Stop guessing your prices. Factor in raw materials, production labor time, living wages, studio overhead, and marketplace transaction cuts to calculate a sustainable retail and wholesale price.
Maker / Assembly Labor Time
Computed Labor Cost: $18.75 (0.75 hrs @ $25.00 /hr)
Adds $4.01 for studio rent, electricity, tool depreciation.
Drag slider to see suggested selling price adjust immediately.
Target Selling Channel Fees
$61.41
Delivers $24.56 cash profit at 40% margin
Traditional 2× Base Production Cost benchmark
Cost Breakdown per Unit
A profit calculator takes an existing selling price and tells you your margins. This pricing calculator works in reverse: you enter what it costs you to make (materials, labor hours, wage rate, overhead) plus your desired profit margin, and it calculates the exact price you should charge to achieve that margin.
Underpricing handmade products is the #1 reason craft and maker businesses fail. If you don't pay yourself an hourly wage in your formula, your business is subsidizing the customer with free labor rather than generating true commercial value.
The classic maker formula is: Base Production Cost × 2 = Wholesale Price; Wholesale Price × 2 = Retail Price. This gives you room to sell to retailers or offer 50% wholesale discounts while remaining profitable.
Overhead covers indirect business expenses not tied to a single item: studio rent, electricity, packaging tape, machinery depreciation, website hosting, and bookkeeping software. 10% to 20% of direct production cost is a standard allocation.
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Check character limits for Etsy, Amazon, and eBay, and verify keyword coverage.
Cobalt Graphics Studio
Cobalt Graphics builds ecommerce websites, custom web applications and digital tools for businesses.
