Handmade Pricing Calculator
Turn your costs and your time into a price you can live on. Enter materials, the minutes each item takes, your hourly rate and overheads, and the calculator adds platform fees and profit.
Built and checked by Saurabh Pandey · page updated
Calculator
Fee breakdown
Enter your material cost.
How to use the Handmade Pricing Calculator
- Add up the materials used in one item (divide bulk purchases by the number of items they make).
- Time yourself making a batch and divide by the number of items, then choose an hourly rate you would accept for any job.
- Add overheads per item: monthly costs such as tools, equipment, subscriptions and photography divided by how many items you make a month.
- Enter your platform fees and the profit you want, both as a percentage of the selling price.
How it is calculated
Labour = minutes ÷ 60 × hourly rate Cost per item = materials + labour + overheads + packaging Retail price = cost ÷ (1 − fees % − profit %) Wholesale price = cost × 2 Keystone retail = wholesale × 2
Dividing by (1 − fees − profit) makes sure the fees and your profit are taken from the selling price, which is how platforms actually charge. Simply adding 10% for fees to your costs would leave you short.
Worked examples
US: a soy candle
Total cost $12, so the price for 10% fees and 25% profit is about $18.46. Round to $18.50 or $19.
| Materials | $4.80 |
| Your time (15 min at 18/hour) | $4.50 |
| Overheads per item | $1.50 |
| Packaging | $1.20 |
| Total cost | $12.00 |
| Platform fees (10%) | $1.85 |
| Profit (25%) | $4.62 |
| Selling price | $18.46 |
Cost per item $12.00 · Retail price $18.46 · Wholesale (2× cost) $24.00
UK: a pair of hand-sewn earrings
UK Etsy shops pay closer to 13% once VAT on fees is included.
| Materials | £3.20 |
| Your time (40 min at 15/hour) | £10.00 |
| Overheads per item | £0.80 |
| Packaging | £0.90 |
| Total cost | £14.90 |
| Platform fees (13%) | £2.89 |
| Profit (20%) | £4.45 |
| Selling price | £22.24 |
Cost per item £14.90 · Retail price £22.24 · Wholesale (2× cost) £29.80
India: a hand-block-printed cushion cover
| Materials | ₹180.00 |
| Your time (60 min at 150/hour) | ₹150.00 |
| Overheads per item | ₹30.00 |
| Packaging | ₹25.00 |
| Total cost | ₹385.00 |
| Platform fees (18%) | ₹111.77 |
| Profit (20%) | ₹124.19 |
| Selling price | ₹620.97 |
Cost per item ₹385.00 · Retail price ₹620.97 · Wholesale (2× cost) ₹770.00
Does the price look too high?
If the result feels higher than similar items, do not cut your hourly rate first. Check whether you can make items in batches to save time, buy materials in bulk, or offer a simpler version at a lower price. Handmade buyers often pay more for quality, story and good photos, and underpricing makes it impossible to sell wholesale later. The full method is explained in how to price handmade products.
Frequently asked questions
What is the formula for pricing handmade items?
Add materials, labour (time × hourly rate), overheads and packaging to get your cost per item. Then divide by (1 − platform fees − profit), using percentages as decimals. For a $12 cost with 10% fees and 25% profit: 12 ÷ 0.65 = $18.46.
How much should I pay myself per hour?
At least your local minimum wage, and ideally what you would earn for skilled work elsewhere. Whatever you choose, use the same rate for every product so your prices stay consistent.
What is keystone pricing?
A traditional retail rule: the wholesale price is double your cost and the retail price is double the wholesale price. It leaves room for shops that buy from you to make their own margin.
Should my Etsy price be the same as my own website?
Many sellers keep one price everywhere so buyers are treated fairly. Your own site has lower fees, so the extra margin can pay for advertising.
How do I include overheads?
Add up a typical month of overheads (equipment, subscriptions, tools, photography props) and divide by the number of items you make that month.