Calculate the perfect retail and wholesale price for your handmade items.
Total cost of all supplies used.
Time spent creating the item.
What you want to pay yourself per hour.
Rent, tools, marketing (usually 10-15%).
Extra profit for business growth (100% = 2x total cost).
Pricing Summary
Total Production Cost:$0.00
Wholesale Price (1.5x Cost):$0.00
Suggested Retail Price:$0.00
Understanding Craft Pricing Strategy
Setting the right price for handmade goods is the most challenging part of running a creative business. Many makers undercharge because they forget to include their time or business overhead. This calculator uses a professional formula to ensure your hobby remains a sustainable business.
The Pricing Formula Explained
The standard industry formula for craft pricing generally follows this logic:
Base Cost: Materials + (Time × Hourly Wage).
Production Cost: Base Cost + Overhead (Electricity, platform fees, tools).
If you don't include an Hourly Wage, you aren't running a business; you are paying for a hobby. Calculate your hourly rate based on what it would cost to hire someone else to make the item, or based on your desired annual salary. A standard starting point for skilled makers is $20–$35 per hour.
Real-World Example
Suppose you make a hand-knit scarf. Your materials cost $15. It takes you 3 hours to knit, and your hourly rate is $20. Your overhead is 10%.
Labor: 3 hours × $20 = $60
Materials: $15
Overhead: ($60 + $15) × 0.10 = $7.50
Total Cost: $82.50
Retail Price (with 100% markup): $165.00
While $165 might seem high, this ensures you are paid for your time and the business makes a profit to buy more yarn and pay for marketing.
function calculateCraftPrice() {
var materials = parseFloat(document.getElementById('materialCost').value);
var hours = parseFloat(document.getElementById('laborHours').value);
var rate = parseFloat(document.getElementById('hourlyRate').value);
var overheadPct = parseFloat(document.getElementById('overheadPercentage').value);
var markupPct = parseFloat(document.getElementById('markupPercentage').value);
// Validation
if (isNaN(materials) || isNaN(hours) || isNaN(rate)) {
alert("Please enter valid numbers for Materials, Hours, and Hourly Wage.");
return;
}
if (isNaN(overheadPct)) overheadPct = 0;
if (isNaN(markupPct)) markupPct = 0;
// Logic
var laborTotal = hours * rate;
var baseCost = materials + laborTotal;
var overheadAmount = baseCost * (overheadPct / 100);
var totalProductionCost = baseCost + overheadAmount;
// Retail Price Calculation: Total Cost * (1 + markup%)
var retailPrice = totalProductionCost * (1 + (markupPct / 100));
// Wholesale standard: 1.5x to 2x production cost
var wholesalePrice = totalProductionCost * 1.5;
// Display
document.getElementById('resProductionCost').innerText = "$" + totalProductionCost.toFixed(2);
document.getElementById('resWholesale').innerText = "$" + wholesalePrice.toFixed(2);
document.getElementById('resRetail').innerText = "$" + retailPrice.toFixed(2);
var profitVal = retailPrice – totalProductionCost;
document.getElementById('breakdownText').innerText = "With this pricing, you earn $" + rate.toFixed(2) + " per hour in wages plus a total business profit of $" + profitVal.toFixed(2) + " per item sold.";
document.getElementById('craftResults').style.display = 'block';
}