Material Cost: The total cost of all materials used in your craft project. This includes any supplies, components, or raw materials needed to create your item.
Labor Hours: The number of hours you spend working on the project. This includes time spent on design, preparation, production, and finishing touches.
Hourly Rate: The amount you want to earn per hour of work. Consider your skill level, experience, and the complexity of the project when setting this rate. For crafters, the average hourly rate typically ranges from $15 to $50 per hour. Beginners might start at the lower end, while experienced artisans or those creating complex, high-end items might charge at the higher end or even beyond this range. Remember to factor in your location, market demand, and the uniqueness of your skills when determining your rate.
Overhead Percentage: Additional costs as a percentage of material and labor costs. This covers expenses like:
Profit Margin: The percentage of profit you want to add on top of your costs. This ensures your business is sustainable and allows for growth. A common range is 20% to 50%, depending on your market and competition.
Calculation Method: The calculator uses the following formula:
Remember to regularly review and adjust your pricing strategy based on market trends, customer feedback, and your business goals.