Setting a fair price for your handmade products is important. Charge too little and you won’t make profit; charge too much and customers may not buy. A clear pricing method helps you balance material costs, your time, and desired profit. In this guide we explain each step, from adding up costs to applying a profit margin. You can also try our free MakerMyths pricing calculator on this site to speed up the process and feel confident about your numbers.
Calculate Material Costs
Start by listing every material and supply used in one item. For example, note the filament or resin weight in grams for a 3D print, the wood or acrylic dimensions for a woodworking or laser-cut piece, and any finishes or paints. Don’t forget small items like screws, wires, or glue. Packaging counts too: include boxes, bubble wrap, labels, or ribbon.
- Raw materials (filament, resin, wood, metal, acrylic sheets, fabric, etc.)
- Supplies (glue, paint, sanding materials, finishes)
- Packaging (box, tape, labels, gift wrap)
Next, figure out how much each item costs. Measure or weigh your materials. For instance, if a 1 kg spool of PLA costs €20 and your print uses 100 g, the filament cost is (100 g / 1000 g) × €20 = €2. If a wood board costs €10 and you use half of it, count €5. Even if you already own the material, include a fair value for it. Add up all these material costs – this is the baseline cost of your product.
Account for Your Time and Labor
Your time is valuable and should be included. Decide on an hourly rate for your labor. A hobbyist might use a lower rate (for example €10–€15 per hour), while a seasoned professional would use a higher rate (like €30–€40 or more). Whatever rate you choose, multiply it by the time spent on the item. Remember to include every task: designing, setting up machines, operating equipment, sanding, painting, finishing, assembly, and even packing the item.
- Designing or planning the project
- Machine time (3D printing, laser cutting, CNC routing)
- Finishing tasks (sanding, painting, sealing)
- Assembly and testing
- Packing and labeling
For example, if a project takes 2 hours in total and your rate is €15/hour, that adds €30 to the cost. This ensures you are paid for the work you do, not just the physical materials.
Include Overhead and Tool Costs
Overhead costs are the general business expenses behind each item. These include electricity, machine wear, and workspace costs. Each 3D print or laser cut wears down parts (nozzles, belts, laser tubes), so add a small hourly machine cost to account for this. Electricity for running machines or lights is another small cost. Also consider any fees and miscellaneous items: transaction fees, shipping labels, or spare parts.
- Machine wear and electricity (printer power, CNC tool wear)
- Tool and maintenance costs (replacement parts, sandpaper)
- Workspace expenses (partial rent, utilities, internet)
- Sales fees (marketplace commissions, shop fees)
You can estimate overhead by calculating yearly expenses (like electricity bills or service subscriptions) and dividing by the number of items you sell. Or simply add a fixed amount per item. The goal is to ensure all indirect costs are covered so you can keep operating your craft or business sustainably.
Set a Profit Margin
Once you’ve added materials, labor, and overhead, decide how much profit to make. Profit margin is the extra percentage you add on top of your total cost. This is what you earn for your effort and creativity. A typical margin might be 20–40% for simple, quick items, 50–80% for detailed or custom work, or even 100%+ for unique artworks.
- 20–40% margin for simple, fast-to-make items
- 50–80% margin for custom or detailed items
- 100%+ margin for one-of-a-kind art pieces
For example, if all your costs add up to €10 and you use a 50% margin, the selling price becomes €15 (because 50% of €15 is €5 profit). Choose a margin that makes you comfortable: it should reward your time and skill but still be acceptable to customers. Generally, pricing a little higher than your break-even point is better than too low, since raising prices later is easier than lowering them.
Avoid Pricing Pitfalls
Be careful of common mistakes. One trap is undercharging: pricing at just material cost or skipping labor. This means you work for free in effect. Don’t let competitive low prices set by others drive you under. If someone sells very cheaply, they might not cover their own costs. Instead, focus on your own costs and value. On the flip side, don’t guess a price without calculation. An excessively high price can scare off buyers. Always base your price on your cost breakdown plus a fair profit.
- Not counting your full time (charging only per hour of machine use)
- Overlooking small supplies like glue or packaging
- Ignoring maintenance and tool costs
- Letting competitors’ low prices dictate your price
- Pricing based on guesswork or formulas that skip profit
For instance, some new makers double or triple their material costs as a quick rule, but this often misses labor and other costs. A better approach is to calculate each part so you know your price is sustainable. Many customers understand higher handmade prices when you explain the work involved. Be transparent and confident: a well-priced item reflects quality and effort.
Use the Free MakerMyths Pricing Calculator
To simplify the math, try our free pricing calculator. It walks you through each step and does the calculations for you. You just enter your material cost, the time spent, and any additional costs. You pick an hourly rate for your labor and a profit margin. The tool then shows your break-even cost, a suggested price, and the profit per item. It even uses default machine costs if you don’t know them. You can tweak numbers and instantly see how the price changes.
- Enter total material costs (filament, wood, etc.)
- Add machine time and an hourly machine cost
- Add your labor time and choose your rate
- Include any extra fees or packaging costs
- Select a profit margin percentage
- View the total break-even cost and final price
This calculator is made for crafters and makers (3D printing, laser engraving, woodworking, resin art, and more). It’s free on our site and can give you a quick reality check on pricing. Use it to avoid mistakes and be sure you’re not undercharging. Trying different values helps you find a balance between competitiveness and profit.
Key Takeaways
- Include every cost: materials, supplies, packaging, and small parts.
- Charge for all your time: designing, making, finishing, and packing.
- Add overhead: machine wear, electricity, tool maintenance, fees.
- Apply a reasonable profit margin (often 20–80% or more depending on complexity).
- Avoid guessing prices. Base price on your full cost and value.
- Use tools like our free pricing calculator to check your math.
Pricing by formula takes practice, but focusing on clear costs will guide you. When you cover costs and earn profit, you can keep creating without losing money. With these steps and the MakerMyths pricing calculator, you’ll be ready to set fair prices for your handmade creations.