🧵 Craft Pricing Calculator (Handmade Pricing)

This calculator reuses the same standard formula as the margin calculator: Sale price = Total cost ÷ (1 − Margin rate). First, total cost is built up: Labor cost = Hours × Hourly rate, Total cost = Materials cost + Labor cost + Overhead cost. For example, with $15 materials, 2 hours at $10/hour, and $2 overhead, labor cost is $20 and total cost is 15 + 20 + 2 = $37. Applying a 30% margin rate: sale price = 37 ÷ (1 − 0.30) = 37 ÷ 0.7 ≈ $52.86, and profit ≈ $15.86.


Time-based labor costing (hours × hourly rate) is the standard method commonly recommended in handmade/craft small-business pricing guides.

As in the margin calculator, margin rate divides profit by the sale price, while markup rate divides profit by the cost. For the same profit amount, these are always different, with markup rate always higher. This calculator's primary input, "desired margin rate," is based on sale price — so it produces a different result than simply "adding 30% to cost." The markup rate shown is a secondary reference figure; setting your target using margin rate keeps your financial planning more consistent, especially for craft materials with volatile costs (resin, yarn, beads, etc.) — re-check your sale price with this calculator whenever material costs change.