Article by: Perry Romanowski

Welcome to Day 21 of the 30 Days to Become a Better Cosmetic Chemist series

This 30 day challenge is all about giving you lessons and basic exercises that will improve your abilities as a cosmetic chemist. reducing-cost

Get your copy of the Become a Better Cosmetic Chemist workbook

In this episode

In today’s program we cover how to figure out the cost of a cosmetic formula.

In this episode you’ll find:

  • Four step method for calculating formula costs
  • Getting your formula to be consistent
  • Obtaining cosmetic raw material costs
  • Calculating component costs
  • Calculating the cost of the complete formula

Today’s challenge

For today’s challenge, I want you to figure out the cost of one of your formulas. Just follow the steps outlined above and you should be able to do it.

Cosmetic Formula Costing Spreadsheet

TAGS:30 days


  1. Avatar
    Vijaykumar R Zala

    Hi perry,
    You are right any of the formulation scientist must know how to calculate the cost of formulation.
    It is very useful information.
    You are making really something difference.
    Because i know when i started my carrier in cosmetic formulation development i suffer a lot.
    But today with your blog student will learn many thing and grow up faster.

    Really appreciate your work heartly

  2. Avatar

    Hi Perry ,
    Enjoy following your blog, forum and podcasts. Extremely useful for a non-chemist:-) Just heard your “Calculation of Costs” podcast and found it very useful- will surely be using your Formula Costing Spreadsheet. Being a homebased entrepeneur, I wonder what would be a realistic max. raw material cost price/100g of e.g. a) scalp product, b) a body cream or c) a shampoo in order to make any profit? I include “green”/EcoCert rawmaterials only and target customers with skin/scalp problems (not dandruff) Realize that the airless packagings are more expensive than the raw materials- so do you have any good rule of thumbs?
    Thanks in advance.
    Best regards

    1. Avatar
      Perry Romanowski

      Those are difficult answers to provide since it would be highly dependent on your suppliers and the specific formulas you are asking about. I would think you should be able to make any product for less than $2 a pound. Some would be less but it depends on the formula.

      As far as making a profit, I’ve seen shampoos that go for $50 a bottle so that is only limited by what you can get people to pay.

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