Work out cost per gram of formula instantly with clear inputs, formula shown and shareable results.
Formula cost per gram is total raw material cost divided by batch size. Multiplying by fill weight gives the formula cost in each unit, and adding packaging gives the cost of goods before labour and overhead. In cosmetics, packaging frequently exceeds the formula cost several times over.
Cost per gram
Cost per gram = raw material cost / batch size
Unit cost
Cost per unit = cost per gram x fill weight + packaging cost
Because a well-made pump, airless bottle or decorated jar with a carton can cost several times the value of the 30-50 grams of product inside. Reducing formula cost when packaging dominates achieves very little.
Labour, quality control, overhead, wastage, freight and duty. Cost of goods sold is typically 1.3-1.8 times the raw material plus packaging figure once those are included.