Product Pricing Calculator
Pricing a product is easy to get wrong when you only look at what the materials cost.
A sustainable selling price needs to account for the work involved, your costs, selling fees and the profit you want to make.
The Paid-for-Labor Calculator gives you a practical way to calculate what your products need to sell for.
What is a product pricing calculator?
A product pricing calculator takes the numbers behind a product — what the materials cost, how long it takes to make, what your time is worth and what a sale costs you in fees — and works out the price that covers all of them. Instead of comparing yourself to other sellers, you start from your own costs and decide the profit you want on top.
What should you include when pricing a product?
Material costs
Everything consumed by one finished product: raw materials, components, packaging and the offcuts you cannot reuse.
Your time
The hours that go into making the product, including preparation, finishing and packing.
Your hourly rate
What one hour of your work is worth. Choose a rate you would be willing to be paid by someone else for the same work.
Selling fees
Marketplace, listing and payment fees are a percentage of the sale, so they reduce what actually reaches you.
Desired profit
Profit is what remains after your costs and your own pay. It is what lets the business buy stock, absorb mistakes and grow.
How to calculate a product selling price
Labor cost = time spent × hourly rate
Minimum selling price = (material costs + labor cost) ÷ (1 − selling fee percentage)
Dividing by the share of the sale you keep is what makes the fee come out of the final price instead of out of your margin.
Example product pricing calculation
Example only — not a recommended price
- • Material costs: €8
- • Time spent: 1 hour
- • Hourly rate: €25
- • Selling fee: 10%
Labor cost: 1 × €25 = €25
Base cost: €8 + €25 = €33
Minimum selling price: €33 ÷ 0.90 = €36.67
Your own numbers will differ. This example simply shows how the calculation works.
Why labor belongs in your product price
If your price only covers materials and fees, the hours you worked are paid for out of nothing. That is why a product can sell steadily and still leave you with no money: the work was never in the price. Putting labour in the calculation makes the trade-off visible, so you can decide whether to raise the price, speed up the process or stop making that product.
Who is this pricing calculator for?
Makers, crafters, artists, product sellers, online sellers and small creative businesses. Because you enter your own selling fee percentage, it works whether you sell on your own webshop, at markets, or on a marketplace such as Etsy — there is no shop integration and no automatic fee lookup.
Frequently Asked Questions
- What does a product pricing calculator do?
- It turns your inputs — material costs, time spent, hourly rate and selling fees — into a selling price that covers all of them, instead of leaving you to guess a number that feels right.
- How do I calculate my labor cost?
- Labor cost = time spent × hourly rate. One hour at €25 per hour is €25 of labour in that product.
- Why divide by the selling fee instead of adding it?
- Fees are taken out of what the buyer pays. At a 10% fee you keep 90% of the sale, so dividing your costs by 0.90 gives a price where the fee is genuinely covered.
- How much does The Paid-for-Labor Calculator cost?
- €17 one-time payment. No subscription. No monthly fee.
- Does it connect to Etsy or other shops?
- No. There is no shop integration and no automatic fee lookup. You enter your own selling fee percentage, which means it works for any marketplace, webshop or in-person sale.
New to this? Read our guide on how to price products.
Ready to stop guessing what to charge?
One-time payment. No subscription. No monthly fee.