Etsy Pricing Calculator
Calculate the right selling price for your Etsy products. Enter costs and target profit margin to set prices that ensure profitability.
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How to Use This Calculator
Set Etsy prices that ensure profitability while staying competitive:
- Enter your costs: materials, labor (time × hourly rate), and packaging.
- Set your target profit margin percentage.
- The calculator factors in all Etsy fees automatically.
- Click 'Calculate' to see the selling price needed to hit your target margin.
- Adjust inputs to find the sweet spot between price and profit.
Why This Matters
Pricing handmade items is challenging - too high and you lose sales, too low and you lose money. Many sellers price based on competitors or gut feeling, only to discover they're barely breaking even after costs and fees. Working backward from your target profit margin ensures every sale contributes to a sustainable business. This approach also helps you decide which products are worth making at market prices.
- Price confidently knowing you'll hit profit targets
- Account for all Etsy fees in your pricing strategy
- Compare prices needed at different margin targets
- Identify if products can be priced competitively
- Build a sustainable, profitable Etsy business
Worked Examples
Handmade Earrings
Materials: $4, Labor (20 min @ $20/hr): $6.67, Packaging: $1.50. Target: 30% margin.
Custom Portrait
Materials: $5, Labor (4 hrs @ $30/hr): $120, Packaging: $8. Target: 25% margin.
Finding Minimum Viable Price
Same portrait, but willing to accept 10% margin to be competitive.
Common Mistakes to Avoid
- Setting prices based only on material costs - labor is usually your biggest expense.
- Forgetting that Etsy takes ~15% of every sale (fees on item + shipping).
- Pricing to match competitors who may be underpricing their own work.
- Not valuing your own time - pay yourself a fair hourly rate.
- Lowering prices when sales are slow instead of improving marketing.