{
  "slug": "kitting-assembly-cost",
  "title": "Kitting & Assembly Cost Calculator",
  "heading": "Kitting & Assembly Cost Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/kitting-assembly-cost",
  "summary": "Labor, component, and packaging cost per assembled kit.",
  "description": "Kitting — pre-assembling multiple SKUs into a single sellable unit — adds a value-added service fee on top of standard fulfillment, but pricing it wrong is easy because assembly time varies enormously by component count and complexity. This calculator computes cost per kit from assembly labor time, component costs, and kit-specific packaging, then compares that to a proposed kitting fee to show margin per kit and per month at your volume. Kitting decisions also carry an inventory timing trade-off: building kits ahead of demand (make-to-stock) ties up capital and space in a static combination that might not match final demand mix, while building kits per order (make-to-order) adds labor time to the order cycle but keeps components flexible until the last possible moment.",
  "formula": "Cost per kit = Assembly labor time × wage + Σ component costs + Kit packaging cost.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=kitting-assembly-cost",
  "inputs": [
    {
      "id": "assemblyMinutes",
      "label": "Assembly time per kit",
      "kind": "number",
      "hint": null,
      "default": 4.5,
      "unit": "min",
      "min": 0,
      "max": null
    },
    {
      "id": "wage",
      "label": "Burdened hourly wage",
      "kind": "number",
      "hint": null,
      "default": 20,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "componentCost",
      "label": "Total component cost per kit",
      "kind": "number",
      "hint": null,
      "default": 8.4,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "kitPackaging",
      "label": "Kit-specific packaging cost",
      "kind": "number",
      "hint": null,
      "default": 1.1,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "kitFee",
      "label": "Kitting fee charged",
      "kind": "number",
      "hint": null,
      "default": 4.5,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "kitsPerMonth",
      "label": "Kits assembled per month",
      "kind": "number",
      "hint": null,
      "default": 6000,
      "unit": null,
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "marginPerKit",
      "label": "Margin per kit (labor+packaging fee)",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "laborCost",
      "label": "Assembly labor cost per kit",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "monthlyKittingMargin",
      "label": "Monthly kitting margin",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "monthlyKittingRevenue",
      "label": "Monthly kitting fee revenue",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Assembly time per kit: 4.5 min",
      "Burdened hourly wage: 20 $",
      "Total component cost per kit: 8.4 $",
      "Kit-specific packaging cost: 1.1 $",
      "Kitting fee charged: 4.5 $",
      "Kits assembled per month: 6000"
    ],
    "outputs": [
      "Margin per kit (labor+packaging fee): $1.90",
      "Assembly labor cost per kit: $1.50",
      "Monthly kitting margin: $11,400",
      "Monthly kitting fee revenue: $27,000"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter assembly time per kit (min).",
      "Enter burdened hourly wage ($).",
      "Enter total component cost per kit ($).",
      "Enter kit-specific packaging cost ($).",
      "Enter kitting fee charged ($).",
      "Enter kits assembled per month.",
      "Read your margin per kit (labor+packaging fee) on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "assemblyMinutes": 2.6999999999999997,
        "wage": 12,
        "componentCost": 5.04,
        "kitPackaging": 0.66,
        "kitFee": 2.6999999999999997,
        "kitsPerMonth": 3600
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "assemblyMinutes": 4.5,
        "wage": 20,
        "componentCost": 8.4,
        "kitPackaging": 1.1,
        "kitFee": 4.5,
        "kitsPerMonth": 6000
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "assemblyMinutes": 7.2,
        "wage": 32,
        "componentCost": 13.440000000000001,
        "kitPackaging": 1.7600000000000002,
        "kitFee": 7.2,
        "kitsPerMonth": 9600
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Should component cost be included in the kitting fee margin?",
      "a": "Usually not — component cost is typically passed through to the client at cost or billed separately as inventory, since it's the client's product being combined, not a 3PL cost input. The kitting fee margin calculation here excludes component cost by design and focuses on what the 3PL actually controls: labor efficiency and packaging cost."
    },
    {
      "q": "Make-to-stock or make-to-order kitting — which is cheaper?",
      "a": "Make-to-stock (pre-building kits ahead of orders) is cheaper per unit because assembly can be batched efficiently, but it locks capital into a specific SKU combination and creates obsolescence risk if the kit composition changes or demand doesn't materialize as forecast. Make-to-order costs more per unit in labor time but eliminates that inventory risk — the right choice depends on demand predictability and kit complexity."
    },
    {
      "q": "How much does component count affect assembly time?",
      "a": "Assembly time scales roughly linearly with component count for simple kits (grab, verify, place), but complex kits requiring custom folding, shrink-wrapping, or multi-step assembly can take 2-3x longer than a simple bundle with the same component count. Time-study your actual kit types rather than assuming a flat rate across all kit complexity levels."
    },
    {
      "q": "What's a competitive kitting fee?",
      "a": "Simple 2-3 component bundles typically run $0.75-$2.50 per kit in fee; complex multi-component kits with custom packaging or assembly steps can run $4-$10+ per kit. Benchmark against your actual labor cost calculated here plus target margin rather than copying a competitor's rate card, since your labor efficiency and wage rate directly change what's profitable."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/3pl-pricing-quote",
    "https://www.revenuelab.fyi/toolbox/dunnage-packaging-cost",
    "https://www.revenuelab.fyi/toolbox/pick-rate-labor-cost"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Kitting & Assembly Cost Calculator (https://www.revenuelab.fyi/toolbox/kitting-assembly-cost)"
}