TRANSPARENT MATH
How the calculators work
Every quote begins with the numbers you enter. We do not estimate a local market price or promise that an order will be profitable.
Ingredient cost
For each ingredient: amount used ÷ amount in purchased package × package price. The tool converts compatible weight units (g, kg, oz, lb) and compatible volume units (ml, l, US fl oz, cup, tbsp, tsp). Cups and spoons use US measures: 1 cup = 16 tablespoons = 48 teaspoons. It does not convert volume to weight or assume that one cup of different ingredients weighs the same.
Labor and total cost
Labor cost is minutes spent ÷ 60 × hourly rate. Total order cost is ingredient cost plus labor, packaging, and any other cost you enter. A zero value means you chose not to include that cost.
Target gross margin
The suggested quote is total cost ÷ (1 − target gross margin as a decimal), rounded up to the nearest cent. A $26 total cost at a 30% target margin is $26 ÷ 0.70 ≈ $37.1429, so the displayed quote is $37.15. This differs from a 30% markup on cost, which would be $33.80.
Per-serving and per-dozen figures
Divide the unrounded order quote by the number of sellable servings, cookies, or cupcakes, then round each displayed unit price up to the nearest cent. For cookies and cupcakes, multiply the unrounded single-item quote by 12 before rounding the dozen figure. The recipe-cost tool shows ingredient cost per portion instead of a selling price.
Orders with multiple cookie or cupcake batches
For cookies and cupcakes, the entered batch count multiplies ingredient cost and labor minutes per batch. Extra labor minutes per order, packaging, and other order costs are added once. If you need two separate boxes, enter the total packaging for both boxes. The per-item and per-dozen figures then divide the unrounded order quote by the total sellable yield.
Rounding and comparisons
Ingredient fractions are calculated before the final quote is rounded up to cents. Unit prices are rounded separately from the whole-order quote, so multiplying a displayed per-cookie price by the cookie count can be a few cents higher than the displayed order quote. Compare old and new quotes using their full order totals, not a rounded unit price multiplied back up.
What is outside the calculation?
Sales tax, delivery, payment processing fees, ingredient waste, discounts, customer agreements, and local demand are not automatically included. Add applicable costs before using a quote, and review the result yourself. Existing accepted customer quotes do not change automatically when an ingredient price changes.
Before sending a customer quote
- Check package sizes, compatible units, sellable yield, and active labor time.
- Add order-specific costs the calculator cannot infer, including boxes, delivery, fees, or expected waste.
- Confirm whether the target is margin on entered costs or markup, then review the final price against your market and commitments.
The displayed target margin is a worksheet calculation on the costs you entered. It is not a complete business profit statement.
Last checked: September 2026. Please report a calculation problem through the contact page.