The formula, then the reality check
Handmade pricing usually starts with (materials + labor + overhead) × 2 = wholesale, × 2 = retail. This calculator does that, and then does what the formula doesn’t: it runs the price you’re considering through Etsy’s fees (same engine as our Etsy calculator) and subtracts your materials, overhead and your own wage.
| $6 materials, 1 hour at $20, 10% overhead | Fees | Fee rate | Profit |
|---|---|---|---|
| Retail $35 | $3.78 | 10.8% | $2.62 |
| Retail $45 | $4.73 | 10.5% | $11.67 |
| Retail $60 | $6.15 | 10.3% | $25.25 |
| Retail $114.40 (full formula) | $11.32 | 9.90% | $74.48 |
“Profit” here is what’s left after paying yourself $20 an hour. At $45 that’s $11.67, so the price covers your time with some margin. The full ×2×2 formula ($114.40) only makes sense if you also sell wholesale.
Why crafters underprice
Most handmade sellers forget one of three things: their time, their overhead (tools, studio, packaging, the failed pieces) and the platform fees. Etsy’s fees on a $45 sale are $4.73; leave them out and you overestimate your hourly pay by almost $5 on every piece.
Our stance: price for the wage you want, then work on reducing hours per piece, not on cutting the price. A cheaper price only makes you busier.
Selling to shops too? Set your wholesale price with the wholesale price calculator. In the UK, Etsy’s fees include VAT; see Etsy fees UK.
Etsy fees the formula forgets
Etsy charges a $0.20 listing fee, a 6.5% transaction fee on the item and shipping, and 3% + $0.25 payment processing in the US (Etsy Fees & Payments Policy). On a $45 piece that’s $4.73, money the ×2×2 formula never mentions. If you sell at craft fairs instead, the card reader’s fee replaces Etsy’s; see SumUp or Square for those rates.