Your time does not become free because you enjoy making something. Give it an allowance, then include the packaging, overhead and selling fees that travel with each order.
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Let’s work it out.
The starting figures are illustrations, not industry benchmarks. Replace them with your own costs and assumptions. Calculations happen in your browser; figures are not saved to your account or sent as analytics properties.
Changes the display label only. It does not convert amounts. Use a consistent basis for tax-inclusive or tax-exclusive figures.
Your planning estimate
- Estimated price per item
- AUD 46.14
- Cost allowance per item
- AUD 32.30
- Percentage selling fee per item
- AUD 4.61
- Planned surplus per item
- AUD 9.23
How this calculation works
Add materials, making hours × labour allowance, packaging, allocated overhead and any fixed selling fee. Divide by (1 − percentage selling fee − target margin). Selling-fee percentage and margin must total less than 100%. This assumes percentage fees apply to this item’s price; fees on shipping, tax or entire orders may need a different allocation.
A little more context: See a product-order invoice example.
How the calculation works
Add materials, making hours × labour allowance, packaging, allocated overhead and any fixed selling fee. Divide by (1 − percentage selling fee − target margin). Selling-fee percentage and margin must total less than 100%. This assumes percentage fees apply to this item’s price; fees on shipping, tax or entire orders may need a different allocation.
A worked example you can change
The tool starts with the illustrative figures below. They demonstrate the calculation; they are not industry averages, recommended rates or promises about what you will earn. All monetary figures in this example are AUD.
Materials per item: 12 AUD Making hours per item: 0.5 Hourly making-time allowance: 30 AUD Packaging per item: 3 AUD Allocated overhead per item: 2 AUD Fixed selling fee per item: 0.3 AUD Percentage selling fee: 10% Target margin on selling price: 20% Estimated price per item: 46.14 AUD Cost allowance per item: 32.3 AUD Percentage selling fee per item: 4.61 AUD Planned surplus per item: 9.23 AUD
Make the estimate fit your makers & products work
The most useful estimate is one you can explain. Check these details against the actual job or business arrangement before you rely on the result.
- Use the material cost for one saleable item, including a realistic allowance for wastage.
- Allocate overhead across the number of items you genuinely expect to sell.
- Enter fees from your own selling arrangement. The example percentages are not a claim about any platform’s current charges.
What this tool does and does not include
The calculation uses the figures you enter and the method above. It does not fetch market rates, convert currencies, assess demand or calculate tax, payroll or legal obligations. Choose a consistent tax basis for the amounts you enter. Changing display currency changes the label only.
Your inputs stay in this browser page and reset when you leave or reload. You can copy or download a text estimate with its assumptions. If you choose to use Lufu, you can then prepare an actual quote or invoice with the details you have agreed.