Basic Markup Pricing Formula Online Calculator

The basic markup formula is a simple way to price your handmade products for profit.

What Is the Basic Markup Formula?

The Basic Markup Formula is one of the easiest ways to calculate a profitable price for your handmade products. It's perfect for beginners and hobby sellers who want a quick, no-fuss pricing method that covers costs and builds in a fair profit.

Simply add up what it cost you to make the product, including your time and materials, and then multiply that number by two. The result is a retail price that should cover your costs and leave room for a modest profit.

Why Use the Basic Markup Formula?

• Easy to Use: No complicated calculations or spreadsheets needed.
• Covers Your Time & Costs: Includes both materials and labor.
• Flexible: Works well for low-cost or quick-to-make products.
• Great Starting Point: Helps you avoid underpricing your work.

The basic markup formula is a fantastic starter pricing strategy. It's not ideal for every situation, but it is quick to use and gives you a ballpark retail price that covers your costs and includes a modest profit.

This approach is best suited for hobbyists and new handmade business owners who want a fast and easy way to set a price that won't leave you operating at a loss.

Example Calculation

Let's say you make hand-poured soy candles. Here's what your pricing calculation might look like if you use this craft pricing formula:

Materials Cost: $7.00

Labor Cost: 30 minutes at $15/hour = $7.50

Calculation: ($7.00 + $7.50) × 2 = $29.00 retail price

Pro Tip: Be realistic when choosing your labor rate. Think about what similar professionals earn and factor in your experience and local market.

Try the Basic Markup Calculator

Use the calculator below to try it for yourself. Just enter your materials and labor cost, and it will calculate your suggested retail price using this formula.

When to Use (and When to Try a Different Strategy)

The basic markup formula works best for:

• simple, quick crafts
• low-cost materials
• selling in lower-volume or casual markets

As your business grows or your products become more time- or cost-intensive, you might outgrow this formula. That's when you can explore more advanced pricing methods, like the Overhead-Adjusted Formula or the Profit Goal Formula.

Download the Free Basic Markup Worksheet

Want to keep things simple and organized?

Grab your free printable worksheet to help you calculate prices using the Basic Markup Formula step-by-step.

You can easily use this PDF to:

• Track material and labor costs
• Calculate your retail price using the formula
• Keep a written record for each product you price

Whether you're at your desk or prepping for a craft fair, this worksheet makes pricing quick and repeatable. No additional tools, like apps or spreadsheets, are needed!

Download the Basic Markup Worksheet (PDF)

Want to Learn More?

Go back to the full Craft Pricing Formula Guide to compare all six formulas and find the one that fits your business best.

Pro Tip: Bookmark this page and use it any time you need a fast, reliable price estimate without overthinking it.