Tool

Etsy Pricing Calculator

Set prices that cover your costs, respect your time, and leave room for sustainable profit.

An Etsy pricing calculator helps you set prices that cover materials, labour, platform fees, and profit margin so every sale is sustainable. The formula is Sale Price = (Materials + Labour) / (1 - Fee Rate - Target Margin).

What goes into an Etsy price

Most handmade sellers set prices based on what competitors charge or what "feels right." But sustainable pricing requires accounting for four things:

1. Material costs - every component that goes into the finished product, including waste and packaging.
2. Labour - your time at a fair hourly rate. This is the most commonly undervalued element.
3. Platform fees - Etsy listing fees, transaction fees, payment processing, and offsite ads if applicable.
4. Profit margin - the buffer that makes your business sustainable and allows for growth.

The formula

This ensures your fees and margin are calculated as a percentage of the final price, not added on top. It is the difference between pricing that works and pricing that leaks profit.

How MakerTools does it

Rather than giving you a one-off calculator, MakerTools builds pricing into your product workflow. Add your materials, set your target hourly rate, and the app calculates your recommended price automatically. When you update a material cost or adjust a fee, every affected product updates with it.

• Real-time fee breakdown. See exactly where every pound goes.
• Material cost roll-up. The system tracks every material assigned to a product and sums costs automatically.
• Wage-aware pricing. Set a target hourly rate and see whether your current prices meet it.
• What-if scenarios. Test price changes before committing.

Example

Imagine a ceramic mug:

• Materials (clay, glaze, firing): £4.50
• Labour (45 minutes at £15/h): £11.25
• Etsy fees (estimate 15%): ~£4.50 on a £30 sale
• Target margin: 20%

Without the calculator, you might price this mug at £20 to stay competitive. At £20, after fees and materials, you are earning about £12.50 - which works out to roughly £16.67 per hour. With the right pricing formula, you would arrive at a price that respects your time and covers your true costs.