Crochet pricing calculator

Pricing handmade work by guesswork usually means working for nothing. This calculator adds up materials, your time at the rate you want to earn and a share of your overheads, then prices the item by a profit margin or a markup, and shows how the two differ, since they are easy to mix up.

How to use the calculator

1. Choose your currency.
2. Enter materials: the yarn you actually used, plus stuffing, eyes, buttons, labels and packaging.
3. Enter the hours to make and finish the item, and the hourly rate you want to earn.
4. Enter overheads per item: a share of tools, fees, photos and marketing.
5. Choose profit margin or markup, and the percentage.

How the calculator works

Total cost = materials + hours × hourly rate + overheads

That is your break-even price: it already pays you for your time.

Price by margin = total cost ÷ (1 − margin)

Price by markup = total cost × (1 + markup)

Margin is profit as a share of the price, so it must be under 100%. Markup is profit as a share of the cost, and can be any size. A 50% markup is a 33.3% margin; a 50% margin is a 100% markup.

Reading your results

• Total cost (break-even): materials, labour and overheads.
• Selling price: by the strategy you chose.
• Profit after paying yourself: the price minus the total cost.
• Margin / markup: both, so you can compare.
• Cost breakdown: each part of the cost.

Worked example

A plushie with $8 of materials, 2 hours of work at $15 an hour and $2 of overheads:

• Total cost: 8 + 2 × 15 + 2 = $40.
• With a 50% margin: 40 ÷ 0.5 = $80, a $40 profit (a 100% markup).
• With a 50% markup: 40 × 1.5 = $60, a $20 profit (a 33.3% margin).

Accuracy and limits

• The arithmetic is exact and covered by our automated tests. The result is only as good as your hours and costs.
• Taxes are not included. Add sales tax or VAT where it applies.
• Marketplace and payment fees are not taken off here. If you sell online or at a fair, use the selling fees and break-even calculator to set a price that leaves you this much.

Common mistakes

1. Leaving out your time. Materials alone are not the cost of a handmade item.
2. Confusing margin and markup. A "50%" profit means very different prices depending on which one you mean.
3. Forgetting small materials. Eyes, labels, packaging and postage supplies add up.

Tips for more accurate results

• Get your hours from the crochet time calculator, including finishing.
• Check the price against similar handmade items, and adjust your rate or design if it is far off.
• Track your real hours on the first few items you sell.

Frequently asked questions