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Batch Unit Cost Calculator

Spread the whole batch cost across sellable units, showing total cost and yield so rejected output does not disappear from unit economics.

By PriceAndProfit Editorial Updated

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Fill in the fields: the result appears under the form, with the formula below it.

Clear

Formula and cost boundary

Sellable unit cost = (materials + labor + allocated overhead) ÷ good units

Enter completed whole units. Sellable units cannot exceed units started and cannot be zero; a wholly failed batch has a real loss but no cost per sellable unit. Include rework in the batch cost once. Any salvage recovery can be netted into the relevant cost with documentation. Allocated overhead is a planning allocation, not a separate cash payment.

Worked example: Ten percent rejected

The following inputs are hypothetical values for checking the calculation. They are not recommended prices, wages, margins or platform charges. Keep the units and period shown in each label when replacing them with your own records.

Inputs for this worked example
InputExample value
Batch materials cost $600
Batch labor cost $300
Allocated batch overhead $100
Units started 100 units
Sellable units 90 units
Outputs from the displayed inputs
ResultCalculated value
Cost per sellable unit $11.11
Total batch cost $1,000
Sellable yield of units started 90%

Using the result

Save the input set alongside the source date of each quote or cost record. Review the cost boundary before comparing this result with another report: a contribution measure may exclude overhead, and a cash measure follows payment dates. Display rounding does not change the underlying assumptions. Recalculate when an input changes; the tool does not predict future sales or collections.

Are any rates supplied automatically?

No. Numeric fields are your inputs. Example values demonstrate arithmetic only. Check your contracts and records for the amounts that apply to your business.

Why might a result be unavailable or negative?

A missing denominator or inconsistent inputs can make the calculation undefined. Those combinations are rejected or labeled explicitly. A valid negative result remains visible because it may identify a loss or cash shortfall.

Method reference: OpenStax: Basic Cost Behavior Patterns. Checked October 22, 2026. Cost classifications and activity assumptions; allocations do not establish avoidable costs.

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