Free Craft Pricing Calculator
Stop guessing what to charge. Enter your costs and markup to find a price that actually pays you back.
Selling multiple products? Craftybase calculates the true cost of every product automatically — materials, labor, and overhead included.
Try free for 14 daysHow to Price Your Handmade Products (Quick Answer)
Add your material cost and labor cost together to get your total production cost. Then apply a markup percentage to arrive at your selling price. The standard formula is: Selling Price = (Material Cost + Labor Cost) × (1 + Markup %). Most handmade sellers use a markup of 100–200%, which gives a profit margin of 50–67%. The profit you keep after covering costs is your margin.
Suggested Selling Price
$40.00
Based on your costs and markup
- Materials & Labor
- $20.00
- Your Profit
- $20.00
- Profit Margin
- 50.00%(of your selling price)
Typical markup ranges by market
| Sales channel | Markup | Margin |
|---|---|---|
| Etsy / online | 100–200% | 50–67% |
| Craft fairs | 150–250% | 60–71% |
| Wholesale to retailers | 50–100% | 33–50% |
| Boutique / consignment | 200–300% | 67–75% |
How to Use the Craft Pricing Calculator
This calculator uses a markup-based pricing model — the most common approach for handmade sellers on Etsy, at craft fairs, and in online shops.
The three inputs
Price Markup (%) — The percentage you add on top of your production costs to set your final price. A 100% markup means you double your costs. Start with 100% and adjust based on your market. Learn more about the difference between markup and profit margin before deciding what's right for your business.
Labor Cost ($) — What your time is worth per unit. Calculate this by multiplying your desired hourly rate by the hours you spend making one item. This is the number most makers forget — and the reason most handmade businesses undercharge. For detailed guidance, read our post on how to calculate your handmade labor costs.
Material Cost ($) — The total cost of every raw material and supply that goes into one unit. Include ingredients, packaging, labels, and consumables. To find your true material cost, you need to calculate a cost per unit for every material based on what you paid and how much you used — not just the packet price.
Reading the results
The Suggested Selling Price is what you need to charge at your chosen markup. The Profit Margin tells you what percentage of each sale you keep after covering costs. For example, at a 100% markup, your margin is 50% — half of every dollar you earn is yours.
Doing this calculation for every product manually?
Craftybase tracks your material costs in real time and automatically calculates the cost of every product you make — so you always know your true margin without the spreadsheet gymnastics.
Start your free trialThe Formula Explained
The calculator uses this formula:
Selling Price = (Material Cost + Labor Cost) × (1 + Markup %)
And your profit margin is:
Profit Margin = (Selling Price − Total Cost) ÷ Selling Price × 100
Worked example
You make a hand-poured candle. Your wax, wick, fragrance oil, and jar cost $8.00 in materials. It takes you 30 minutes to make, and you pay yourself $16/hour — so your labor cost is $8.00. Your total production cost is $16.00.
At a 100% markup: $16 × (1 + 1.0) = $32.00 selling price. Your profit is $16 and your margin is 50%.
At a 150% markup: $16 × 2.5 = $40.00 selling price. Your profit is $24 and your margin is 60%.
Common Craft Pricing Mistakes
Most makers undercharge — not because they don't care about profit, but because they're making these mistakes:
1. Not counting their own labor. Your time is real money. If you spend two hours making something and don't include that cost, you're effectively working for free. The labor cost calculation matters more than most new makers realize.
2. Using the packet price instead of the per-unit material cost. Buying a $20 bag of flour doesn't mean every loaf of bread costs $20. You need to calculate how much of each material goes into one unit and multiply by your cost per unit. This is the calculation most spreadsheets fail at.
3. Copying competitor prices. If you don't know your own costs, copying a competitor's price is dangerous. They might have lower costs, a wholesale supply deal, or just be undercharging themselves. Price from your costs, not from theirs. Read more about common pricing mistakes handmade sellers make.
4. Ignoring overhead. Packaging, marketplace fees, shipping materials, and utilities are real costs that chip away at your margin. This calculator keeps it simple, but a complete pricing model accounts for overhead too.
When You Outgrow This Calculator
This calculator is great for getting a quick price check on a single product. But once you're making more than a handful of different items, a few limitations show up:
- You have to manually track every material cost and update it when prices change.
- You can't account for batch production (where making 12 units at once changes your per-unit cost).
- There's no way to track what you actually made vs. what you sold.
- At tax time, calculating COGS from a calculator is a manual, error-prone process.
Craftybase solves all of this. It tracks your material costs as you buy, automatically calculates the cost of every manufactured product, and gives you real-time profit margins across your entire product range — without the spreadsheet.
Ready to know your true costs on every product?
Join thousands of makers who use Craftybase to track materials, cost recipes, and price confidently — without the spreadsheet chaos.
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Who Should Use This Calculator?
This craft pricing calculator is designed for:
- Etsy sellers figuring out whether their current prices are actually profitable
- New handmade sellers setting prices for the first time and unsure where to start
- Craft fair vendors who need to price on the spot and check margin quickly
- Soap, candle, and cosmetics makers who need to account for material costs at a per-unit level
- Jewelry makers working with expensive components who need to make sure markup covers their investment
- Anyone transitioning from hobby to business and getting serious about pricing strategy
If you're also interested in a guide to craft pricing strategy, our post on how to price your handmade products is a good place to start.
Craft Pricing Calculator — Frequently Asked Questions
To calculate the true cost of making a craft product, add your material cost (the raw materials used per unit) to your labor cost (your hourly rate multiplied by the time it takes to make one unit). Make sure your hourly rate reflects what you would pay someone else to do the work — not a discounted "it's just me" rate.
For most handmade sellers, a profit margin of 40–60% is a healthy target. That translates to a markup of 67–150%. If you sell wholesale, your margins will be lower (30–40%) because retailers need room to apply their own markup. Craft fair and direct-to-consumer sales can support higher margins of 55–70%. Learn more about markup vs. margin for handmade products.
Start by listing every material that goes into one unit of your product. For each material, calculate the cost per unit of measurement (e.g., cost per gram, per ml, per yard) by dividing what you paid by the quantity you received. Don't forget to include shipping and taxes in your purchase price. Then multiply the cost per unit by the amount you use in your recipe. Add it all up for your total material cost per product. Craftybase automates this entire process from your purchase history.
One of the most common pricing mistakes Etsy sellers make is ignoring their own labor costs entirely. A good starting point is to charge at least minimum wage for your location — but ideally what you would pay a skilled employee to do the same work. As your skill and demand grow, your hourly rate should too. Read our full guide on how to calculate handmade labor costs.
Markup is a percentage added on top of your cost. Profit margin is a percentage of your selling price. A 100% markup on a $10 product gives you a $20 price and a 50% margin. A 200% markup gives you a $30 price and a 67% margin. They're related but not the same — and confusing the two is one of the most common pricing errors. See our full explanation of markup vs. margin for makers.
Yes, completely free. This calculator is a free resource provided by Craftybase — inventory and manufacturing software for makers. No sign-up required, no cost, no catch.
Your base price (materials + labor + markup) should be consistent — but you may need to adjust for channel-specific costs. Online sales through Etsy include listing fees and transaction fees that reduce your effective margin. Craft fair sales include booth fees and travel costs. If you're consistent about including all channel costs in your pricing model, you'll avoid the trap of having the same sticker price on both channels but very different actual profits.