Cost per unit calculator
Unit cost is not always total cost divided by purchased units. Waste, returns, expired goods, and damaged units increase the real cost of each sellable unit.
Formulas
Usable units = Units purchased x (1 - Waste rate)
Real unit cost = Total cost / Usable units
Suggested price = Real unit cost / (1 - Target margin)
Example
If you buy 100 units for 1,000 and expect 10% waste, you really have 90 usable units. Real unit cost is 11.11, not 10. With a 40% target margin, the suggested price is 18.52.
Include waste for food, cosmetics, packaging, apparel, imports, perishable inventory, and products with frequent returns.
It is total cost divided only by the units you can actually sell or use.
No. This calculator estimates the base unit price. Use the margin and VAT calculator for the final taxed price.