Handmade pricing calculator

What to include

• Materials: everything that goes into this one item, including the thread, stuffing and labels you don't think about, and packaging.
• Hours: all the time the item takes, including weaving in ends, blocking, photos, writing the listing and packing it.
• Hourly rate: what your time is worth to you. If you're unsure, your local minimum wage is a floor to start from.
• Overhead: costs you can't pin on one item, such as needles, hooks, a cutting mat, electricity and monthly shop fees, spread as a percentage.
• Profit: money for the business on top of your pay, for new tools, slow months or growth.

How the price is worked out

The calculator adds up your costs, adds your profit, then works out a price high enough that the fees taken from it still leave you that amount.

overhead = (materials + hours × hourly rate) × overhead %
costs = materials + hours × hourly rate + overhead
you keep = costs + costs × profit %
price = (you keep + fixed fees) ÷ (1 − percentage fees)

Example: $20 of materials and 5 hours at $15 an hour come to $95. Overhead of 10% adds $9.50, and a 20% profit on the $104.50 of costs adds $20.90, so you want to keep $125.40. With fees of 9.5% + $0.45, the price is ($125.40 + $0.45) ÷ 0.905 = $139.06. The fees on that are $13.66, which leaves you $125.40.

Simply adding 9.5% and $0.45 to $125.40 would give $137.76, and you'd keep only $124.23, because the percentage is taken from the whole price, including the part meant to cover the fees.

Etsy fees for a US shop

As of 30 September 2026, Etsy charges a US shop these fees on each sale:

• a 6.5% transaction fee on the item price, plus the shipping and gift wrapping you charge
• payment processing of 3% + $0.25 on the whole order, including shipping and any tax
• a $0.20 listing fee for each item you list; a listing with several in stock is renewed for another $0.20 each time one sells

That's 9.5% + $0.45 on the item price, the calculator's defaults. A sale that comes through Etsy's Offsite Ads costs another 15% of the order (12% if your shop sold $10,000 or more in the past year), up to $100. Payment processing depends on where your bank account is, for example 4% + £0.20 in the UK and 4% + €0.30 in Germany, and some countries also have a regulatory operating fee. Check the current rates for your country in Etsy's Fees & Payments Policy and Payments Policy.

Tips

• Time yourself making one item from start to finish. It's easy to forget the finishing work.
• On Etsy, the percentage fees also apply to the shipping you charge, so set shipping prices to cover them.
• Round up to a tidy price, then enter it in "Check a price" to see what you'd earn.
• The price is before any sales tax or VAT. If you have to charge VAT, your listed price needs to include it.
• Selling wholesale to a shop? Many shops double what they pay (called keystone pricing), so make sure a wholesale price still covers your costs.