MakerCost User Guide
Complete guide to using the professional P&L calculator for makers
Welcome to MakerCost
MakerCost is a professional Profit & Loss (P&L) calculator designed specifically for makers, custom product businesses, and small manufacturers. It helps you calculate true costs, optimize pricing, and maximize profits using proven business methodologies.
💡 The MakerCost Methodology
Our calculator follows the fundamental business principle that Price = Cost + Profit. We help you calculate your true costs across five critical areas:
- • Direct Materials: Raw materials, packaging, and decorative elements
- • Labor Costs: Your time and expertise valued properly
- • Machine Depreciation: Equipment wear and replacement costs
- • Overhead Expenses: Rent, utilities, insurance, and business operations
- • Profit Margin: Your reward for risk and business growth
✅ What You'll Learn
- • How to price products profitably
- • Calculate true material costs including waste
- • Value your labor appropriately
- • Factor in overhead expenses
- • Generate professional quotes
- • Analyze profit margins effectively
⚠️ Common Pricing Mistakes
- • Forgetting to include all material costs
- • Undervaluing your time and skills
- • Ignoring overhead expenses
- • Not accounting for equipment depreciation
- • Setting profit margins too low
- • Inconsistent pricing across products
Pricing Information Setup
The pricing information section is where you define the fundamental parameters for your calculation. This determines how the P&L analysis will be structured and calculated.
💵 Sale Price Configuration
Sale Price Amount
This is the price you charge your customers. You can set this as either:
- • Per Unit: Price for each individual item
- • Total Project: Fixed price for the entire job
Units Count
Number of units you're producing. This affects material quantities and helps calculate per-unit costs for better pricing decisions on future orders.
Fixed Charge
One-time charges like setup fees, design costs, or tooling charges that don't scale with quantity. Common examples: initial design fee ($50), mold setup ($100), custom tooling ($200).
🌍 Currency Selection
Choose from 15+ supported currencies. This affects:
- • Display formatting for all monetary values
- • PDF quote generation
- • Export calculations
- • Saved project calculations
🧾 VAT/Tax Configuration
VAT Rate
Set your local tax rate (VAT, sales tax, GST, etc.). Common rates: US (varies by state), EU (15-27%), UK (20%), Canada (5-15%).
Tax Inclusive vs. Exclusive
Inclusive: Your sale price already includes tax (common in EU, UK)
Exclusive: Tax is added on top of your sale price (common in US, Canada)
💡 Pro Tips
- • Start with per-unit pricing for easier scaling and comparison
- • Include setup costs in fixed charges for small quantities
- • Know your local tax requirements - some areas require tax-inclusive pricing
- • Consider minimum order quantities to make fixed charges worthwhile
Materials & Inventory Management
Accurate material costing is crucial for profitable pricing. MakerCost supports complex material calculations including waste factors, multiple categories, and extensive unit conversions.
🏷️ Material Categories
Main Materials
Primary raw materials that become the product. Supports waste percentage calculations.
Examples: Wood, plastic filament, metal sheets, fabric, resin
Packaging
Materials used to package and ship your products to customers.
Examples: Boxes, bubble wrap, labels, tissue paper, branded packaging
Decorations
Finishing materials that enhance the product's appearance or functionality.
Examples: Paint, stain, hardware, decorative elements, adhesives
⚖️ Units & Measurements
MakerCost supports 30+ unit types across different measurement systems:
Quantity
- • Pieces
- • Sheets
Weight
- • Grams, Kilograms
- • Ounces, Pounds
Length
- • mm, cm, meters
- • Inches, feet, yards
Volume & Area
- • Liters, gallons
- • Square meters/feet
🗑️ Waste Percentage
Main materials support waste percentage to account for material loss during production. This is crucial for accurate costing in manufacturing processes.
Common Waste Percentages by Process:
- • 3D Printing: 5-10% (support material, failed prints)
- • Laser Cutting: 10-20% (kerf, layout optimization)
- • CNC Machining: 15-30% (chips, setup pieces)
- • Woodworking: 15-25% (cuts, defects, sanding)
- • Fabric Work: 10-15% (pattern layout, mistakes)
💾 Inventory Integration
For registered users, MakerCost provides a materials library where you can:
- • Save frequently used materials with costs and specifications
- • Import materials directly into projects with one click
- • Maintain consistent pricing across projects
- • Track material cost changes over time
⚠️ Common Material Costing Mistakes
- • Forgetting small materials: Screws, adhesives, finishes add up
- • Not accounting for waste: Always add 5-20% depending on process
- • Using old prices: Material costs fluctuate - update regularly
- • Ignoring packaging costs: Professional packaging affects perceived value
- • Wrong unit conversions: Double-check when mixing metric/imperial
Cost Parameters & Operating Expenses
This section captures all the costs of running your maker business beyond raw materials. These are often overlooked but are essential for sustainable pricing.
👷 Labor Costs
Labor Hours
Total time spent on this project, including:
- • Design and planning time
- • Setup and preparation
- • Active production time
- • Finishing and quality control
- • Packaging and shipping prep
Hourly Rate
What to charge per hour for your skilled work. Consider:
Rate Calculation Framework:
- • Minimum: Local minimum wage + 50%
- • Skilled trades: $25-50/hour depending on complexity
- • Specialized skills: $50-100+/hour for expert-level work
- • Consider: No benefits, no paid time off, business risk
🏭 Machine Depreciation
Equipment costs money and wears out over time. MakerCost calculates the true hourly cost of using your machines, including depreciation, maintenance, and power consumption.
Supported Machine Types
• Laser: CO2, Fiber, UV
• 3D Printing: FDM, Resin
• CNC: Router, Mill, Lathe
• Woodworking: Saws, Presses
• Textiles: Embroidery, Sewing
• Plus 60+ more types
Cost Factors
• Purchase Price: Original cost
• Depreciation: Annual % (10-25%)
• Operating Hours: Annual usage
• Maintenance: Annual service costs
• Power: kW consumption
🏢 Overhead Calculator
Business expenses that must be covered by all projects. The calculator helps you determine your hourly overhead rate across 8 key categories:
🏠 Rent/Lease
Workshop space, utilities, property costs
⚡ Utilities
Electricity, water, internet, phone
💻 Digital Infrastructure
Software, cloud services, website hosting
🛡️ Insurance & Professional
Liability, accounting, legal services
📢 Marketing & Advertising
Social media ads, business cards, shows
📝 Office Supplies
Paper, ink, packaging, general supplies
🚚 Transportation & Delivery
Vehicle costs, shipping, delivery services
🎯 Miscellaneous & Contingency
Unexpected expenses, buffer for growth
Overhead Rate Calculation
Monthly Overhead ÷ Monthly Working Hours = Hourly Overhead Rate
Example: $2,000/month ÷ 160 hours = $12.50/hour overhead rate
💡 Cost Parameter Best Practices
- • Track your time: Use timers to get accurate labor hours
- • Include all tasks: Don't forget setup, cleanup, and admin time
- • Regular rate reviews: Adjust hourly rates as skills improve
- • Machine utilization: Higher usage = lower per-hour costs
- • Overhead allocation: Update monthly for accuracy
- • Power costs: Don't ignore electricity for high-power equipment
Profit & Loss Breakdown Analysis
The P&L breakdown shows you exactly where your money comes from and where it goes. Understanding these metrics is crucial for making informed pricing decisions and growing your business profitably.
💰 Revenue Components
Gross Sale Price
Total amount charged to customer including VAT/tax (if applicable). This is what appears on your invoice.
Net Sale Price
Revenue after removing VAT/tax. This is the money actually available for covering costs and profit.
Shipping Revenue
Additional revenue from shipping charges (when quotes include shipping costs).
📊 Cost Structure
Direct Costs (Cost of Goods Sold)
- • Main Materials: Raw materials including waste percentage
- • Packaging Materials: Boxes, protective materials, labels
- • Decorative Materials: Finishes, hardware, accessories
Operating Expenses
- • Labor Costs: Your time valued at appropriate hourly rate
- • Machine Depreciation: Equipment usage costs
- • Overhead Allocation: Your share of business operating costs
🎯 Key Profit Metrics
Gross Profit
Net Revenue - Direct Material Costs
• 60%+ = Excellent (Strong material cost control)
• 40-60% = Good (Healthy margins)
• <40% = Concerning (Review material costs)
Operating Profit (Net Profit)
Gross Profit - Operating Expenses
• 20%+ = Excellent (Strong business model)
• 10-20% = Acceptable (Room for improvement)
• <10% = Risky (Insufficient profit buffer)
🔍 What-If Analysis
The What-If Matrix helps you explore different pricing scenarios by showing how changes in price and quantity affect your profitability. This is invaluable for:
- • Volume discounting: Find the break-even point for quantity discounts
- • Price optimization: See the profit impact of price changes
- • Market positioning: Compare profitability across different price points
- • Customer negotiations: Know your minimum acceptable prices
⚠️ Profit Analysis Red Flags
- • Negative net profit: You're losing money - raise prices or reduce costs
- • Low gross profit (<40%): Material costs too high relative to price
- • High material percentage (>60%): Consider cheaper alternatives or price increase
- • Labor below minimum wage: You're undervaluing your skills
- • Zero overhead allocation: Business expenses aren't covered
- • Inconsistent per-unit margins: Pricing strategy needs refinement
💡 Profit Optimization Tips
- • Track trends: Monitor profit margins across projects to identify patterns
- • Price testing: Use What-If analysis before committing to prices
- • Cost reduction focus: Small material cost reductions have big profit impacts
- • Value-based pricing: Price on value delivered, not just cost-plus
- • Minimum margins: Set minimum acceptable profit margins and stick to them
- • Volume strategies: Use quantity breaks to encourage larger orders
Professional Quote Generation
Transform your calculations into professional, customer-ready quotes. MakerCost's quote system supports multi-product quotes, shipping integration, discounts, and professional PDF export.
📄 Quote Components
Project Information
- • Project Name: Internal reference for your records
- • Client Name: Customer or company name
- • Quote Number: Auto-generated unique identifier
- • Project Date: Quote creation date
- • Delivery Date: Expected completion date
- • Payment Terms: Payment conditions (Net 30, etc.)
Product Details
- • Product Name: What you're making
- • Quantity: Number of units
- • Unit Price: Price per item
- • Total Price: Extended line total
- • Materials List: Optional breakdown
- • Specifications: Custom requirements
🛒 Multi-Product Quotes
Create comprehensive quotes with multiple products, each with their own calculations and pricing:
Product Switching
Switch between products in a quote to adjust calculations while preserving all data.
Independent Pricing
Each product maintains its own materials, labor, and cost parameters for accurate pricing.
Unified Quote
All products combine into a single professional quote with totals and terms.
🚚 Shipping Integration
Add shipping costs directly to quotes with flexible configuration options:
Shipping Options
- • Customer pays actual shipping cost
- • Fixed shipping rate
- • Free shipping (absorbed in product price)
- • Local pickup option
VAT/Tax Handling
- • Shipping VAT inclusive or exclusive
- • Separate tax calculation for shipping
- • Automatic P&L impact calculation
- • Professional invoice formatting
💸 Discount Management
Apply percentage-based discounts while maintaining visibility into profit impact:
⚠️ Discount Strategy Guidelines
- • Volume discounts: Offer discounts for larger quantities to reduce per-unit costs
- • Repeat customers: 5-10% discount for loyal clients
- • Early payment: 2-3% for payment within 10 days
- • Monitor margins: Ensure discounts don't eliminate profit
- • Set minimums: Don't discount below break-even point
📁 Quote Management
Draft Status
Work in progress quotes that can be modified and refined before sending to customers.
Final Status
Completed quotes ready for customer presentation with locked calculations.
Completed Status
Accepted and delivered projects for historical tracking and business analysis.
📄 PDF Export Features
Generate professional PDF quotes that represent your business professionally:
Professional Formatting
- • Company branding and logo
- • Professional layout and typography
- • Clear pricing tables
- • Terms and conditions
- • Contact information
Customization Options
- • Include/exclude cost breakdown
- • Show per-unit pricing
- • Custom notes and specifications
- • Delivery and payment terms
- • Project timeline information
💡 Quote Best Practices
- • Clear descriptions: Use specific product names and specifications
- • Realistic timelines: Add buffer time for unexpected delays
- • Payment terms: Be clear about when and how you expect payment
- • Revision policy: Include terms for design changes and revisions
- • Expiration date: Set quote validity period (30-60 days typical)
- • Professional presentation: Well-formatted quotes win more business
- • Follow up: Contact customers within a week of sending quotes
Ready to Start Pricing Like a Pro?
Use the MakerCost calculator to apply everything you've learned and optimize your business pricing.
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