How to Do Product Costing in Catalystk
Know your real product cost before you quote. Catalystk's product costing software builds a cost estimate from the bill of materials (BOM), adds labour and machine costs, and applies your markup % to give the selling price and profit margin automatically. Create it from a new costing or with one click from a BOM, download the cost estimate sheet as PDF or print it on your letterhead, and convert the costing into a quotation in one click. Free manufacturing cost calculation – no software to download.
- BOM cost
- Labour & machine
- Markup & margin
- PDF cost sheet
- Free
Before you start: create the bill of materials for the product. You can also create a costing straight from a BOM with Generate → Costing.
Open Costing and click New Costing
Every cost estimate starts from the Costing list.
- 1
Go to Manufacture → Costing
In the left menu, open Manufacture and click Costing.
- 2
Click New Costing
Click New Costing. The costing number is created when you save.
Add the costing details, markup % and BOM
The markup decides your selling price.
- 3
Fill in the cost estimate details
Enter the Costing Name, Valid From / To, the Markup % and the Currency. Link a deal with Deal Link if the costing is for one.
- 4
Add the BOM
Under Bill of Materials, add the BOM and quantity. Catalystk works out the material cost.
Add labour, machine and other costs
Add every cost on top of materials.
- 5
Add the cost lines
Under Cost Components, click + Add Cost and enter the Cost Name (for example Labour or Machine), Hours/Qty and Rate.
- 6
Check price and margin, then save
Catalystk shows the Total Cost, the Sell Price (cost + markup) and the Margin. Click Save, then PDF, Print or Letter Head to share the cost estimate.
Convert the costing into a quotation
Send the customer a quotation at your calculated selling price.
- 7
Click Quotation
In the costing header, under Generate, click Quotation.
- 8
Click Create Quotation
Confirm with Create Quotation. A quotation is created straight away, with the BOMs at the marked-up selling price, for the costing's customer.
Worked product costing example
How Catalystk turns cost into a selling price, using the cost estimate at the top of this page.
| Line | Amount (₹) |
|---|---|
| Material cost (from BOM) | 12,092 |
| Labour (10 hours × 100) | 1,000 |
| Machine (1 × 200) | 200 |
| Total cost | 13,292 |
| Markup 50% → sell price | 19,938 |
| Margin | 33.33% |
Markup is added to cost (cost × 1.5), while margin is profit as a share of the selling price – that is why 50% markup gives a 33.33% margin.
Tips for accurate product costing
- Keep your BOM prices up to date – material cost is the biggest part of most costings.
- Use Recost after changing the BOM or rates to refresh the totals.
- Set Valid From and Valid To so old costings are not used for new quotes.
- Link the costing to a deal so the quotation goes to the right customer.
Frequently asked questions
What is product costing?
Product costing works out the full cost of making a product – materials, labour, machine time and overheads – so you can set a profitable selling price.
How is the selling price calculated?
Sell price = total cost × (1 + markup % ÷ 100). With 50% markup, a cost of 13,292 gives a sell price of 19,938.
What is the difference between markup and margin?
Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. 50% markup equals a 33.33% margin.
Can I create a costing from a BOM?
Yes. Open the BOM and click Generate → Costing. The costing is created straight away.
Can I download the cost estimate as a PDF?
Yes. Click PDF to download the cost estimate, or Print or Letter Head to print it.
Can I turn a costing into a quotation?
Yes. Click Generate → Quotation and confirm. The quotation is created at the marked-up selling price.
Is the product costing software free?
Yes. Product costing is part of Catalystk's free plan – use it online, nothing to download.
What's next: plan the raw materials – MRP material planning.
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