Price Calculator For Handmade Craft Business

Add up your materials cost and labour cost (hours × your hourly rate), add a percentage for overhead, then add your desired profit margin. This calculator does that automatically and adjusts for the fees taken by whichever channel you sell through.

Markup is profit as a percentage of your cost; margin is profit as a percentage of your selling price. A 40% margin needs a higher price than a 40% markup on the same cost, because margin is calculated against the larger number (the price), not the smaller one (the cost).

Yes. Many handmade sellers only charge for materials and forget their time, which often means they are effectively working for very little once fees and overhead are subtracted. Setting a target hourly rate is the single biggest fix for underpriced handmade goods.

As of 2026, Etsy UK charges a £0.16 listing fee per item, a 6.5% transaction fee, and a 4% + £0.20 payment processing fee, so roughly 10.5% plus a small fixed amount in total. Etsy may also charge VAT on its own fees and an offsite-ads fee in some cases — check Etsy's current fee policy for your shop.

Most handmade sellers use 15–25% of their combined materials-and-labour cost to cover packaging, tool wear, workspace costs, and general running costs. 20% is a reasonable starting point; adjust up if you have significant equipment or studio costs.

A common range for direct-to-consumer handmade sales (Etsy, craft fairs, your own site) is a 33–50% margin (roughly a 50–100% markup on cost). Wholesale margins are usually lower per item because you are selling in bulk to a retailer who will mark the price up again.

Only if your business's total taxable turnover is over £90,000 in a rolling 12-month period, in which case you must register for VAT. Most small and hobby-level handmade sellers are well under this threshold and do not charge VAT.

If your gross income from selling crafts is more than £1,000 in a tax year, you generally need to tell HMRC and may need to register as a sole trader and complete a Self Assessment tax return. Below £1,000 gross income, the trading allowance usually means you do not need to report it.

It's a tax-free allowance that lets you earn up to £1,000 gross income from trading (such as craft sales) in a tax year without paying tax on it or, in many cases, telling HMRC. If you claim it, you cannot also deduct your actual business expenses for that income — it replaces them.

Wholesale buyers (shops, retailers) expect to buy at a lower price so they can mark the item up and still make their own profit when they resell it. A common rule of thumb is wholesale price ≈ 2× your total cost, so the retailer can roughly double it again to reach a normal retail price.

Because Etsy's fees are taken out of your listed price, not added on top. If you want to actually keep a set amount after fees, you need to list at a higher price so that, after Etsy deducts its percentage and fixed fees, that amount is what's left. This calculator does that adjustment for you automatically.

Check whether competitors are actually covering their labour and overhead, or simply underpricing — very common in handmade markets. If your costs are accurate, a high comparative price may mean you need to reduce making time, source cheaper materials, or emphasise the value/quality that justifies the price, rather than cutting your own pay.

This calculator prices the item itself. Most sellers charge shipping separately at checkout, but if you plan to offer "free shipping", build the average postage cost into your overhead or materials figure so it is not absorbed as a hidden loss.

Review your pricing whenever materials costs change significantly, at least once or twice a year, and whenever your making process, packaging, or selling channel changes. Fee schedules for Etsy and payment processors also change periodically, so re-check them occasionally.

No. This calculator gives a pricing estimate only, based on the figures you enter and general UK marketplace/tax information that can change. It is not accounting, tax, or legal advice — for your specific situation, check GOV.UK or speak to an accountant.