Handmade price
How is a handmade price calculated?
Cost is materials plus labor hours times the hourly rate plus shipping. The platform fee is the percent you type of the selling price. Profit is the selling price minus that fee and the cost.
Formula
Materials are the sum of the lines. Labor is hours × hourly rate. Cost is materials + labor + shipping.
Fee = selling price × (rate / 100). Profit = selling price − fee − cost. Margin = profit / selling price. With no selling price, only cost is shown.
Representative example: linen shirt
- Cloth 12.00 and buttons 3.00. Materials 15.00.
- 1.5 hours × 20.00 = 30.00 labor. Shipping 4.00. Cost 49.00.
- Selling 80.00, fee 6.5% = 5.20. Profit 25.80. Margin 32.25%.
- The rate comes from your contract. Nothing is pulled from a shop.
Common mistakes
- Treating the fee as a percent of cost. The fee is a percent of the selling price.
- Pasting someone else’s spreadsheet in place of your own numbers.
Questions
Does this connect to Etsy?
No. You type the rate. Orders and listings are not imported.
Source: Foodmarj. Published 25 October 2026. Updated 25 October 2026.