% of direct cost — rent, electricity, admin, insurance
₹
Packing material + delivery to customer
%
Working capital interest — typically 2–4%
₹
Inspection, certificates, testing per piece
Target Margin
Desired profit margin (EBITDA)20%
Total Cost / Piece
₹0
Breakeven Price
₹0
Target Selling Price
₹0
Profit per Piece
₹0
Material (incl. scrap)₹0
Labour₹0
Machine + Tooling₹0
Outsourced processes₹0
Overhead allocation₹0
Packing & freight₹0
Finance cost₹0
Quality & inspection₹0
Total cost per piece₹0
Overhead allocation tip: Most manufacturers under-allocate overhead. If your total factory overhead (rent, electricity, admin salaries, equipment maintenance, insurance) divided by total direct cost across all products is above 20%, increase your overhead % input accordingly.
Finance cost: If you're taking working capital loans at 12–14% annual interest, and your average collection period is 60 days, your finance cost per rupee of revenue is approximately 2–2.5%. Always include this — it's often the hidden margin killer.
Pricing for negotiation: Start with your 20% margin price. If buyers negotiate, the minimum you should accept is your breakeven price plus a small buffer (3–5%). Below breakeven for any sustained volume creates cash flow problems regardless of revenue growth.