Build a multi-component bill of materials, allocate purchasing scrap and shared setup time, and quote a finished batch at a target net margin. Add or remove as many component rows as you need without creating an account.
1. Components per finished unit
| Component | Units per assembly | Cost per component | Reject / scrap (%) | Action |
|---|---|---|---|---|
2. Assembly, setup & selling
Bill of materials & pricing results
| Assembly labor per unit | $2.67 |
|---|---|
| Allocated setup per unit | $0.20 |
| Overhead per unit | $1.04 |
| Total pre-fee production order cost | $583.98 |
| Modeled order selling fees | $29.81 |
Sample components are illustrative. All prices use the same currency you select; no FX conversion is performed. Taxes, inventory financing, defects of completed assemblies, shipment charges, and expense categories not entered are excluded.
For each component, expected purchase expense per good assembly equals required component quantity × purchase price ÷ (1 − reject rate). These material costs are added to direct assembly labor and other per-unit expenses. Production overhead is applied to that subtotal. Shared setup labor is spread over the specified batch quantity. The whole-order quote then solves for your target margin after percentage selling fees and the fixed fee for the order.
Worked example: assembling a product from four materials
Suppose an order contains 50 finished assemblies. Each uses one $5.25 printed casing, four $0.12 screws, two $0.28 magnets and a $0.85 box. Supplier scrap varies by component. With eight minutes of assembly per finished unit at $20/hour, 30 minutes of shared order setup, 10% overhead and a 30% target net margin, the estimated cost is $11.68 per assembled unit. Your sample quote is $17.54 each, or $876.83 per order.
What counts as a BOM component?
Enter materials actually purchased for a finished item: printed or laser-cut parts, fasteners, magnets, wiring, packaging, labels and purchased subassemblies. Use the number of each part per finished unit, not the total number needed across the order. For scrap or damaged parts, use a rate based on your actual supplier and assembly records.
Frequently asked questions
Is BOM cost the same as total manufactured cost?
No. Raw component cost excludes labor, setup time, overhead, failure allowance for entire assemblies, shipping and selling fees. This tool accounts for the first group only when you enter the corresponding fields.
What does component reject percentage mean?
It is the fraction of acquired components expected to be unusable. The expected purchase multiplier is 1 ÷ (1 − rate), not simply 1 + rate. This is a planning approximation for independently rejected parts.
Does shared setup get charged once?
Yes. The order setup minutes are converted to labor cost and divided by the finished-order quantity. The same method is used to spread the fixed order fee when solving for your wholesale price.
Can I add packaging to the component list?
Yes. Packaging items, shipping labels, magnets and fasteners are all valid BOM lines. Do not also add the same component to other direct costs or it will be counted twice.
Is the target percentage markup or margin?
It is net margin on the modeled selling price after selling fees, not a percentage markup on production cost.
See our calculation methodology or compare prices using the Wholesale Pricing Calculator.