Craft Pricing Calculator

Handmade pricing should cover materials, your time, and profit — not just yarn cost. Many makers undercharge because they skip labor or compare only to mass-produced retail prices. A sustainable price reflects what the item actually costs you to produce plus the margin you need to stay in business after fees and discounts.

Total cost = material cost + (labor hours × hourly rate). Material cost includes yarn, stuffing, notions, packaging, and shipping supplies for that item — not tools you reuse across dozens of projects. Labor hours should cover crocheting, knitting, weaving in ends, blocking, and quality checks. Photography and listing time can go into your hourly rate or a separate overhead line.

Suggested price = cost ÷ (1 − target margin ÷ 100). Margin is profit as a share of selling price, not markup on cost. A 40% margin means 40¢ of every dollar you charge is profit after all direct costs. If you multiply cost by 1.40 instead, you only get about 28% margin on price — this calculator uses the correct margin-on-price formula.

Worked example with defaults: $18 in materials plus 3 hours at $20/hr gives $78 in total cost. At a 40% target margin, suggested price = $78 ÷ 0.60 = $130, leaving $52 in profit before marketplace fees. After a typical 6.5% Etsy transaction fee on $130, net drops — either add fees to your cost line or bump margin so the listed price still clears your goal.

Set your hourly rate to reflect fair wages plus overhead: tools, software, craft fair tables, and admin time. Many US crafters charge $15–35/hr depending on skill and market. Compare similar listings for context, but do not race to the bottom — unique work, custom sizing, and fast turnaround support premium pricing when you show the value clearly in photos and descriptions.

Wholesale and craft-fair math uses the same cost base. Retailers often expect keystone (double wholesale) or 50% off your shelf price. If you plan to wholesale, run this calculator at a higher margin on your direct-to-consumer price so both channels stay profitable. Bundle discounts and free shipping eat margin too — model those scenarios before posting a sale.

Limits: this is a cost-plus estimate, not a demand forecast. Trending niches may support prices above the suggested number; saturated categories may not. Track actual hours per item — if amigurumi takes 4 hours instead of 2.5, your real margin is lower than the menu suggests. Pair this tool with our Etsy fee calculator when listing online.