How to cost packaging per unit
Combine materials, labour and order size.
1
Add materials per order
Include the box, filler, label, tape and insert.
2
Time the packing
Use the average minutes per order, not the fastest pick.
3
Divide by units
Multi-unit orders spread the packaging cost across more products.
What does this tool do?
Packaging cost often hides in small line items: boxes, filler, labels, tape and the labour to pack an order. This calculator rolls them into a cost per order and per unit, and projects the monthly and annual spend.
The Formula
Cost per unit = (Materials per order + Packing labour per order) ÷ Units per orderFrequently Asked Questions
Should packaging cost include packing labour?
Yes, if staff time is spent packing orders. Labour is often the largest hidden component and should be assigned to the order it serves.
How do I account for packaging waste?
Add a wastage allowance to the materials cost, such as 5% to 10%, because damaged boxes and excess filler are consumed but not shipped.