FREE TOOL
Cost of goods calculator for handmade products
Add your materials, hours and overhead to see what a piece really costs, then set a markup to get a price that pays you.
MATERIALS + LABOR$108.00
COST OF GOODS$118.80
SUGGESTED PRICE$237.60
PROFIT PER PIECE$118.80
In Eccolo, every order’s cost breakdown suggests a price for your target margin, ready to send as a quote.SEE COST BREAKDOWN & QUOTES →
How to calculate cost of goods for handmade work
Cost of goods (COGS) is everything it takes to make one piece. For most makers it has three parts:
- Materials. Everything that ends up in the piece, plus packaging.
- Labor. Hours spent making it, multiplied by the hourly rate you want to earn.
- Overhead. A share of studio costs like rent, tools, kiln firings and fees, added as a percentage.
COGS = (materials + hours × rate) × (1 + overhead %)
PRICE = COGS × markup
PRICE = COGS × markup
A markup of 2× is a common starting point for wholesale; many makers use 2× again for retail. Adjust for your market, your time and what similar work sells for.
Questions
Should I pay myself an hourly rate in my pricing?
Yes. If labor is not in your cost of goods, every sale quietly pays you nothing for your time.
What markup should I use for handmade products?
Many makers start at 2× cost for wholesale and 2× wholesale for retail, then adjust for their market.
What counts as overhead?
Costs that are not tied to one piece: studio rent, tools, equipment wear, software, market fees and payment fees.