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MakerMargin

Handmade Pricing Calculator

The classic craft mistake is pricing materials times two — which quietly pays nothing for your hours. This calculator takes the real formula: materials at package price, labor at your actual rate, packaging, and selling fees, then works forward to a price that leaves the margin you choose. Works for jewelry, knitting, pottery, woodworking, and anything made by hand.

1 · Materials per batch

  • $0.06 / pc → $7.19 per batch

  • $0.50 / yd → $1.25 per batch

  • $0.08 / pc → $0.80 per batch

  • $0.35 / pc → $3.50 per batch

2 · Batch, labor & extras

How many sellable units one batch produces.

Shown in the results, e.g. “dozen cookies”.

min
/hr

Energy, equipment wear, failed tests…

Bag, label, jar, sleeve for ONE unit.

3 · Margin & selling fees

%
%

Card readers, marketplace commissions, stall cuts.

Example: beaded earrings produced five pairs at a time. Everything runs in your browser — nothing is uploaded.

How to price handmade items

Craft pricing folklore says "materials times three." It sounds safe, and it quietly fails two ways: it ignores what your materials actually cost in the quantities you buy them, and it assumes nothing — marketplace fees, card readers, shipping subsidies — takes a cut of the sale. The honest version is four lines of arithmetic.

The formula that respects your time

  • Cost = materials + labor + overhead. Materials at package price (the 100-pack of beads, not the 24 you used — divide the pack by what the batch consumes). Labor at a wage you would accept from an employer. Overhead = packaging, tools amortized over their lifetime, and the failed attempts.
  • Price = cost ÷ (1 − margin − fees). Want 55% of the sale price as profit and Etsy takes 13%? Divide cost by 0.32. That is why the same $9.20 pair of earrings prices at $20.44 online but $18.60 at a cash-only craft fair — fees come out of price either way, and this formula refuses to pretend otherwise.

The hourly-rate conversation with yourself

Most makers price at $5–10 per hour without realizing it, because they set the price first and check profit later. Flip the order. If your time is worth $20/hour and a pair of earrings takes 25 minutes, labor alone is $8.33 — before a single bead. When the honest price exceeds what customers will pay, you have learned something useful: simplify the design, batch production, or find a customer who values the work. What you cannot do is volunteer hours and call it profit.

Pricing for Etsy, fairs, and everything between

Keep your base price identical in every channel — customers notice, and trust is worth more than a shipping subsidy. Model the fee difference instead: 0% cash fair, ~3% card reader, ~13% marketplace (transaction + payment + listing fees combined). If the online margin gets thin, recover it in the shipping line or an online-only styling upgrade, never by moving the sticker price.

One-of-a-kind and commission work

Treat a unique piece as a batch of one: every consumed material counted (including the pendant you cracked), every hour logged, premium packaging included. Uniqueness is part of the value, so commission and gallery pieces justify 65–70% margins — the customer is buying the only one, and your price should say so.

When to raise prices

Two honest signals: you sell out in the first hour (price is too low), or the true-margin readout on this calculator shows under 40% on your best seller. Raise in $1–2 steps and watch behavior. Craft customers rarely leave over small increases — they leave over inconsistency and out-of-stock tables.

Common questions

What is the best formula for pricing handmade items?

Materials + labor + overhead = cost, then divide by (1 − target margin) to get your price. The popular 'times three' or 'times four' rules are rough shortcuts for the same idea: multiplying cost by 3 gives a 67% margin only if nothing else eats into the sale. Because card fees, marketplace commissions, and shipping subsidies come out of your price, the margin method with fees included — what this calculator does — is more honest than any multiplier.

How do I price for Etsy and online marketplaces?

Budget roughly 10–15% of the sale price for marketplace costs: transaction fees, payment processing, and listing fees, plus offsite ads if you enroll. Enter 13 in the selling fee field as a starting point. Then check the true-margin readout at your intended price — many sellers discover their 'profitable' listing is a break-even listing once fees are counted.

What hourly rate should I pay myself?

Use the wage you would accept for the same skilled work locally — most makers undervalue themselves at $5–10/hour when their craft justifies $15–25+. Your rate is also a decision filter: if earrings take 20 minutes each and the suggested price exceeds what customers pay, simplify the design or batch more efficiently instead of absorbing the loss.

Should crafts be priced differently at fairs vs online?

Keep the base price identical everywhere — consistent pricing protects trust when customers see you in both places. What changes is fees: 0–3% at a cash fair, 13%+ online. The calculator's fee field lets you model both; if the online margin gets thin, absorb it in shipping pricing or a small online surcharge rather than moving the sticker price.

How do I handle one-of-a-kind pieces?

Treat the piece as a batch of one. Enter every material actually consumed (including the failed attempts — a cracked pendant is a real cost), your full hours, and premium packaging. One-of-a-kind work also justifies margin above your standard: 65–70% is common for gallery or commission pieces, because uniqueness is part of what the customer is buying.

Price something else

Take these numbers to market day

MakerMargin stores your recipes, deducts stock as you sell, and shows profit per product — all offline, all on your iPhone.

Download on theApp StoreFree to start — Pro is $2.99, once