Stop Guessing. Start Pricing Profitably.
MakerMargins is a free calculator that turns material costs, labor hours, and overhead into retail and wholesale prices you can trust.
Pick Your Craft
Crochet
Price your crochet projects — from amigurumi to blankets.
Woodworking
Calculate lumber, hardware, and shop-time costs accurately.
Jewelry
Track beads, wire, and findings to find your true cost.
Baking
Know the real cost of every cake, cookie, and loaf.
Sewing
Price garments and quilts with fabric and notions tracking.
The Maker’s Math
Price = (Materials + Labor + Overhead) × Markup
Materials
Every supply that goes into the finished product — yarn, wood, beads, flour, fabric.
Labor
Your time has value. Multiply hours worked by a fair hourly wage.
Overhead
Utilities, tools, packaging, Etsy fees — costs that aren’t tied to a single product.
Markup
The margin that turns cost into profit. A 50% margin means you keep half.
What Is Your Time Worth?
| Tier | Rate | Who |
|---|---|---|
| Hobbyist | $15–$20/hr | Learning the craft and building speed. |
| Artisan | $25–$40/hr | Consistent quality and efficient production. |
| Specialist | $50+/hr | High demand, rare skills, or custom design work. |
The Minimum Wage + 25% Rule
At a minimum, pay yourself your local minimum wage plus 25%. The extra quarter covers self-employment taxes (Social Security + Medicare) that you owe as a sole proprietor. If minimum wage is $15/hr, start at $18.75/hr — then work up from there.
Tax Tip: Materials Are Deductions
Every material you track in MakerMargins — yarn, lumber, beads, flour, fabric — is a business expense that reduces your taxable income. Keep your receipts, log your costs here, and export the PDF as a record for tax season.
This is educational content for informational purposes only and does not constitute professional tax, legal, or financial advice. Consult a qualified tax professional for guidance specific to your situation.
Frequently Asked Questions
How do I calculate labor cost for handmade products?
Multiply the total hours you spend making the product by your desired hourly wage. Include every phase — design, cutting, assembly, finishing, and packaging. MakerMargins does this math for you automatically.
What profit margin should I use for handmade goods?
Most makers use 30–50% for wholesale and 50–70% for retail. Start with 50% and adjust based on your market, competition, and perceived value. Our calculator shows both retail and wholesale prices instantly.
What counts as overhead for a craft business?
Overhead includes recurring costs not tied to a single product: workspace rent or utilities, equipment wear, packaging supplies, marketplace fees (Etsy, Shopify), insurance, and software subscriptions. A common starting point is 10–15% of your material-plus-labor total.