Calculate SimplyHow to use
Start with the worked example to understand the inputs, then replace every relevant value with your own figures. Use one currency and consistent units throughout. Add or remove rows where offered; irrelevant conditional fields are disabled and excluded. Select Calculate after editing. Review negative values and any “not determined” result rather than assuming every scenario must be profitable. Download a text summary or print the page for your records.
Formula and assumptions
Price handmade items after materials, packaging, labor, seller shipping and fixed fees. Divide those costs by one minus the percentage selling fee minus the target profit margin. Margin is profit divided by price; it is different from markup on cost. Keep combined percentage fees and margin below 100%. Enter current actual platform fees rather than relying on a preset Etsy rate. The percentage is assumed to apply to the entered selling price. Taxes, refunds and currency conversion are excluded unless incorporated into your cost inputs.
price = (materials + packaging + labor + shipping + fixed fees) / (1 − percentage fees − margin)
Worked example
Example only: replace rates with your own figures.
Inputs
- Materials cost per item: 8
- Packaging cost per item: 2
- Labor hours per item: 1
- Target hourly labor rate: 15
- Seller-paid shipping per item: 4
- Fixed listing and transaction fees per item: 0.5
- Percentage fees on selling price: 10 %
- Target profit margin: 20 %
- Required selling price: 42.1429 USD
- Cost including labor: 29.5 USD
- Percentage fees: 4.21429 USD
- Profit per item: 8.42857 USD
Frequently asked questions
Are the example rates current market prices?
No. Example inputs demonstrate arithmetic, not live prices, tax rules, salary surveys or sponsor benchmarks. Enter a dated quote, bill, manufacturer specification or verified fee schedule that applies to your situation. Compare a conservative and an optimistic scenario separately.
Why is a result not determined?
Some calculations have no meaningful value when a denominator is zero, savings are non-positive, a target cannot be reached or your data do not bracket an intersection. The tool leaves that result undetermined instead of displaying infinity or inventing a recommendation. Check the method and your inputs.
Sources
Sources explain the underlying concepts, not an endorsement of this website or its results. Method review: 20 October 2026.