Craft Business Pricing Calculator
Stop underpricing your handmade products! Calculate the perfect price that covers costs, pays you fairly, and ensures healthy profits.
Material Costs
Labor Costs
Include all production time
What you want to earn per hour
Overhead & Profit Targets
Typical: 15-30%
Healthy: 40-60%
Pricing Results
Enter your costs and click Calculate to see your recommended pricing
The Professional Craft Pricing Formula
Standard Industry Formula:
Total Cost = Materials + Labor + Overhead
Wholesale Price = Total Cost × 2
Retail Price = Wholesale × 2
This 4x markup (2x for wholesale, 2x again for retail) is the craft industry standard and ensures sustainable business profits.
Why This Formula Works
- Covers All Costs: Ensures materials, time, and overhead are fully paid for
- Enables Wholesale: Allows you to sell to retailers at 50% off and still profit
- Competitive Pricing: Aligns with market expectations for handmade goods
- Business Growth: Profit margin supports marketing, equipment, and expansion
- Fair Compensation: Values your time and skill appropriately
Breaking Down Each Component
1. Material Costs
Include EVERY supply used: primary materials, adhesives, finishes, packaging, labels, business cards, shipping materials. Track costs down to the penny.
2. Labor Costs
Your time has value! Calculate actual production time (design, creation, finishing, photography, listing). Pay yourself at least minimum wage, ideally $20-$50/hour based on skill.
3. Overhead
Hidden costs that keep your business running: workspace rent, utilities, insurance, website, Etsy fees, PayPal fees, marketing, equipment depreciation, professional development.