Handmade
Handmade Profit Per Hour Calculator
Find out what you actually earn per hour from a handmade sale, after materials, other costs and fees — not just what the price tag says.
Formula
Profit per hour = (selling price − material cost − other costs − platform and payment fees) ÷ hours to make one item. Other costs include overhead such as packaging; fees are entered as a per-item amount, which you can take from a fee calculator for your platform.
How it works
Enter the selling price and every per-item cost: material, other costs and the fees on that sale. Enter the hours the item took. The calculator first finds what the item actually leaves you after costs and fees, then divides by hours, giving the hourly rate your price is really paying you.
Worked example
Selling price $85.00 − material $18.00 − other costs $6.00 − fees $8.50 = $52.50 earnings per item. Profit per hour = $52.50 ÷ 2.5 hours = $21.00 per hour. Interpretation: this item pays you $21.00 for each hour of making time after costs and fees. Compare that figure with your target hourly rate: if it is lower, either the price must rise, costs must fall, or the item must take fewer hours.
FAQs
What is the difference between profit per hour and my hourly labor rate?
Your hourly labor rate is what you charge for time in a price build. Profit per hour is what a finished sale actually leaves you per hour after all costs and fees — it tests whether your price really delivers that rate.
What goes in other costs?
Overhead per item such as packaging, a share of tool and workspace costs, and any per-item charges that are not material or platform fees.
Where do I get the fees per item?
From your platform's fee breakdown for a sale at this price — for example, run the Etsy fee calculator for an Etsy sale and enter its total fees here.
What if profit per hour is negative?
The item loses money after costs and fees: every hour spent on it reduces your earnings. Raise the price, cut costs, reduce hours, or stop making that item.
Does this include time spent listing and packing?
Only if you include those hours in the hours figure. For a full picture, add listing, photography and packing time to making time.
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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