Fixed Costs per Product

By the Tagzinho team · Published October 3, 2026

Add up the business costs you pay every month whatever you make, divide by how many items you expect to sell in a month, and add the result to the cost of each item.

Which costs are fixed

Fixed costs don't change with each batch: internet, the business share of electricity or gas, software, a market stall fee, equipment you are paying off. Materials and packaging are not fixed; they belong to each unit.

Internet and phone (the business share)
Electricity or gas for an oven, a kiln or a printer
Equipment, spread over the months you expect it to last
Subscriptions, insurance and stall fees

The cost per unit

Divide the monthly total by the units you expect to sell. In our example, $120 a month over 200 candles is $0.60 a candle.

Why it matters

Leave fixed costs out and the bills come out of your pay or your profit without you noticing. With them in, the candle costs $7.94 to make, and every sale pays its share of keeping the business running.

Questions

What if I sell fewer than I expected?

Then each item carried less of the bills than it needed to. Use a careful estimate of monthly sales rather than your best month, and update it as you learn.

Should I include my tools?

Yes. Divide what a tool cost by the months you expect it to last and add that to your monthly fixed costs.

Are taxes fixed costs?

A flat monthly business fee can be. Income and sales taxes depend on where you live and how you are registered, so check with an accountant.