Handmade Profit Margin Calculator

Enter your costs and desired margin to find a fair selling price — or enter a selling price to see what margin you're actually earning.

Materials cost ($)

Labor cost ($)

Overhead per item ($) (packaging, fees)

Marketplace fee (%) (Etsy, etc.)

Target profit margin (%)

Common marketplace fees reference

Platform	Transaction fee	Listing fee
Etsy	6.5% + payment processing	$0.20/listing
Shopify	0–2% (plan-dependent)	Monthly subscription
Amazon Handmade	15%	No listing fee
eBay	~13.25% (category varies)	Up to 250 free/mo
Local market / craft show	0% transaction	Table/booth fee (varies)

Pricing handmade items

A common formula: Price = (Materials + Labor + Overhead) ÷ (1 − Margin%). This ensures margin is calculated on revenue, not cost. A 30% margin means 30 cents of every dollar sold is profit after all costs.

Pay yourself a real hourly rate — at least minimum wage, ideally market rate for your skill
Marketplace fees come off your revenue, so build them into your price
A 30–50% margin is a common starting target for handmade businesses
If your market won't bear your true cost + margin, consider premium positioning or reducing costs

These calculations are for guidance only. Actual profitability depends on volume, overhead allocation, and tax obligations.