Price Calculator BETA

The HSCG Price Calculator is being released in BETA test. Please inform the webmaster at webmaster@soapguild.org if you have comments, suggestions or have found a bug.

To function properly, this Price Calculator requires an up-tp-date browser. Javascript must be installed and allowed. Worksheet entries will work on mobile devices but will display best in a laptop or desktop sized monitor. For help as you go, click the icons for each entry. For more information see Help with the Price Calculator.

HSCG Members may save and recall product price calculations.

Clear and enter new product

 Product Name:

Product Name:

This can be a single product (i.e. "Lotion (Lavender)"), a product category (i.e. "Soap"), or even the average of all products.

If you are going to save this calculation, use a unique name so you can easily identify it later.

 Quantity per Batch:

  

Quantity per Batch:

The amount of product produced in one batch. Don't count damaged product.

If you are doing these calculations to determine a profitable sale price, don't count any products given away, kept for personal use or set aside as a retain sample. Only count the number of products that are actually going to be )or were) sold in the batch.

Product Cost

Raw Materials Cost per Unit:

Raw materials are everything that goes into your batch, including ingredients, containers, lids, label & packaging materials, and materials that are directly used up in production (such as pipettes, disposable gloves or masks.

For the most accurate calculations, use the actual purchase price, including shipping.

Raw Materials Cost per Unit Worksheet   Clear  |  Hide

Enter everything that is used in the batch, including raw materials, fragrance, colorants, and additives. Also list the container and lid (if any), label and packaging matieral and label printing costs. Finally, include anything that is used up during production such as pipettes, gloves, masks, other disposable supplies, and cleaning materials necessary for cleaning up after the batch is complete.

ItemSupplierAmount PurchasedCostShippingAmount UsedBatch Cost
EXAMPLE: Coconut OilBrambleberry7 pounds$16.75$10.486 oz$1.46
 
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$
 $

Add New Item

Total cost of materials for batch: $

The Allowance for Loss adjusts for the material that is purchased but not actually used in a product through loss, damage, spillage, and even the tiny bit that gets left in the package or container.

Example: In a 50lb block of shea butter, at the end there may be several ounces still left in the box that can't be gotten out. Example: A small spill could lose an ounce or two.

Since the exact amount can't be determined in advance, a percentage is used to calculate an amount to spread across all the materials in the batch. Five percent (5%) is the default, but a different percentate may be entered.

 Allowance for loss: 
%
$
Total cost of materials including loss: $
Material cost per Unit: $

 Raw Materials Cost per Unit:

or Enter Total

$

Raw Materials Cost per Unit:

Raw materials are everything that goes into your batch, including ingredients, containers, lids, label & packaging materials, and materials that are directly used up in production (such as pipettes, disposable gloves or masks.

For the most accurate calculations, use the actual purchase price, including shipping.

Direct Labor Cost per Unit Worksheet   Clear  |  Hide

For the most accurate results, break out the different actions involved in making the batch and assign an hourly wage that is commensurate with the task. Some things can be done by inexperienced (cheap) labor and some require more skill and thus would be paid at a higher rate.

TaskMinutesHourly WageLabor Cost
EXAMPLE: Measure out ingredients25$12.50$5.21
$
$

Add New Task

 Allowance for labor taxes and costs: 
%

The Allowance for Payroll Taxes & Cost is the amount included to cover the employer portion of payroll taxes and the costs associated with paying someone. In the US, the amount is generally considered to be around 15% - 20%.

If you plan to expand your business, factoring in the actual cost of labor is important. Even if you are only paying yourself, you will need to pay a "self-employment tax" which is equal to the empoyer contribution to Medicare and Social Security.

$
Total cost of direct labor for batch: $
Direct labor cost per Unit: $

 Direct Labor Cost per Unit:

or Enter Total

$

Direct Labor Cost per Unit:

The cost of labor directly related to making the product. Even if you aren't paying someone else (yet), include your time at the going rate in the calculations.

Fixed Overhead Cost per Unit:

Fixed overhead costs are the costs that are there all the time, regardless of how much product you make. They generally don't change too much. Included in fixed overhead costs are items like rent, utilities, insurance, and website hosting.

The fixed overhead costs are spead the products produced, so each the cost of each product is increased a little bit to account for all the costs.

In this calculator, you must enter the expect total number of products you will produce in a month in order to determine the cost per product.

Fixed Overhead Cost per Unit Worksheet   Clear  |  Hide

Enter fixed overhead costs. The most common items are listed, but you may have other fixed costs. Don't include variable costs that change based on how and what you are selling (such as show fees). or administrative costs.

If you currently work out of your home, include rent and utilities either as a percentage of what you are currently paying or as an estimate of what you would pay if you rented a suitable space to make and/or sell your products.

Not accounting for your overhead costs now, when you are pricing your products, may result in unrealistic product prices later when your business expands and your overhead increases.

The Total number of all products you expect to produce in one month. The fixed overhead amounts are divided up amongst all of the products, adding a little bit of cost to each one.In that way, the overhead costs are accounted for in your product cost and your the final retail price of your product.

 Total number of all products for month: 
ItemAmountPaid EveryMonthly Cost
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$
$
$
$
$
$
$
$
$
$
$
$
$

Add New Overhead Cost

Total monthly overhead cost: $
Fixed overhead cost per Batch: $
Fixed overhead cost per Unit: $

 Fixed Overhead Cost per Unit:

or Enter Total

$

Fixed Overhead Cost per Unit:

Fixed overhead costs are the costs that are there all the time, regardless of how much product you make. They generally don't change too much. Included in fixed overhead costs are items like rent, utilities, insurance, and website hosting.

The fixed overhead costs are spead the products produced, so each the cost of each product is increased a little bit to account for all the costs.

In this calculator, you must enter the expect total number of products you will produce in a month in order to determine the cost per product.

Total Cost per Unit:

$

Product cost seems too high? Check the tips to get your cost down (Opens in a new window or tab).

Product Sale Price

 Product Markup:

x

The Product Markup the difference between the wholesale price and the product cost. It is added to the cost of the product in order to cover the costs of doing business and create a profit. Normally the Markup is created by multiplying the product cost by a specific amount. Typically that the markup is at least 2 times the product cost. In a handcrafted soap or cosmetic business, a markup of at least 2.5 times the product cost is recommended in order to ensure long term viability for your business. However, there is no rule that says it can't be more; luxe or high end products may have a product markup of 3 or even 4 times the product cost.

Example: The cost of a product, including materials, labor and overhead, is $1.00. A product markup of 2.5 would put the wholesale sales price at $2.50 ($1.00 x 2.5). In a business, the $1.50 difference between the product cost and the wholesale price would be the gross profit that covers the expenses of running the business such as office supplies, promotion, administrative costs, travel, craft show fees, research and development, shipping, etc.

The cost + markup is the lowest price the product could be sold for and still cover all business costs with (hopefully) a small profit.

 Adjust for Wholesale Reps 15% commission?

If you use Wholesale Reps now, or plan to use them down the line, you should factor their 15% commission into your wholesale price.

Wholesale price per Unit:

$

 Wholesale Markup:

x

The Wholesale Markup the difference between the wholesale price and the retail price. The suggest retail price is normally 2 times the wholesale price, but that's not cast in stone. You can set your wholesale markup more or less. Keep in mind that companies that buy from from you wholesale will expect to be able to mark up the products around 2x in order to get a decent retail price. They will also expect that if you also retail, you won't undercut their price.

Suggested Retail Price per Unit:

$

Price seems too high? Check the tips to get your price down (Opens in a new window or tab).