14 Crafts with the Highest Profit Margins (With Real Cost Data)
Lip balm, macramé, art prints — which crafts actually deliver the best margins in 2026? Real material costs and gross margin percentages for 14 handmade products.
The handmade crafts with the highest profit margins are lip balm (94%), art prints (93%), macramé plant hangers (92%), and fabric scrunchies (91%), based on actual material costs and current Etsy selling prices.
14 crafts ranked by gross profit margin
| Craft | Avg. Material Cost | Avg. Selling Price | Gross Margin |
|---|---|---|---|
| Lip Balm (per tube) | $0.35 | $6.00 | 94% |
| Art Prints (5x7, in-house) | $1.50 | $20.00 | 93% |
| Macramé Plant Hangers | $2.00 | $25.00 | 92% |
| Fabric Scrunchies | $0.60 | $7.00 | 91% |
| Embroidery Hoop Art (5”) | $2.70 | $30.00 | 91% |
| Handmade Jewelry (wire-wrapped) | $2.80 | $28.00 | 90% |
| Handmade Greeting Cards (set of 6) | $1.60 | $14.00 | 89% |
| Bath Bombs | $0.80 | $7.00 | 89% |
| Scented Candles (8oz soy) | $2.70 | $20.00 | 87% |
| Handmade Soap (cold process, per bar) | $1.50 | $10.00 | 85% |
| Resin Coasters (set of 4) | $3.80 | $25.00 | 85% |
| Personalized Wooden Signs | $5.80 | $35.00 | 83% |
| Personalised Mugs (sublimation) | $4.00 | $18.00 | 78% |
| Knitted Items (beanie) | $10.00 | $45.00 | 78%* |
*Knitted items have strong material margins but are time-intensive (2-4 hours per item). Actual profit depends heavily on your labour rate. See the calculation section below.
These are gross material margins only. They don’t account for labour, packaging, Etsy fees, or overhead. Realistic net margins after all costs land at 45-55%. That’s still strong for a physical product, but it’s a very different number from the headline figures. We cover the full calculation further down.
The 14 highest-margin crafts with real cost numbers
1. Lip Balm (~94% gross material margin)
Lip balm is a surprisingly high-margin craft that most makers overlook. A basic batch of 50 tubes requires beeswax, coconut oil, shea butter, and a flavour oil. That’s roughly $17-20 in materials total, or about $0.35 per tube.
A 0.15oz lip balm tube typically sells for $5-8 on Etsy. At $6 average, that’s a 94% gross material margin.
The key advantage: once your formula is dialled in, you can produce 50-100 tubes in a single afternoon. It’s a genuinely scalable craft.
Material cost breakdown (per tube, 50-unit batch):
- Beeswax: ~$0.08
- Carrier oils (coconut, shea, castor): ~$0.12
- Flavour oil: ~$0.08
- Tube: ~$0.07
- Total: ~$0.35
Read more about how to start a handmade cosmetics business →
2. Art Prints (~93% gross material margin)
If you create digital art or illustrations, selling prints is about as margin-efficient as it gets. Printing a 5x7 in-house (quality inkjet paper + ink) costs around $1-2. At a selling price of $15-25, you’re looking at gross margins north of 90%.
Even if you outsource printing through a print-on-demand service, margins remain strong. Typically 60-70% depending on platform and print size, with zero inventory risk.
The real advantage here is that a single original design can generate revenue indefinitely, with no additional creative labour per sale.
Material cost breakdown (5x7 in-house print):
- Archival paper: ~$0.60
- Ink (prorated): ~$0.40
- Packaging (sleeve + backing board): ~$0.50
- Total: ~$1.50
3. Macramé Plant Hangers (~92% gross material margin)
Macramé plant hangers have surged in popularity on Etsy, and the margin numbers explain why makers keep coming back to them. A single hanger uses around 15-20 metres of 3mm cotton rope and a wooden ring, totalling about $2.00 in materials.
Mid-range macramé plant hangers sell for $20-30, with larger or custom designs reaching $40-60. At $25 average, that’s a 92% gross material margin.
The main variable is time. A simple plant hanger takes 1-2 hours, while intricate patterns with multiple knot styles take considerably longer. At $20-25 average selling price and 1.5 hours per piece, the effective hourly is modest but the material efficiency is excellent.
Material cost breakdown (standard plant hanger):
- Cotton macramé cord (20m, 3mm): ~$1.50
- Wooden ring (4 inch): ~$0.30
- Additional fringe cord: ~$0.20
- Total: ~$2.00
4. Fabric Scrunchies (~91% gross material margin)
Scrunchies look deceptively simple, and the margins reflect that. A single scrunchie uses a quarter-yard of fabric and a length of elastic, coming in at around $0.60 in materials. They sell for $5-9 on Etsy, with specialty fabrics or coordinated sets commanding higher prices.
The real advantage is batch production. Once your sewing machine is set up, you can produce 10-15 scrunchies in an hour, making the effective hourly rate considerably better than most handmade crafts.
Material cost breakdown (per scrunchie):
- Quilting cotton fabric (quarter-yard): ~$0.40
- Elastic (12 inches, 1/4” wide): ~$0.08
- Thread (prorated): ~$0.05
- Packaging (organza bag): ~$0.07
- Total: ~$0.60
Selling price: $5-9 (avg $7). Gross material margin: 91%.
5. Embroidery Hoop Art (~91% gross material margin)
Hand embroidery framed in a wooden hoop is a staple in the handmade art market. A 5-inch hoop piece uses roughly $2.70 in materials and sells for $22-40 on Etsy, depending on design complexity and finishing.
The learning curve is the real barrier. Fine embroidery takes practice before it’s saleable. But once you have a set of repeatable patterns, consistent production is very achievable, and repeat buyers are common.
Material cost breakdown (5” embroidery hoop):
- Wooden embroidery hoop (5”): ~$1.00
- Linen fabric (6x6” piece): ~$0.50
- DMC embroidery thread (several colors): ~$1.00
- Felt backing circle: ~$0.20
- Total: ~$2.70
Selling price: $25-40 (avg $30). Gross material margin: 91%.
6. Handmade Jewelry (Wire-Wrapped) (~90% gross material margin)
Wire-wrapped jewelry using semi-precious stones and sterling silver wire can sell for $20-50 for relatively simple pieces, while material costs stay well under $5.
The key is working with mid-tier materials: genuine stones and quality wire rather than cheap plastic beads. Customers can tell the difference, and they’ll pay for it.
Material cost breakdown (wire-wrapped pendant):
- 20-gauge sterling wire (6 inches): ~$0.50
- Semi-precious stone (amethyst, labradorite): ~$1.50
- Sterling chain (18 inches): ~$0.80
- Total: ~$2.80
Selling price: $20-35 (avg $28). Gross material margin: 90%.
Read more about running a profitable jewelry business →
7. Handmade Greeting Cards - Set of 6 (~89% gross material margin)
A quality handmade greeting card set has a strong margin because the core materials (cardstock, watercolor paint or stamps, envelopes) are inexpensive in bulk. A set of 6 cards costs roughly $1.60 to produce and sells for $12-16 on Etsy.
What makes cards work commercially is perceived uniqueness. Buyers pay more for a set that looks genuinely handcrafted than for a mass-produced equivalent. Keeping designs consistent across a product range also speeds production considerably once the templates are established.
Material cost breakdown (set of 6 cards):
- Cardstock (6 sheets): ~$0.50
- Watercolor/stamp supplies (prorated): ~$0.40
- Envelopes (6): ~$0.40
- Cellophane sleeve for packaging: ~$0.30
- Total: ~$1.60 per set
Selling price: $12-16 (avg $14). Gross material margin: 89%.
8. Bath Bombs (~89% gross material margin)
Bath bombs have a low material cost because the core ingredients (baking soda, citric acid, cornstarch) are cheap in bulk. A single bath bomb requires about $0.80 in materials and sells for $6-8.
The challenge is consistency: getting the fizz reaction right, ensuring they don’t activate early from humidity, and producing them at a reliable rate. Once your formula is locked in though, bath bombs are highly scalable.
Material cost breakdown (per bath bomb):
- Baking soda + citric acid + cornstarch: ~$0.35
- Carrier oil (coconut, sweet almond): ~$0.15
- Essential/fragrance oil: ~$0.18
- Colorant + mica: ~$0.07
- Packaging (shrink wrap): ~$0.05
- Total: ~$0.80
9. Scented Candles, Soy 8oz (~87% gross material margin)
Candles consistently appear on “high-margin crafts” lists, and the numbers back it up. An 8oz soy candle costs roughly $2.70 to make and sells for $18-24 on Etsy.
One thing to nail early: how to calculate your fragrance load. Getting the fragrance-to-wax ratio right is the difference between a candle that throws scent beautifully and one that pools, sweats, or smells faint. It also directly affects your material costs.
Material cost breakdown (8oz soy candle):
- Soy wax (8oz): ~$0.80
- Fragrance oil (6% load): ~$0.60
- Cotton wick: ~$0.10
- Glass jar: ~$1.20
- Total: ~$2.70
Selling price: $18-24 (avg $20). Gross material margin: 87%.
Read more about running a profitable candle business →
Craftybase has a dedicated candle cost calculator if you want to model different batch sizes and fragrance loads.
10. Handmade Soap, Cold Process (~85% gross material margin)
Cold process soap scales exceptionally well among high-margin crafts. A single 8-bar batch requires lye, water, and oils (olive, coconut, castor), around $12 in materials for 8 bars, or $1.50 per bar.
Artisan soap sells for $7-14 per bar depending on ingredients, presentation, and market. At $10 average, that’s an 85% gross material margin.
The overhead to watch: lye requires careful storage and handling, and cold process soap needs 4-6 weeks to cure before it’s ready to sell. Factor that curing time into your cash flow planning.
Material cost breakdown (per bar, 8-bar batch):
- Oils (olive, coconut, castor): ~$0.90
- Lye (NaOH): ~$0.20
- Essential/fragrance oils: ~$0.25
- Colorant: ~$0.08
- Mold amortisation: ~$0.07
- Total: ~$1.50
Read more about soap making software and inventory tracking →
Craftybase also has a free soap making cost calculator to model ingredient costs per batch.
11. Resin Coasters - Set of 4 (~85% gross material margin)
Resin crafts have become popular precisely because the material costs are low relative to what customers will pay for a finished piece. A set of 4 coasters uses roughly $3.80 in resin, colorants, and inclusions and can sell for $20-30.
The main overhead with resin is time: most pieces require 24-48 hours of curing before demolding, and sanding and finishing adds more. Model your labour carefully before setting prices.
Material cost breakdown (set of 4 coasters):
- Epoxy resin (200ml): ~$2.50
- Alcohol ink / mica pigment: ~$0.50
- Dried flowers / inclusions: ~$0.30
- Silicone mold amortisation: ~$0.50
- Total: ~$3.80
12. Personalized Wooden Signs (~83% gross material margin)
Wooden signs with custom text, quotes, or family names are a perennial bestseller. A blank wood panel, some paint, and a vinyl cutter or stencils can produce a piece that sells for $28-45.
The initial investment in a vinyl cutter or Cricut is significant, but it amortises quickly across hundreds of signs. Once you have templates built, production time per sign drops considerably.
Material cost breakdown (medium sign, approx 12x6 inches):
- Wood blank: ~$4.00
- Paint/stain: ~$0.80
- Vinyl or stencil material: ~$0.80
- Hardware (hanging, ribbon): ~$0.20
- Total: ~$5.80
Selling price: $28-45 (avg $35). Gross material margin: 83%.
13. Personalised Mugs via Sublimation (~78% gross material margin)
Sublimation printing onto coated mugs is one of the more accessible entry points for personalized products. A coated blank mug runs $3-4, and sublimation paper plus ink adds another $0.50. Selling price for a customised mug is typically $15-22.
The equipment investment (a heat press and sublimation printer) is the main barrier, but ongoing material costs are genuinely low.
14. Knitted and Crocheted Items (~78% material margin, but time matters)
Yarn-based crafts have reasonable material margins. A beanie uses $8-12 in yarn and sells for $35-55. But the real calculation is hourly: a single beanie takes 2-4 hours to make.
At $45 selling price and 3 hours labour, you need your material plus labour costs to stay under $45 to make a profit.
At $12/hr labour, 3 hours costs $36, leaving just $9 ($45 minus $10 materials minus $36 labour) in gross profit before fees and overhead. That’s tight.
Knitted items are worth doing if you genuinely enjoy the craft and can increase your production speed over time. But go in with realistic hourly expectations.
How do you calculate profit margin for handmade products?
Subtract all costs from your selling price, divide by the selling price, and multiply by 100 to get your net profit margin percentage. The costs you need to include: materials, labour, packaging, and marketplace fees.
The formula:
Net Profit Margin = (Selling Price minus Materials minus Labour minus Overhead minus Fees) divided by Selling Price, times 100
The table above shows gross material margins: what’s left after subtracting material costs from your selling price. But before you can know your real margin, you need your true COGS. Without it, your profit percentage is just a guess, and guessing is how makers discover mid-season that their bestseller is barely breaking even.
To get the full picture, account for:
- Material costs (what we’ve calculated above)
- Labour: your time, at a rate you’ve set for yourself
- Overhead: packaging, shipping supplies, equipment depreciation, listing fees
- Marketplace fees: Etsy takes around 6.5% transaction plus listing fees; PayPal or Stripe adds another 3%
Worked Example: The Real Margin on a Soy Candle
Let’s take that 8oz soy candle from above and run a complete calculation.
Selling price: $20.00
| Cost | Amount |
|---|---|
| Materials (wax, fragrance, wick, jar) | $2.70 |
| Labour (15 mins @ $15/hr) | $3.75 |
| Packaging (box, tissue, sticker) | $1.00 |
| Etsy fees (~10% inc. listing) | $2.00 |
| Total costs | $9.45 |
| Net profit | $10.55 |
| Net profit margin | 52.8% |
A 52.8% net margin is genuinely good for a physical product. The gross material margin of 87% is impressive, but the real number is closer to 53% once you account for your time and fees.
That’s still profitable. But it’s very different from the headline margin figure, and it’s why understanding your cost of goods sold matters so much.
How Craftybase Calculates This Automatically
Manually tracking costs across multiple products, batch sizes, and ingredient prices gets unwieldy fast. And without accurate COGS, you can’t trust your margin numbers, which means you can’t trust your pricing.
Craftybase handles it with recipe costing: you enter your ingredients and quantities once, and it calculates the cost per unit automatically, updating every time ingredient prices change.
Here’s what that looks like for the candle example:
- Add your materials (soy wax, fragrance oil, cotton wicks, jars) with their purchase costs
- Create a “recipe” for your 8oz candle, specifying quantities used per unit
- Craftybase calculates your material cost per candle ($2.70) automatically
- Add your labour rate and it produces a full cost card per product
When you get a better deal on fragrance oil, the cost updates across every product that uses it. No spreadsheet maintenance required.
Use our free craft pricing calculator to model your margins before committing to a price.
Why Most Makers Underestimate Their Real Costs
The most common mistake is only counting the obvious materials: the wax, the yarn, the paint. What gets missed:
- Packaging: Boxes, tissue paper, stickers, and ribbon add $0.50-2.00 per order
- Labour for admin: Photographing, listing, responding to messages. None of this is free.
- Equipment depreciation: Your KitchenAid, heat press, or vinyl cutter cost money to replace eventually
- Failed batches: Every candle that tunnelled or soap bar that seized is a cost to absorb
The makers who build sustainable businesses are the ones who know their true costs, not just their material costs. Once you have accurate numbers, pricing becomes straightforward. You stop guessing and start setting prices with confidence.
Tips for Maximising Craft Profit Margins
Buy materials in bulk where it makes sense. Fragrance oils, soy wax, beeswax: these are all cheaper per unit at higher quantities. Compare the per-unit cost, not the sticker price. Just be careful not to over-invest in materials you might not use.
Track your inventory so you’re not over-buying. Money tied up in shelves of unused materials is dead cash. Good craft inventory management means you buy what you need, when you need it.
Increase perceived value, not just the quantity. Thoughtful packaging, a handwritten note, and a consistent aesthetic can let you charge $22 for a candle that sits next to $15 candles. You don’t have to compete on price.
Benchmark your time honestly. Pick 3-5 products, time yourself making them, and calculate your hourly effective rate. You might find some products aren’t worth making at your current speed, or that getting faster would change everything.
Raise your prices. If you’ve never raised your prices and your products sell consistently, you’re almost certainly underpriced. A price increase of 10-15% rarely kills demand, and it directly improves your margin on every single sale.
Frequently Asked Questions
What craft has the highest profit margin?
On a material-cost basis, lip balm has the highest gross margin at around 94%. A tube costs roughly $0.35 to make and sells for $6. Art prints follow at 93%, with macramé plant hangers and fabric scrunchies both around 91-92%. Gross material margin is not the same as actual profit, though. Labour, fees, and packaging reduce the real number to 45-55% for most crafts.
What is a good profit margin for handmade crafts?
A net profit margin of 40-60% is a solid benchmark for handmade products sold directly to consumers. This accounts for materials, labour, packaging, and marketplace fees. Gross material margins are much higher (70-90%+), but they are not the same as what you actually keep. If your net margin falls below 25%, it's worth reviewing your pricing, material costs, or production efficiency.
How do I calculate profit margin for handmade products?
To calculate your net profit margin: subtract all costs (materials + labour + packaging + fees) from your selling price, divide by the selling price, and multiply by 100. For example, a $20 candle with $9.45 in total costs has a net profit margin of 52.8%. The most common mistake is only counting materials. Craftybase calculates this automatically using recipe costing, so your cost per unit updates whenever ingredient prices change.
Are candles a profitable craft to sell?
Yes. Candles rank among the consistently profitable handmade crafts. An 8oz soy candle costs roughly $2.70 in materials and sells for $18-24, giving a gross material margin around 87%. After factoring in labour (15 minutes per candle), packaging, and Etsy fees, a realistic net margin is 50-55%. The real advantage is scalability: once your fragrance load and pour temperature are dialled in, you can produce dozens of candles per session with predictable results.
What handmade crafts sell best on Etsy?
The consistently top-selling categories on Etsy include personalized jewelry, home decor, candles, bath and beauty products, and art prints. High sales volume does not always mean high margin though. Some popular items have tight margins because of saturated competition. The ideal combination is a craft that sells well and has strong margins: candles, soap, jewelry, and bath bombs all sit in that intersection. Always research your specific niche before investing in materials and equipment.
How does COGS affect my craft business profitability?
Cost of Goods Sold (COGS) is the total cost of materials and direct labour used to produce the items you sell in a given period. It directly reduces your gross profit and affects what you owe in taxes. Makers who don't track COGS accurately often underestimate their costs, underprice their products, and discover too late that a "busy" month was actually unprofitable. Tracking COGS is also required for accurate tax filing if you carry inventory. Learn how to calculate COGS for your craft business →
