Product pricing calculator: COGS, margin & markup

Work out what one unit really costs you, including your time, then see your margin and markup at your current price and the price you need to hit a target margin after selling fees.

One unit of your product

Cost of goods
Include supply shipping
What your time is worth
Price and fees
Sets the fee fields; edit them freely

Result

Price for target margin-
Profit per unit-
Margin-
Markup on COGS-
Break-even price-
Cost breakdown
Labour per unit-
COGS per unit-
Fees at your price-
Wholesale guide (2 x COGS)-
Retail guide (4 x COGS)-

Margin = profit / price. Markup = (price - COGS) / COGS. They are not the same number.

How to use this calculator

  1. Add up the materials that go into one unit, plus packaging. Include the shipping you paid on supplies so the cost is true.
  2. Enter how many minutes one unit takes and an hourly rate for your time. Leaving labour out is the most common pricing mistake.
  3. Choose where you sell to pre-fill the fees, then type your current price.
  4. Read your profit, margin and markup, the break-even price, and the price that hits your target margin after fees.

How the math works

The formulas match the Products tab in our inventory & COGS calculator:

labour = minutes / 60 x hourly rate COGS per unit = materials + labour + packaging & other fees = price x fee % + fixed fee profit = price - COGS - fees margin = profit / price markup = (price - COGS) / COGS target price = (COGS + fixed fee) / (1 - fee % - target margin) break-even = (COGS + fixed fee) / (1 - fee %)

The target price formula accounts for the fact that percentage fees grow with the price. The wholesale and retail guides use the common maker rule of thumb (wholesale = 2 x cost, retail = 2 x wholesale); treat them as a sanity check, not a rule.

Worked example

A candle uses 3.40 of wax, wick and fragrance and 1.10 of packaging, takes 20 minutes to make, and the maker values their time at 18.00 an hour. It sells on Etsy for 22.00.

  • Labour: 20 / 60 x 18.00 = 6.00
  • COGS: 3.40 + 6.00 + 1.10 = 10.50
  • Fees: 22.00 x 9.5% + 0.45 = 2.54
  • Profit: 8.96, margin 40.7%, markup 110%
  • Price for a 40% margin: (10.50 + 0.45) / (1 - 0.095 - 0.40) = 21.69

At 22.00 the candle clears 40%. Below 12.10 it loses money once labour is counted.

Frequently asked questions

What is COGS for a handmade product?

Cost of goods sold is everything it takes to make one unit: materials, packaging and the labour that goes directly into it. Overheads like software or rent are usually tracked separately as expenses.

What is the difference between margin and markup?

Margin is profit as a share of the selling price. Markup is how much you add on top of cost, as a share of cost. A 100% markup is a 50% margin before fees.

What is a good profit margin for a small product business?

It varies by product, but many makers aim for 30-50% after fees and labour. If your margin is thin, check whether fees or unpriced labour are the cause before raising prices.

Should I include my own time in the cost?

Yes. If you leave it out, your 'profit' is really your wage, and you cannot hire help or scale without losing money.

Why can the target price be 'not reachable'?

If fees % plus your target margin add up to 100% or more, no price can hit that margin. Lower the target or reduce percentage fees.

Not tax advice. This calculator gives estimates for planning and record keeping only. It is not tax, legal, accounting or financial advice. Fee rates and tax rules change; check the official source (Etsy's fee page, IRS.gov, your state or your contract) or ask a qualified professional before acting on the numbers.

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Last reviewed 2026-11-15.