soapformulator
EN
Calculators

Cost and price

Materials at what you paid for them, packaging, labour and overhead, then what your price earns. Margin and markup side by side, because they are the same sale measured two ways, and mixing them up is the commonest way to underprice.

What went into the batch

Each line at the price you paid for the pack you bought. Or build the recipe on the lye calculator and bring it here with “Cost this batch”. Prices you enter are kept in this browser for the next batch.

The rest of the cost
Bars, jars or candles: what you will sell.
Wrap, box, label, sticker.
From weighing out to wrapping. Cure time costs shelf space, not hands.
Rent, insurance, fees and the rest, as a share of materials, packaging and labour. Last year’s figures divided by last year’s spending are a fair start.
Pricing

add what went into the batch

Calculated at soapformulator.com, every value sourced. Check the figures against your own scale.

The formula, and where it comes from 
line      = grams used × price paid ÷ grams in the pack
direct    = materials + packaging × units + minutes ÷ 60 × hourly rate
total     = direct × (1 + overhead %)
per unit  = total ÷ units

margin    = (price − cost) ÷ price      # a share of the price
markup    = (price − cost) ÷ cost       # a share of the cost
price     = cost ÷ (1 − margin)         # for a target margin

Margin or markup

Both are the profit on a sale. Margin divides it by the price, markup by the cost. A bar that costs 2 and sells for 4 has a 50 % margin and a 100 % markup. Ask for a 50 % margin and add 50 % to the cost instead, and the bar sells for 3: a 33 % margin, and half the profit you planned. The gap grows with the number: a 75 % margin is a 300 % markup.

What to count

Everything a batch uses up. The lye and the water cost little and still count. So does the packaging, and so does your time: a price that covers only the oils pays you nothing for making the soap. Overhead covers what no single batch uses up but every batch needs.

Common questions

Is a 50 % margin the same as doubling the cost?
Yes. Doubling the cost is a 100 % markup, and it leaves half the price as profit: a 50 % margin. Adding 50 % to the cost is a 50 % markup, which is only a 33 % margin.
What should I charge?
This page will not say. The rules of thumb that go round, such as doubling the cost for wholesale and doubling again for retail, are habits, not findings. It tells you what any price earns and what price a margin needs; the market decides the rest.
Should I count my own time?
If you want the business to pay you, yes. Leave it out and the cost looks lower, the margin looks healthier, and the hours are free. Put in the rate you would pay someone else to do the work.
My supplier sells by volume. What do I enter?
The weight. Soap is made by weight, and a litre of oil weighs less than a kilogram. Most suppliers print the net weight on the label or the invoice; use that.

Goes well with

All tools
Lye calculator NaOH, KOH or dual lye, water three ways, additives, fragrance, mold sizing — every number explained
Label maker A soap or cosmetic label with every particular the EU, Great Britain, the US, Canada or Australia asks for, checked against the rule

Know when the workbench lands

Saved recipes, versions and a batch log are what comes next. Leave an address and you will hear when they are ready, plus a short note whenever something ships. No newsletter, nothing sold, one click to stop.