Handmade
Handmade Pricing Calculator
Build a handmade price that covers your materials, your time and your overhead — and leaves the platform fee outside those costs, not taken from them.
Formula
Break-even price = (material cost + hourly labor rate × hours + overhead) ÷ (1 − platform fee ÷ 100). Dividing by (1 − fee) grosses the fee up, so the fee is a share of the break-even price and your costs are still covered in full after it is taken. This is a break-even price only — it covers your costs and the platform fee but adds no profit, so add your profit margin on top when you set your actual selling price.
How it works
Enter what one item really costs you: materials, the hours it takes at your hourly rate, and overhead such as packaging and tools. Enter the platform fee as a percentage of the selling price. The calculator first adds up your costs, then grosses them up for the fee, so a 10% fee does not simply mean adding 10% to your costs — it means the price is set so that 10% of the price itself covers the fee.
Worked example
Material $18.00, labor $25.00 per hour × 2 hours = $50.00, overhead $6.00: total cost $18.00 + $50.00 + $6.00 = $74.00. With a 10% platform fee, selling price = $74.00 ÷ (1 − 0.10) = $74.00 ÷ 0.90 = $82.22. The fee is 10% of $82.22 = $8.22, and $82.22 − $8.22 = $74.00, so your costs are covered exactly. Interpretation: $82.22 is your break-even price before any profit — add a profit amount on top of the $74.00 cost before grossing up if you want earnings beyond covering costs.
FAQs
What is the difference between adding a fee and grossing it up?
Adding 10% to $74.00 gives $81.40, but 10% of $81.40 is $8.14, leaving you $73.26 — short of your costs. Grossing up divides by 0.90 to give $82.22, where 10% of the price is exactly the $8.22 fee and $74.00 remains.
Should I include my own time in the price?
Yes. Labor at a realistic hourly rate is a real cost, even if you are the maker. Leaving it out makes a busy shop look profitable while you are effectively working for free.
What counts as overhead for a handmade item?
Packaging, shipping materials, tool wear, listing and photography time, and a share of workspace costs. Put a per-item figure here rather than leaving these costs out entirely.
Does this price include profit?
No. The result covers material, labor, overhead and the platform fee only. Add your target profit to the cost total before the fee calculation if you want the price to leave you with earnings after costs.
What if my platform charges a fixed fee as well?
Add that fixed amount to your cost total first, then gross up for the percentage fee. That keeps the fixed charge covered in the same way as your other costs.
Stand: October 2026. Pure arithmetic — no platform rate is used; enter your own figures.
Sources: No platform fee is asserted on this page — material cost, hourly rate, hours and other figures are your own inputs, so replace the defaults with your real numbers.
Disclaimer: Results are estimates and general information only, not financial advice. Prices and fees change, so confirm the current rate on the platform before you price a listing.
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