Free tool
Free during betaCosmetic Cost Calculator
Estimate true cost per unit for a handmade cosmetic — ingredients, packaging, labour, and overhead — and see suggested wholesale and retail prices based on your target margin.
Estimates, not financial advice
FormulaNorth helps organize cosmetic formulation, label, costing, and CNF preparation information. It is not legal or regulatory advice and does not replace Health Canada guidance, professional regulatory review, or the maker's responsibility to verify product compliance before sale.
Frequently asked questions
What goes into a real cost of goods sold for a cosmetic product?
Ingredients, packaging, labels, fillers and shipping in, breakage allowance, labour for production and packing, and overhead like rent, utilities, software, and insurance.
How is gross margin calculated?
Gross margin = (selling price − cost) ÷ selling price. A 60% margin means 60% of the retail price is gross profit before any other expenses.
How is wholesale price typically set?
Many indie makers set wholesale at roughly 2× their cost (a 100% markup), which keeps room for retailer markup and discounts. The right markup depends on the channel and category.
Does this calculator account for taxes or shipping out?
Not directly. Taxes (GST/HST/PST) on the input side and shipping to customers are usually handled at checkout or as separate line items rather than as part of cost of goods.
Can I save these calculations?
Save costing alongside your formula by creating a free FormulaNorth account. The costing tab inside the formula links back to ingredient prices so updates flow through automatically.