Hourly Rate Pricing Formula Online Calculator

Make sure you're earning for your time, not just covering your materials.

The Hourly Rate Formula helps you price your handmade products based on the actual time you spend making them, plus the cost of materials.

It's ideal for time-intensive crafts like custom jewelry, embroidery, woodworking, or anything that takes an hour or more to create.

Instead of guessing, this formula ensures you’re getting paid fairly for your time and effort.

Why Use the Hourly Rate Formula?

• Built for time-intensive or custom work
• Helps you avoid undercharging for labor
• Flexible - you set your hourly rate
• Great for one-of-a-kind or commission-based items

If your product takes more than a few minutes to make, or you create custom orders, consider using this pricing method.

Example Calculation

Let's say you create custom wire-wrapped gemstone necklaces. Here's an example of how the Hourly Rate Formula works in action:

Time Spent: 90 minutes

Hourly Rate: $20/hour

Materials Cost: $10.00

Calculation:(1.5 hrs × $20) + $10 = $40.00 retail price

This formula ensures you're not just covering materials, you're also being compensated for your skill and labor.

Try the Hourly Rate Calculator

Use the calculator below to find your target retail price based on your time, hourly rate, and material costs.

When to Use This Formula

Download the Free Hourly Rate Pricing Worksheet

Make sure you're being paid what your time is worth!

Use this free printable worksheet to apply the Hourly Rate Pricing Formula, one step at a time. It helps you set prices that truly reflect your time, skill, and effort, so you can price your crafts with confidence

Use this worksheet to:

Track how much time you spend on each product

Set and apply your ideal hourly rate

Add in material costs

Calculate a fair, profitable retail price

Perfect for custom work, time-intensive products, or anyone ready to stop underpricing and start valuing their time.

Download the Hourly Rate Worksheet (PDF)

Want to Compare Pricing Methods?

Back to the Full Craft Pricing Formula Guide: Learn how this formula stacks up against others, and which one is best for your current business stage.