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How to calculate wet wipes production cost
Pack cost is made up of 9 items. Miss just one and it eats into your profit.
This guide shows you step by step, using a real example, how to calculate the cost of a pack of wet wipes item by item: fabric, solution, packaging, overheads, waste and profit.
The pack cost formula
Wet wipes cost is always calculated per pack. Order, carton and shipping costs are also spread across each pack.
- NonwovenFabric weight (g) = wipe width (m) × length (m) × basis weight (g/m²) × number of sheets. Multiply by the price per kilogram.
- SolutionSolution (kg) = dry fabric (kg) × loading ratio. The cost per kilogram comes from the proportions of water, premix and fragrance in the formulation.
- PackagingFilm consumption (g) × price per kg; the lid, resealable label, lid label and glue are added per piece or per gram.
- Cartons and shippingCarton, tape and freight costs are spread across each pack by dividing them by the number of packs per carton and the order quantity.
- OverheadsLabour, energy and general production overheads are calculated per pack by dividing the monthly total by the monthly production volume.
- WasteThe loss rate for fabric, solution and packaging is added to the material cost. Waste you forget comes straight out of your profit.
Worked example: 72-sheet baby wipes
Figures are taken from a WipeWise sample report: 180 × 160 mm, 40 g/m² nonwoven, 72 sheets, an order of 24,000 packs, 3% material waste. Prices are examples and exclude VAT.
0.18 m × 0.16 m × 40 g/m² × 72 sheets = 82.944 g of fabric
0.082944 kg × $1.80/kg × 1.03 (waste) = $0.1539
1,000 L formulation: 977 L water ($0.002/L) + 20 L premix ($3/L) + 3 L fragrance ($12/L) = $0.0980/kg
82.944 g × 4 (loading ratio) = 331.8 g solution × 1.03 (waste) = $0.0335
Film: 6 g × $2.50/kg × 1.03 = $0.0155
Lid: $0.035 × 1.03 = $0.0361 · Labels and glue: $0.0169
Cost breakdown per pack
Figures are rounded. In this example, nonwoven accounts for almost half of the cost; the second-largest item is the plastic lid. With your own prices, the result will differ.
Profit: markup on cost or margin on price?
At the same percentage, the two methods give different prices. Quoting a price without knowing which one you use is the most common mistake.
Selling price = cost × (1 + rate)
$0.3382 × 1.25 = $0.4228 (25% markup)
Selling price = cost ÷ (1 − rate)
$0.3382 ÷ 0.75 = $0.4509 (25% margin)
The same 25% makes a difference of $0.028 per pack. On an order of 24,000 packs, that comes to about $676.
Common mistakes
The items most often overlooked in cost calculations.
- Ignoring waste. There is always some loss of fabric, solution and packaging; even 3% waste adds up to a serious amount at high volumes.
- Costing the solution at the premix price alone. The cost of the finished solution comes from the proportions of water, premix and fragrance in the formulation; the loading ratio also directly changes the pack cost.
- Forgetting the lid, labels and glue. Small on their own, these items make up about 16% of the cost in our example.
- Not spreading cartons, tape and freight across each pack. If shipping costs are not divided per pack, profit melts away on export orders.
- Confusing markup with margin. When you say “25% profit”, make it clear to your customer and your team which method you mean.
- Assuming the exchange rate and currency stay fixed. If you buy raw materials in foreign currency and sell in local currency, redo the calculation at the current exchange rate.
Calculate it in 4 steps with WipeWise
WipeWise does the entire calculation on this page for you and delivers it as a 3-page PDF report.
- ProductProduct type, wipe size, fabric weight, wipe count, order and carton quantities, waste.
- SolutionWater, premix and fragrance quantities and prices; solution cost per kilogram.
- PackagingPackaging film, lid, labels, glue, carton and tape; display boxes and single sachets included.
- OverheadsLabour, energy, general production overhead, shipping and target profit rate.
Frequently asked questions
How much does a pack of wet wipes cost to produce?
It depends on product type, sheet size, basis weight, packaging and raw material prices. For the 72-sheet baby wipes with lid in our sample report, the pack cost came to $0.3382; with your own prices, the result will be different.
What affects wet wipes cost the most?
Usually the nonwoven fabric. In our example, about 45% of the cost comes from the fabric; a small change in basis weight or sheet size directly affects the cost.
How is the solution cost calculated?
First, the cost per kilogram of finished solution is worked out from the proportions of water, premix and fragrance in the formulation. Then the dry fabric weight is multiplied by the loading ratio to get the amount of solution per pack.
How is the waste rate factored in?
Material cost is multiplied by (1 + waste rate). For 3% waste, the fabric, solution and packaging costs are multiplied by 1.03.
How should I set my profit rate?
First decide whether you will use markup on cost or margin on price. Also take into account prices in your target market and shipping costs.
Can I do this calculation in Excel?
Yes, using the formulas on this page. WipeWise, however, saves your formulations, allocates waste, cartons and freight automatically, generates the raw material list for each order and prepares a PDF report.
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