents hidden financial leaks.

4. Markup Percentage vs Gross Margin

A 30% markup over production cost yields approximately 23% gross margin. Use the interactive margin slider to ensure healthy cash flow for shopfloor expansion.

Manufacturing Cost Category Breakdown

Direct Material (DM)Raw sheets, coils, rods, plastic granules, fasteners, finishes, plus scrap percentage.
Direct Labour (DL)Wages paid to machine operators, welders, helpers, and assembly staff working on the specific batch.
Manufacturing Overhead (MOH)Plant electricity, compressed air, tooling replacement, CNC maintenance, and workshop rent share.
Fulfillment & OutboundOuter corrugated carton, palletizing, bubble wrap, labels, barcode stickers, and local dispatch freight.

Frequently Asked Questions

What is the difference between Ex-Factory price and Landed unit price?

Ex-Factory price is the cost of the finished product at your plant gate with your profit margin included, excluding transport and taxes. Landed price represents the total delivered cost to the buyer doorstep, including outbound logistics and applicable GST.

How do I calculate machine wear and tooling cost per batch?

Take your monthly tooling expenditure such as CNC inserts, drill bits, laser cutting nozzles, coolant replacement, and divide it by your total machine operating hours. Multiply this hourly rate by the hours required to machine your current batch.

Does this data get stored or uploaded to any external server?

No. 100% of the cost calculation happens directly in your browser. None of your proprietary raw material prices, labour rates, or margins are saved or transmitted anywhere.

How can EnquiryBazaar help my manufacturing business grow?

We specialize in helping Indian engineering, packaging, and metal manufacturers generate direct B2B buyer inquiries from Google without depending on competitive bidding directories.

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