Rent and Overhead Allocation per Item

When setting prices you must charge each product with a share of shop rent and overheads, not only the materials. This tool spreads the rent and overheads paid in a period equally over the units produced or sold; if you add the direct cost per unit, it also shows the full unit cost.

Formulas

• Total cost = Rent + Overheads
• Cost per unit = Total cost / Units
• Rent per unit = Rent / Units
• Overhead per unit = Overheads / Units
• Full unit cost = Cost per unit + Direct cost

Amounts are rounded to cents, half up (HALF_UP), so the rent and overhead shares may differ from the total share by one kuruş. The unit count must be at least 1. Enter costs excluding VAT.

Example 1: monthly rent TRY 18,500, overheads TRY 7,250.50, 240 units sold a month and a direct cost of TRY 42.75 per unit. Total cost is TRY 25,750.50; the share per unit is TRY 107.29 (rent 77.08 + overhead 30.21) and the full unit cost TRY 150.04.

Example 2: rent of TRY 6,000 and overheads of TRY 4,000 over 100 units give a total of TRY 10,000.00 and a share of TRY 100.00 per unit (rent 60.00 + overhead 40.00). With 3 units and a total of TRY 100, the share is TRY 33.33; because of rounding, the three shares add up to TRY 99.99.

How to read the result: "Allocated cost per unit" is the fixed-cost share each product has to carry; the selling price must cover this share and the direct cost. "Full unit cost" is the starting point for price and margin calculations. The more units you sell, the lower the fixed-cost share per unit; at low volumes it rises quickly. Allocation is equal per unit; if products use different space, time or resources, use a weighted allocation key. Without depreciation, payroll and financing costs the full cost is understated.