Handmade pricing calculator: what to charge for what you make

Put in what one item takes — materials, your time, packaging, a share of overhead — and get a wholesale price, a retail price, and what you would keep on Etsy at that price, with your wage already paid.

What one item takes

$

Everything that goes into one.

$
min
$

What you would pay someone to make it.

$

A month of rent, tools and software ÷ items made a month.

Multipliers

Double and double again is the usual starting point.

How it is worked out

The cost to make one is everything one item takes: its materials, its packaging, your time at the hourly wage you set, and its share of the overhead that belongs to no single item. That is the floor — below it every sale loses money, or loses your wage.

The wholesale price is that cost times the first multiplier, and the retail price is wholesale times the second. At 2 and 2, a $20 cost becomes a $40 wholesale price and an $80 retail price. The multipliers are a starting point, not a rule: a $300 quilt and a $6 sticker do not take the same markup, and what similar work actually sells for has the last word.

The Etsy figure charges the listing fee, the 6.5% transaction fee and the 3% + $0.25 payment processing fee on the retail price, with no shipping, tax or ads, and takes the cost to make one — your wage included — away from what is left. If you want to see how a margin and a markup differ, the margin calculator shows both.

Questions people ask

How do I price handmade items?
Start from what one item costs you to make — materials, packaging, a share of your overhead, and your time at a wage you would accept — then multiply. A common starting formula doubles that cost for a wholesale price and doubles wholesale again for retail. Then check it against what similar work sells for, and adjust.
Should I pay myself in the price?
Yes. If your time is not in the cost, every sale looks profitable while you are working for nothing, and the day you hire help or wholesale to a shop the numbers stop working. Put your time in at an honest hourly rate; the profit is what is left on top of it.
Why double for wholesale and again for retail?
A shop that buys from you at wholesale needs to double it to cover its own costs and margin, so your retail price has to leave room for that — otherwise you undercut your own stockists. If you only ever sell direct, the second multiplier is your room for fees, discounts, returns and the slow months.
How do I work out overhead per item?
Add up a month of costs that are not in any one item — studio rent, tools, software, photography, the electricity for the kiln — and divide by how many items you make in a month. Thirty dollars of overhead over sixty items is fifty cents each.
What does Etsy leave me at that price?
The calculator works out Etsy’s listing, transaction and payment processing fees on the retail price and shows the profit left on top of your wage. For shipping, sales tax and Offsite Ads, open the price in the Etsy fee calculator.

Know what every batch really cost.

In Intakes a recipe states what one of your products takes, and a production run consumes the actual materials at what you paid for them — so every candle, sweater or bar of soap carries its true cost into every sale.

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