Overhead Adjusted Pricing Formula Online Calculator

Treat your craft like a business, and price for lasting profit.

The Overhead-Adjusted Pricing Formula goes beyond the basics. It includes materials, labor, business expenses (overhead), and your desired profit, giving you a realistic, sustainable retail price.

This method is perfect for serious handmade sellers who want to cover all the costs of running a craft business, not just the supplies and time it takes to make a product.

Why Use the Overhead Adjusted Formula?

• Covers all business costs, not just materials
• Builds in profit intentionally
• Great for sellers scaling beyond hobby level
• Helps avoid burnout by pricing sustainably

This formula ensures your pricing reflects the full picture, from tools and utilities to packaging, shipping supplies, rent, and admin time.

Example Calculation

Imagine you make handbound journals and run your business from home. This example shows exactly how the Overhead-Adjusted Formula helps you price for profit:

Materials Cost: $8.00

Labor: $12.00 (48 mins at $15/hr)

Overhead (per unit): $3.00

Profit Goal: $7.00

Calculation:$8 + $12 + $3 + $7 = $30.00

This pricing method ensures you're not just covering costs, you're building a craft business that can grow.

Pro Tip: A practical approach to estimating overhead is to use a flat percentage, typically 10% to 15% of your materials and labor cost. For example, if materials plus labor is $20, your estimated overhead would range from $2.00 to $3.00.

Try the Overhead Adjusted Calculator

Ready to price your products like a pro? Enter your materials cost, labor, overhead, and profit goal into the calculator to get a retail price you can rely on.

When to Use This Formula

Download the Free Overhead-Adjusted Formula Worksheet

Want to break down your pricing step by step without missing a single cost?

Download this free printable worksheet to help you apply the Overhead-Adjusted Formula with confidence and clarity.

Use this worksheet to:

• List and total your materials and labor costs
• Estimate your per-item overhead
• Add in your profit margin
• Calculate a final retail price that supports a real, sustainable business

Perfect for sellers who want to stop underpricing and start building a business that actually pays.

Download the Overhead-Adjusted Worksheet (PDF)

Want to Compare Pricing Strategies?

Return to the Full Craft Pricing Formula Guide: Compare this formula to others and choose the one that best fits your business model.