How should I price a handmade product?

Include materials, paid labor, packaging, overhead, shipping and selling fees, then add enough margin for sustainable profit.

Does this calculator include Etsy fees?

Yes. The Etsy US preset uses editable common defaults for listing, transaction and payment processing fees, with optional Offsite Ads rates.

What is the difference between break-even price and recommended price?

The break-even price covers entered costs and fees with no profit. The recommended price also includes your selected target profit margin.

Handmade Product Pricing Calculator

Price your craft for real profit—not just enough to replace the materials. Include your time, overhead, shipping and marketplace fees.

Your product and costs

Current item price ($)

Materials per item ($)

Labor time (minutes)

Your target hourly rate ($)

Packaging cost ($)

Overhead per item ($) Tools, rent, marketing

Shipping you pay ($)

Shipping charged to buyer ($)

Marketplace fees and goal

Selling platform

Base fee (%)

Fixed fees ($)

Etsy Offsite Ads fee

Target profit margin (%)

The Etsy US default combines the common 6.5% transaction fee, 3% + $0.25 payment processing fee, and $0.20 listing fee. Edit these values for your country and account.

Enter your costs to calculate a profitable selling price.

How to price a handmade product

Enter the current price and every cost required to make and deliver one item.
Pay yourself for production time by entering your minutes and target hourly rate.
Select Etsy US defaults, a fee-free direct sale, or your own marketplace fees.
Choose a target profit margin. The recommended item price updates instantly.

The pricing formula

This calculator treats labor as a real product cost. It first adds materials, labor, packaging, overhead and shipping. It then works backward from marketplace fees and your target margin to find the required customer revenue. Shipping charged to the buyer is separated from the recommended item price.

total cost = materials + labor + packaging + overhead + shipping
required revenue = (total cost + fixed fees) ÷ (1 − percentage fees − target margin)
recommended item price = required revenue − shipping charged

Example handmade price

A product with $8 materials, 45 minutes of labor at $20/hour, $1.50 packaging, $2 overhead and $5 shipping costs $31.50 before selling fees. The calculator adds applicable fees and margin instead of guessing with a simple materials markup.

About the Etsy fee defaults

The Etsy US preset uses a $0.20 listing fee, a 6.5% transaction fee, and the commonly listed US payment processing rate of 3% + $0.25. Etsy states that fees can vary by location, currency and service. Offsite Ads may add 12% or 15% to an attributed order, so this calculator lets you test either case. Always compare the editable defaults with your latest payment statement and Etsy's official fee information.

Frequently asked questions

How should I price a handmade item?

Count materials, labor at a fair hourly rate, packaging, allocated overhead, shipping and all selling fees. Your price must cover those costs before it produces profit.

What is a good profit margin?

There is no universal margin. Test several targets and compare the result with customer demand, competitors and the value of your work. This calculator starts at 25%, but you can change it.

Why is labor included as a cost?

If your price only replaces supplies, the business is not paying you to make the product. Labor cost reserves compensation for production time before profit is calculated.

Does this work outside the US?

Yes, but the currency labels and Etsy preset are US-based. Select custom fees and enter the percentage and fixed charges shown for your country.

Disclaimer: This calculator provides estimates for planning only. Fees, taxes and seller circumstances vary. It is not affiliated with Etsy and does not provide financial, tax or accounting advice. Verify current fees and your own costs before setting prices.