Craft Pricing Calculator
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Price handmade items from yarn cost, labor time, and your target profit margin.
Craft costs & margin
Suggested price
$130.00
Cost: $78.00 · Profit: $52.00
- Total cost
- $78.00
- Achieved margin
- 40.0%
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Pricing handmade crafts
Handmade pricing should cover materials, your time, and profit — not just yarn cost. Total cost = material cost + (labor hours × hourly rate). Suggested price = cost ÷ (1 − target margin ÷ 100). A $18 yarn bill plus 3 hours at $20/hr = $78 cost. At 40% margin, price ≈ $130 — leaving room for Etsy fees and discounts.
Set your hourly rate to reflect fair wages plus overhead: tools, packaging, listing photos, and admin time. Many makers underprice because they skip labor or use retail yarn prices without shipping. Compare similar listings, but do not race to the bottom — unique work commands premium pricing when marketed well.
Example: amigurumi with $8 yarn, 2.5 hours at $22/hr = $63 cost. Target 35% margin → price ≈ $96.92. After a 6.5% Etsy fee on the sale, net is lower — add fees to costs or bump margin. Use our Etsy fee calculator alongside this tool.
Common questions
What hourly rate should makers use?
Many US crafters charge $15–35/hr depending on skill and market. Include non-billable time (photos, shipping, messages) in your rate or add overhead to material cost.
Margin vs markup for crafts?
Margin is profit as a share of selling price. A 40% margin means 40¢ of every dollar is profit. Markup is profit as a share of cost — they are not interchangeable. This tool uses margin on price.