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Price your handmade products in three steps

A short path for makers who sell on Etsy, at craft fairs, or wholesale. Have one product in mind and your supply receipts nearby.

The three steps

Each step builds on the last. The calculator does the math, and every formula is published on our How We Calculate page.

1

Gather your real costs

List the materials and packaging that go into one item, the minutes it takes to make, and the monthly costs you cannot tie to one product, such as tools, booth fees, and software.

2

Run the calculator

Enter your costs, an hourly rate you would accept, and a target margin. The calculator shows a retail price, a wholesale price, and what Etsy and craft fair fees leave you.

3

Check the market, then decide

Type in what similar items sell for. Market check shows what you would earn per hour at that price, so you can raise the price, cut a cost, or rethink the product.

Four terms worth knowing first

Most pricing mistakes come from mixing these up. Each one has a small example you can check.

Cost of goods sold (COGS)

The direct cost of the items you actually sold: mainly the materials and supplies that go into each product.

Wax $2.40 + wick $0.20 + jar $1.50 = $4.10 per candle

Markup vs margin

Markup is profit as a share of cost. Margin is profit as a share of the price. They are not the same number.

Cost $10, price $20: 100% markup, 50% margin

Overhead

Business costs that are not tied to one item, such as tools, booth fees, website and software. Spread them across the items you make.

$60 a month over 120 items = $0.50 per item

Wholesale price

What you charge a shop that resells your product. Shops usually need room to double it, so your retail price has to cover both.

Retail $24, wholesale $12

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