Tools
Food COGS calculator
Last updated: 16 October 2026
This food COGS calculator works out what one unit of your product costs to make, from ingredients, packaging, wastage, co-packer or labour fees and inbound freight. It shows cost per unit, cost per case, your gross margin at your selling price, and the margin left once a retailer takes its trade discount.
Your numbers, not ours. The default example is a 300g jar of pasta sauce, so swap in your own lines and every figure updates as you type.
Ingredients
5 of 30Enter what goes into one unit. Wastage is the share you lose in prep or on the line, so 3% adds 3% to that line's cost.
Line cost £0.249
Line cost £0.035
Line cost £0.099
Line cost £0.061
Line cost £0.069
Packaging
3 of 20Jars, lids, labels, sleeves and anything else that goes on or around one unit. Skip this if you sell loose.
Line cost £0.184
Line cost £0.051
Line cost £0.042
Making it, moving it, casing it
Your co-packer's fee, or direct labour if you make it yourself.
Getting ingredients and packaging to where you make it, split per unit.
How many units go in one outer case.
What one outer case costs. We split it across the units.
Your price
Your price to the retailer or customer, before VAT.
What a retailer or wholesaler takes off your price.
Your cost and margin
£1.23
COGS per unit
£7.38
COGS per case of 6
44.1%
Gross margin at £2.20
Gross profit £0.97 a unit
£1.87
Net price after trade discount
34.2%
Margin after trade discount
Net profit £0.64 a unit
Where each unit's cost comes from
- Ingredients£0.51441.8%
- Packaging£0.27722.5%
- Co-packer or labour£0.3528.4%
- Inbound freight£0.043.3%
- Case share£0.0504.1%
Your 300g jar costs £1.23 to make, or £7.38 a case of 6. At £2.20 a jar you keep 44.1%. After a 15% trade discount you're selling at £1.87 and keeping 34.2%.
Want to see this on your real batches? Pesto works out cost per unit from actual lot costs every time you record a production run.
Book a demoThese figures are estimates based on your inputs. They're not accounting advice; your accountant may treat some costs, such as overheads or storage, differently.
What do you need to enter?
Ingredients
Packaging
Co-packer fee or labour per unit
Inbound freight per unit
Units per case and outer case cost
Selling price per unit (ex VAT)
Trade discount (%)
How do we calculate it?
Every number comes from your inputs. No hidden multipliers.
# Each ingredient line
ingredient_cost = (grams / 1000) × price_per_kg × (1 + wastage% / 100)
# Each packaging line
packaging_cost = quantity × price_each × (1 + wastage% / 100)
# Per unit
ingredients = sum of ingredient_cost
packaging = sum of packaging_cost
case_share = outer_case_cost / units_per_case
cogs_per_unit = ingredients + packaging + coman_fee + freight + case_share
# Per case
cogs_per_case = cogs_per_unit × units_per_case
# Margin at your selling price
gross_profit = price - cogs_per_unit
gross_margin_% = gross_profit / price × 100
# Margin after trade discount
net_price = price × (1 - trade_discount% / 100)
net_profit = net_price - cogs_per_unit
net_margin_% = net_profit / net_price × 100
Gross margin here is margin on price, not markup on cost. A product that costs £1 and sells for £2 has a 50% margin and a 100% markup.
What does the result look like?
COGS per unit
COGS per case
Gross margin at your price (%)
Net price after trade discount
Margin after trade discount (%)
Cost build-up
Here's the result with the default numbers:
Your 300g jar costs £1.23 to make, or £7.38 a case of 6. At £2.20 a jar you keep 44.1%. After a 15% trade discount you're selling at £1.87 and keeping 34.2%.
Want to see this on your real batches? Pesto works out cost per unit from actual lot costs every time you record a production run.
These figures are estimates based on your inputs. They're not accounting advice; your accountant may treat some costs, such as overheads or storage, differently.
Worked example: a 300g jar of pasta sauce
| Ingredient | Grams per jar | Price per kg | Wastage | Line cost |
|---|---|---|---|---|
| Tomatoes | 220 | £1.10 | 3% | £0.249 |
| Onion | 40 | £0.80 | 10% | £0.035 |
| Olive oil | 15 | £6.50 | 2% | £0.099 |
| Garlic and seasoning | 20 | £3.00 | 2% | £0.061 |
| Basil | 5 | £12.00 | 15% | £0.069 |
| Packaging | Qty | Price each | Wastage | Line cost |
|---|---|---|---|---|
| Glass jar | 1 | £0.18 | 2% | £0.184 |
| Lid | 1 | £0.05 | 2% | £0.051 |
| Label | 1 | £0.04 | 5% | £0.042 |
- Ingredients: £0.514
- Packaging: £0.277
- Co-packer fee: £0.35
- Inbound freight: £0.04
- Case share: £0.30 outer ÷ 6 jars = £0.05
- COGS per unit: £1.23 (£1.23071 unrounded)
- COGS per case of 6: £7.38
- At £2.20 a jar: gross profit £0.97, gross margin 44.1%
- After a 15% trade discount: net price £1.87, net profit £0.64, margin 34.2%
(Illustrative numbers.)
That 15% discount cost nearly ten points of margin. Worth knowing before the next range review.
Where does this fit?
- What is a bill of materials?: the per-unit list behind this calculator.
- What is COGS software for food brands?: when a calculator stops being enough.
- COGS & margins: BOMs, actual lot costing and the gross margin bridge in Pesto.
- All free tools
Frequently asked questions
What should go into food COGS?
Ingredients, packaging, the co-packer fee or direct labour, and inbound freight. Most brands leave out overheads such as rent and office salaries, and outbound delivery to customers. Agree the line with your accountant and stick to it.
How should I set wastage %?
Measure it. Compare what you used across a few production runs with what the recipe says should've gone in. Fresh herbs and trimmed veg run high; oils and dry goods run low.
Why does my COGS differ from my co-packer's quote?
The quote covers their part. Your COGS adds what you supply yourself, such as packaging or key ingredients, plus freight and the outer case.
What's the difference between margin and markup?
Margin divides profit by the selling price. Markup divides profit by cost. Buyers and finance teams talk in margin, so this calculator does too.
Does this work for drinks?
Yes. Enter liquid ingredients in grams (1ml of water is about 1g), and add cans, bottles, caps, labels and the outer case as packaging. It doesn't calculate alcohol duty.
Is my data saved?
No. Everything runs in your browser. Your inputs sit in the page link so you can share it, and nothing reaches our servers.
Know your cost per jar? Now see it on every batch.
Pesto costs every production run from the actual lots you used. Bring your BOM to a demo and we'll show you how.
Book a demo