Handmade Craft Pricing Calculator
Calculate profitable retail and wholesale prices for handmade goods. Ensures artisans cover material, labor, and overhead costs.
Production Costs
$
$
Business Factors
Break-Even Cost
$0.00
Cost to produce only. Zero profit.
Wholesale Price
$0.00
For selling to shops (bulk).
Recommended Retail
$0.00
Direct to consumer price.
About
One of the most common reasons handmade businesses fail is underpricing. Artisans often account for materials but neglect to pay themselves a fair hourly wage or factor in overheads (electricity, tools, marketing). This calculator uses the standard "Makers Formula" to generate three pricing tiers: Break-Even, Wholesale, and Retail. It is designed to empower creators to move from a "hobbyist" mindset to a sustainable business model.
pricing strategy
handmade business
craft calculator
profit margin
small business
Formulas
The calculator uses a bottom-up approach to ensure all expenses are covered before profit is added.
BaseCost = Materials + (Hours × Wage)
Wholesale = BaseCost × Markup
Retail = Wholesale × 2
Reference Data
| Cost Component | Description | Typical Value (Example) |
|---|---|---|
| Material Cost | Raw goods consumed per unit | $15.00 (Fabric, Thread) |
| Labor Cost | Time spent × Living Wage | 2 hrs × $20/hr |
| Overhead | Indirect costs (rent, etsy fees) | 10% - 15% |
| Profit Margin | Reinvestment capital | 20% (Wholesale), 50% (Retail) |
Frequently Asked Questions
Retail price must cover the retailer's overhead if you sell to shops (Keystone Pricing). Even if you sell direct-to-consumer, you should charge retail price so you don't undercut your potential wholesale partners.
Everything that isn't the object itself: packaging tape, printer ink, Etsy listing fees, your website hosting, and the electricity used to run your sewing machine.