What it helps you decide
Combine materials, packaging, labor, overhead, and fees.
Free pricing calculator
Know what every unit costs—and what every sale keeps.
Bring materials, packaging, labor, overhead, and selling fees into one clear calculation. Then compare your current price with the margin you actually want.
Start with the example
The values already filled in are a working example—not a recommendation.
- 1Choose the closest starting point.
- 2Replace the example with your real details.
- 3Read the live result and its important limits.
Your batch
Cost assumptions
Direct costs
Labor
Selling assumptions
Use the right number
Margin and markup are not the same.
Gross margin compares gross profit with the selling price. Markup compares gross profit with your cost. A product can have a 100% markup and only a 50% gross margin.
Gross margin(price − costs − fees) ÷ price
Markup(price − costs − fees) ÷ costs
Common questions
Product margin, without finance jargon.
Should I include my own labor?
Yes. If the product only appears profitable when your time is free, the price is not supporting a durable business.
Is gross margin the same as take-home profit?
No. This is a product-level gross margin estimate. Business taxes, rent, subscriptions, marketing, shipping subsidies, and other operating expenses may still need to be paid.
What is a good margin?
There is no universal target. Channel, category, spoilage, wholesale discounts, labor intensity, and business overhead all matter. Use the target field to test a range rather than treating one percentage as a rule.
Want to keep working with these numbers?
Product Costing Spreadsheet
Track materials, packaging, labor, overhead, fees, cost per unit, and price targets across a reusable product list.
About this free pricing, tax & e-commerce tool
How to use the Margin & Cost-per-Unit Calculator
Combine materials, packaging, labor, overhead, and fees. The calculator runs privately in your browser and is designed to make the assumptions behind the answer visible.
What to have ready
Gather current product cost, paid and owner labor, packaging, selling fees, shipping or fulfillment costs, and the price or margin you want to test.
How to use the result
Use the result to compare scenarios and find the cost or assumption driving the decision. Recheck the plan with taxes, overhead, returns, and channel terms that apply to you.
Complete workflow guide
Product costing and pricing
Your ingredients are only part of the cost. A useful price also pays for packaging, your time, selling fees, waste, and everyday business expenses.
Learn the workflow
Helpful guides for this calculator
Craft & Formulation10 Things Your Craft Business Can't Go Without
The ten operating essentials that turn a creative craft practice into a business that can price confidently, fulfill reliably, and grow without chaos.
Read the guide →Costing & PricingPricing Your First Product With Confidence, Care, and Room to GrowA compassionate pricing guide for new makers who want to cover real costs, respect their work, serve customers honestly, and leave room for a sustainable business.
Read the guide →Costing & PricingThe $25 “Little Treat” Product: How to Build a Bestseller People Buy Just BecauseDesign an affordable, giftable product customers can understand in seconds—without letting packaging, fees, or impulse pricing erase the profit.
Read the guide →Ready for the connected version?
Turn the calculation into a repeatable workflow.
Batch Scale connects recipes, materials, costs, inventory, production, sales, and your storefront in one workspace.