After you get a price, compare it with your market and your actual customer value. A profitable price is a starting point for a business decision, not a promise that the market will accept any number.
This calculator lets you compare a markup-based price with a margin-based price. That distinction matters: markup is calculated from cost, while margin is calculated from selling price.
The real cost of a handmade item is usually more than the material bill. Start with the materials, then add the cost of your production time, packaging, shipping you absorb, and a fair share of overhead.
How to Price Handmade Products
What to include in handmade product cost
- Materials and supplies used in one item
- Labor hours multiplied by your target hourly rate
- Packaging and seller-paid shipping
- Overhead allocated to each item
How this calculator works
Example
With $7 materials, 0.75 hours at $20/hour, $1.50 packaging, $3 shipping, and $1 overhead, total cost is $27.50. A 100% markup gives $55.00.
Important assumptions
Results are planning estimates. Replace the default assumptions with your actual costs, rates, shipping arrangements, discounts, and sales volume. Marketplace and payment fees can change over time.