Buying and supplier planning
Co-packing cost per accepted unit
Estimate copacker cost per accepted unit from input quantity, per-unit processing fee, setup, handling, storage months and rejected output percentage.
The Co-packing cost per accepted unit calculator sums your entered processing fee, setup, handling and storage charges, then divides by accepted output after the rejected percentage. It reports expected accepted units, total entered processing cost, cost per input unit and cost per accepted unit.
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Purpose and output set
The Co-packing cost per accepted unit calculator turns your entered copacker charges into four result rows. It reports expected accepted units, total entered processing cost, cost per input unit and cost per accepted unit. The accepted-unit row is the main comparison figure because it accounts for output lost to rejection. The calculator does not supply supplier rates, market benchmarks or a quote. Every cost comes from the amounts you enter.
Quantity and processing fee
Quantity is the number of input units sent into the copacking run. Processing fee per input unit is the charge your supplier quotes for each input unit. The fee portion of total cost rises in direct proportion to quantity, so doubling input units doubles that portion when the per-unit fee is unchanged. Setup and handling do not scale this way. Keep quantity in the same unit basis as the fee sheet, typically individual sellable units rather than cases, unless your quote explicitly states otherwise.
Setup, handling and monthly storage
Setup per run and handling charges per run are entered as amounts for the run, not per unit. They add once regardless of quantity, so a larger run spreads them across more units. Storage per month is multiplied by storage months. If months is zero, the storage amount contributes nothing even when a monthly figure is present. If storage applies for part of a month, enter the months value your fee sheet supports; the tool uses the number you provide without prorating beyond that multiplication.
Rejected output and accepted units
Rejected or lost output is entered as a percentage of input quantity. Expected accepted units are calculated from input quantity after that percentage and then rounded down to a whole unit. A higher rejection percentage can lower whole-unit accepted output. When the count falls and total entered processing cost is positive, unrounded cost per accepted unit rises. The cost per input unit does not change with rejection because its denominator remains input quantity. If the accepted result falls below one unit, the tool stops with an error rather than returning a per-unit figure.
Reading the four result rows
Expected accepted units shows the whole-unit output available after the entered loss. Total entered processing cost combines only the charges you supplied. Cost per input unit divides that total by input quantity. Cost per accepted unit divides the same total by accepted output, so the gap between the two per-unit rows reflects rejection. Currency results are displayed to cents, so a value such as 0.4082 appears as 0.41. Use the accepted-unit row when comparing scenarios with different loss assumptions.
Worked case: zero-cost starting point
The starting scenario uses 1,000 input units and the default 3 percent rejection, with all cost fields left at zero. Expected accepted units are 970. Total entered processing cost is $0.00, and both per-unit rows show $0.00. That result means no amounts have been entered, not that copacking is free. Replace the zero defaults with values from your supplier fee sheet before treating the output as a cost estimate. The accepted-unit count still changes when you alter rejection.
Worked case: fee and setup with loss
In a synthetic scenario, 10,000 input units carry a $0.35 processing fee per input unit and a $500 setup charge, with handling and storage left at zero. Total entered processing cost is $4,000.00. At 2 percent rejected output, expected accepted units are 9,800. Cost per input unit is $0.40. Cost per accepted unit is $0.41 when displayed to cents, from an exact division of about $0.4082. If rejection rises enough to lower the whole-unit accepted count, the fixed total is spread over fewer accepted units.
Scope and charges outside the entered total
Use your supplier fee sheet as the source for every amount. Zero cost defaults mean no amount has been entered. Product ingredients, packaging, freight, rework and tax must be added if absent from the entered charges. The output is arithmetic on your inputs, not a certification, guarantee or market rate. Review the fee sheet for charges that sit outside processing, setup, handling and storage before you rely on the accepted-unit figure for a sourcing decision.
Questions about co-packing cost per accepted unit
Why can cost per accepted unit be higher than cost per input unit?
The total entered processing cost is the same, but the accepted-unit figure divides by the smaller accepted output after the rejected percentage and whole-unit floor. Loss therefore raises the per-accepted result when total cost is positive.
What should I enter when a charge is missing from my supplier quote?
Enter zero only when no amount has been provided. Zero means no amount has been entered, not that the service is free. Add missing ingredients, packaging, freight, rework or tax outside this calculation if your fee sheet omits them.
How does changing storage months alter the result?
Storage per month is included only for the number of months you enter. Increasing months raises total entered processing cost and both per-unit results when storage is positive. Setting months to zero removes storage from the calculation while leaving setup and handling in place.
What happens if the rejected percentage leaves no accepted unit?
The tool stops with an error when expected accepted output falls below one unit. Lower the rejected percentage or increase input quantity. Accepted output is floored to a whole unit, so very small runs can reach this condition.
Sources and further reading
- Original worksheet method: The original calculation or decision rules, units, examples and limitations are explained on this page; this is not an external performance standard.