Handmade Product Pricing Calculator

Free pricing calculator for makers: full cost model, marketplace and payment fees, break-even, target margin, markup, effective hourly rate and a discount sensitivity table.

What one finished item actually costs you

Currency the maths is the same in any currency; this only changes the unit shown

Scenario

Costs per item

Materials ($) everything that goes into one item

Labor time (hours) making, finishing, packing

Your hourly rate ($) what you are paying yourself

Packaging ($) box, tissue, card, label

Shipping you absorb ($) 0 if the buyer pays it

Advertising per sale ($) ad spend / orders it produced

Overhead per sale ($) monthly fixed costs / items you expect to sell

Fees and allowances

Marketplace fee (%) Etsy transaction + listing ≈ 6.5 — checked 2026-07-28, verify yours

Payment processing (%) card or wallet percentage

Fixed fee per order ($)

Refund allowance (%) of price, set aside for returns

Tax reserve (% of profit) 0 if you handle this elsewhere

What you want out of it

Target profit margin (%) share of the selling price kept as profit

Planned discount (%) sale or coupon you expect to run

Or: profit you want per item ($) optional, prices for a cash target instead

Enter your costs and fees above. The price, the profit and the break-even appear here as you type — and stay on this device.

Runs entirely in your browser. Your numbers are saved only on this device (localStorage) — never uploaded.

Compare three scenarios

Scenario A, B and C keep separate sets of numbers on this device. Use them for a cheaper material, a different marketplace, or the same item at a higher hourly rate.

Save a product

Product name

Margin and markup are not the same number

Margin is profit as a share of the price. Markup is profit as a share of the cost. On the same item, a 30% margin is roughly a 51% markup — which is why "I add 50%" and "I make 50%" describe two very different businesses.

If cost is $40 and you…	Price	Profit	Margin	Markup
add 50% to cost (markup)	$60.00	$20.00	33%	50%
keep 50% of price (margin)	$80.00	$40.00	50%	100%

Fees are excluded from this illustration so the two definitions stay visible. The calculator above includes them.

How this is calculated

labor = hours x hourly rate
cost per sale = materials + labor + packaging + shipping you absorb + advertising + overhead
variable share of price v = marketplace% + payment% + refund allowance%
price = (cost + fixed fee) x (1 - tax reserve) / ((1 - v) x (1 - tax reserve) - target margin)
break-even price = (cost + fixed fee) / (1 - v)
markup on cost = profit / cost margin of price = profit / price

What it assumes

Margin here is measured against the selling price, which is the retail convention. Markup on cost is shown next to it because mixing the two up is the most common pricing mistake there is.
Percentage fees apply to the whole sale price, which is how Etsy and card processors charge.
The refund allowance is a percentage of price set aside for returns and disputes. Set it to 0 if you would rather not model it.
Overhead per sale is your monthly fixed costs divided by the number of items you actually expect to sell — not the number you hope to sell.
The tax reserve is a share of profit put aside, not a tax calculation. It is not tax advice, and rates and rules vary by country.
Your hourly rate is a decision, not an output. No calculator can tell you what your time is worth.

Worked example

In: $10 materials, 2 h at $15, $1.50 packaging, $0.80 ads, $1.20 overhead, 6.5% marketplace, 3% + $0.30 payment, 1% refunds, 30% target margin
Out: cost $43.50, break-even $48.94, price $73.61, fees $8.03, profit $22.08, markup 50.8%, effective hourly $26.04

If a result here disagrees with your own arithmetic, that is worth reporting — tell me and include your numbers.

Pricing more than one product?The Excel version I sell keeps every product on its own row, so changing your hourly rate reprices the whole shop at once. Get the Excel version on Etsy →