Cost Calculator — COGS, Pricing & Profit Margins for Crafters

Calculate the true cost of your handmade products, set profitable prices, and track margins. Includes ingredients, packaging, labor, and overhead. All data stays in your browser — nothing is uploaded.

Suggested Retail Price
$0.00
per unit · 0% profit margin
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Cost Per Unit
$0
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Profit Per Unit
$0
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Batch Cost
$0
Product Information
Ingredient Costs (total for batch)
Other Costs (per batch)
Pricing Strategy
Cost Breakdown Per Unit

Pricing Summary

Cost Per Unit (COGS) $0.00
Suggested Retail $0.00
Wholesale Price $0.00
Platform Price (after fees) $0.00

Profit Per Unit

Retail Profit $0.00
Wholesale Profit $0.00
Platform Profit $0.00
Batch Total Profit (retail) $0.00
Saved Calculations
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How It Works

Cost of Goods Sold (COGS) is the total cost to produce your product. It includes all direct costs: raw materials, packaging, labor, and a portion of overhead expenses. Accurate COGS calculation is essential for setting profitable prices.

The formula is: COGS = (Ingredients + Packaging + Labor + Overhead) / Units per Batch. This calculator breaks down each cost category, sums them for the full batch, then divides by the number of units to find the per-unit cost.

From the per-unit COGS, the retail price is calculated using your desired profit margin: Retail Price = COGS / (1 - Margin%). Wholesale and platform-adjusted prices are derived from these base figures.

Examples

Typical pricing calculations for handmade products:

Cold Process Soap

Ingredients: $2.50, Packaging: $1.00, Labor (0.5hr × $15): $7.50, Overhead: $1.10

COGS: $12.10 · Retail (50% margin): $24.20

Soy Candle

Ingredients: $1.80, Packaging: $0.75, Labor (0.25hr × $15): $3.75, Overhead: $0.63

COGS: $6.93 · Retail (50% margin): $13.86

Lip Balm

Ingredients: $0.45, Packaging: $0.30, Labor (0.10hr × $15): $1.50, Overhead: $0.23

COGS: $2.48 · Retail (60% margin): $6.20

Formulas Reference

Key formulas used in cost and pricing calculations:

FormulaCalculation
COGS per Unit(Ingredients + Packaging + Labor + Overhead) / Batch Size
Labor CostLabor Hours × Hourly Rate
OverheadIngredient Cost × Overhead Percentage
Retail PriceCOGS / (1 - Desired Margin%)
Wholesale PriceRetail Price × (1 - Wholesale Discount%)
Platform PriceRetail Price / (1 - Platform Fee%)
Profit Margin(Price - COGS) / Price × 100%
Batch Total Profit(Retail Price - COGS) × Batch Size
Frequently Asked Questions
What should I include in my product cost?
Include all direct costs: ingredients, packaging, labels, labor (your time!), and a portion of overhead (utilities, equipment, workspace). Many crafters underprice by forgetting to count their own labor.
What is a good profit margin for handmade products?
A 50–65% profit margin is typical for handmade goods. This covers your time, materials, and allows for profit. Wholesale typically uses 30–40% margin, while retail targets 50–70%.
How do I calculate wholesale pricing?
Wholesale is typically 50% of retail price. If your retail is $12, wholesale would be $6. This allows retailers to mark up 100% and still offer competitive prices.
What about platform fees (Etsy, Amazon)?
Etsy charges ~6.5% + $0.20 per listing. Amazon takes 15%. eBay charges ~13%. Enter your platform's fee percentage to see the true profit after fees.
Should I pay myself for labor?
Absolutely! Your time has value. Even if you're the owner, paying yourself an hourly rate ensures your business is truly profitable. A common rate for crafters is $15–25/hour.