Profit Goal Pricing Formula Online Calculator

By Lisa McGrimmon | Published April 12, 2025
If you buy something through links on Craft Professional, I may earn a referral fee. To learn more see my disclosure.

Set business income goals, and price your handmade products to hit them.

The Profit Goal Formula helps you price your handmade products based on a specific income goal. Rather than pricing from the bottom up (materials + time), you work backward from how much profit you want to earn.

The Formula: Retail Price = (Materials + Labor + Overhead) + (Profit Goal ÷ Units Sold)

This formula is perfect for crafters who treat their business seriously and want to make consistent income, not just break even.

Why Use the Profit Goal Pricing Formula?

  • Start with a monthly or yearly income target
  • Work backward to create price-per-unit clarity
  • Build in labor, overhead, and a healthy margin
  • Great for serious sellers with growth plans

Instead of estimating what to charge, this method gives you a goal-based, business-first approach to pricing.

Example Calculation

Let’s say your goal is to make $1,000/month and you plan to sell 50 handmade planner sets. This example illustrates how the Profit Goal Formula helps you price with purpose and profit in mind.

Materials per unit: $5.00

Labor per unit: $15.00

Overhead per unit: $2.00

Profit Goal: $1,000

Units to Sell: 50

Profit per Unit: $1,000 ÷ 50 = $20

Final Price: $5 + $15 + $2 + $20 = $42.00 per product

That's a strategic price point and a clear path to your income goal.

Try the Profit Goal Calculator

Enter your costs, profit goal, and projected sales volume into the calculator below. It'll calculate your suggested retail price instantly.

Profit Goal Pricing Calculator

Retail Price = (Materials + Labor + Overhead) + (Profit Goal ÷ Units Sold)







When to Use This Formula







Consider using this formula if you:

  • Want to replace or supplement your income
  • Prefer goal-based business planning
  • Have clear monthly revenue targets
  • Want to scale your craft business over time
  • Need to figure out whether your pricing supports your goals

If you've ever asked yourself, "How many do I need to sell to make $X?", this formula gives you the answer.

Want to Explore Other Pricing Methods?

Return to the Full Craft Pricing Formula Guide: Compare this strategy with simpler formulas like Basic Markup or more advanced ones like Overhead-Adjusted.

More Craft Pricing Calculators

New! Comments

Have your say about what you just read! Leave me a comment in the box below.