Free Costing Tool

Co-Packer Cost Calculator

For CPG brands, understanding the full financial picture of a co-packing agreement is essential for profitability. This tool helps you accurately determine the all-in cost per unit for your production runs.

Co-Packer Cost Calculator

Enter your numbers below to calculate instantly

Your Inputs

The fee charged by the co-packer for labor and overhead per finished unit.
Cost of all ingredients and bulk materials per finished unit.
Cost of primary and secondary packaging per finished unit.
Cost to ship raw and packaging materials to the co-packer per finished unit.
Cost to ship finished goods from the co-packer to your warehouse per finished unit.
The total number of units produced in a single run.
Expected percentage of materials lost or wasted during production (e.g., 0.02 for 2%).

Your Results

Total Co-Packer Cost per Unit
The comprehensive cost for each finished product, including all direct expenses.
Total Production Run Cost
The total financial outlay for the entire production run at the co-packer.
Effective Tolling Fee per Unit (with waste)
The actual tolling fee per salable unit, accounting for material waste.
Estimated COGS per Unit
A preliminary estimate of your Cost of Goods Sold per unit from this production run.

How This Calculator Works

The calculator sums up all direct costs associated with a co-packing run. It combines the co-packer's tolling fee with your raw material, packaging, and logistics expenses, then accounts for production volume and waste.

When to Use This Tool

A CPG brand receives a new quote from a potential co-packer for their flagship product.
The tool reveals the true all-in cost per unit, allowing the brand to compare it against current production or internal cost targets.
A food startup is evaluating two different co-packers, each with varying tolling fees, material sourcing, and logistics options.
By inputting each co-packer's specific data, the tool clearly shows which option offers a lower total cost per unit for their product.
A brand is planning to launch a new product and needs to set a competitive retail price while maintaining healthy margins.
The calculated total cost per unit provides a critical baseline for pricing strategy, ensuring profitability from the start.

Common Questions

What exactly is included in the 'Tolling Fee per Unit'?
This typically covers the co-packer's labor, overhead, utilities, and their profit margin for manufacturing your product. It does not usually include your raw or packaging material costs.
How does the 'Material Waste Rate' affect my costs?
A higher waste rate means you need to purchase more raw and packaging materials to produce the same number of finished goods. The calculator adjusts your material costs upward to reflect this loss, increasing your effective cost per unit.
Can I use this tool to compare multiple co-packer quotes?
Yes, absolutely. Input the specific details from each co-packer's quote into the calculator separately. This will provide a clear, apples-to-apples comparison of the total cost per unit for each option.
Does this calculation represent my full Cost of Goods Sold (COGS)?
This tool provides a strong estimate of your direct manufacturing COGS per unit. It includes materials, labor (via tolling), and direct freight. It generally does not include indirect costs like quality control, warehousing beyond initial receipt, or administrative overhead.

Related Tools

Understand Your True Production Costs.

Guidance provides CPG operators with clear, actionable insights into their supply chain and operations. Make informed decisions to optimize your co-packing agreements.

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