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How it works
How figures are calculated
From a line in a recipe to the profit of a period, with a worked example.
Cost of a recipe
For a given date, each line costs its quantity times the ingredient’s price on that date. A sub-recipe line costs its share of that recipe’s batch cost. The lines add up to the batch cost, and dividing by the yield gives the cost per unit.
| Line | Quantity | Price | Cost |
|---|---|---|---|
| Bread flour | 6 kg | €1.10 per kg | €6.60 |
| Whole wheat flour | 1 kg | €1.40 per kg | €1.40 |
| Sea salt | 150 g | €0.80 per kg | €0.12 |
| Sourdough starter | 1.5 kg | €0.60 per kg | €0.90 |
| Batch cost, yielding 12 pieces | €9.02 |
So one loaf costs €9.02 ÷ 12 = €0.75 in ingredients.
Labor on a product page
The product page estimates labor by the minute:
- Take the baking share of each person’s pay: pay × hours baking ÷ hours employed.
- Divide the total by the minutes baked in a month: hours baking per week × 52 ÷ 12 × 60.
- Multiply by the product’s minutes per unit.
With €2,340 of baking pay and 30 hours baking per week, a month has 7,800 baking minutes, so a minute costs €0.30. A loaf taking 6 minutes carries €1.80 of labor.
Margin on a product page
| Per loaf | Amount |
|---|---|
| Selling price | €6.50 |
| Ingredients | −€0.75 |
| Margin before labor | €5.75 |
| Labor | −€1.80 |
| Margin | €3.95, or 61% of the price |
This is an estimate using today’s prices. It needs no sales history, so it’s available the moment you add a product.
In the Overview
The Overview works from what actually happened in the period, using the values that applied on each date.
- Ingredient cost is what you baked. What sold is included, and so is each product’s leftover: baked minus sold over the period, costed on its bake days. Something that sells after the period counts as not sold.
- Fixed costs and pay accrue per day: each month’s amount, divided by that month’s number of days.
- Profit per product is revenue minus ingredient cost and the product’s share of fixed costs and labor.
That’s why a product’s profit in the Overview differs from the margin on its page: the Overview includes waste, rent and all your pay.