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Manufacturing Tool

Manufacturing Margin Calculator — Know Your Margin on Every Unit Produced

Calculate manufacturing margin by comparing total production cost against ex-factory selling price.

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Formula & How It Works

Total Cost = RM + Labour + Variable OH + Fixed OH + Packaging
Margin % = (Sell − Total Cost) ÷ Sell × 100

Worked Example

RM ₹80, Labour ₹20, OH ₹10+15, Pack ₹5 = Cost ₹130. Sell ₹200 → Margin 35%

When to Use This Calculator

  • Set ex-factory prices
  • Compare margin across product lines
  • Calculate impact of RM price increase

Frequently Asked Questions

(Selling Price − Production Cost) ÷ Selling Price × 100.
RM, direct labour, variable OH (electricity, consumables), fixed OH (rent/depreciation per unit), packaging.
FMCG 20–40%, pharma 50–70%, auto parts 15–25%.
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