the margin kitHow to price candles: the formula, with 3 worked examples
Wax is cheap, so candles feel easy to price. Then your time, the jar and Etsy's fees arrive. Here's the formula, worked through on three real candles, including one that loses money at $6.
Short answer: add up the cost of one candle (wax, fragrance, wick, vessel, labels and packaging), add your time at an hourly wage and 10% overhead, then divide by what's left after Etsy's fees and your profit margin. With US Etsy fees and a 30% margin: minimum price = (total cost + $0.45) ÷ 0.605.
Step 1: cost your materials per gram, not per bag
Buy in packs, price in grams. Divide the pack price by the pack size once, and every recipe becomes simple multiplication.
| Supply | Pack | Cost per unit | Used in an 8oz jar | Cost |
|---|---|---|---|---|
| Soy wax | $32 for 4,536 g (10 lb) | $0.0071 / g | 200 g | $1.41 |
| Fragrance oil | $19 for 473 ml | $0.040 / ml | 16 ml | $0.64 |
| Cotton wick | $9 for 100 | $0.09 each | 1 | $0.09 |
| Amber jar 8oz | $36 for 24 | $1.50 each | 1 | $1.50 |
| Wick sticker + warning label | $5/100, $8/250 | $0.05, $0.03 | 1 each | $0.08 |
| Materials for one candle | $3.73 | |||
Notice that the jar costs more than the wax. That's normal, and it's why vessel choice moves your price more than wax choice does. These are example supplier prices; use your own.
Step 2: add packaging, your time and overhead
- Packaging: box, tissue, insert card. $1.00 per jar candle in our example.
- Your time: count every minute of hands-on work for one candle: melting, pouring, wicking, labelling and packing, divided across the batch. 12 minutes at $20/hour is $4.00.
- Overhead: pouring jugs, thermometers, electricity, software and samples. A simple 10% of materials + packaging + labor covers it: $0.87.
Total cost of one 8oz amber jar candle: $3.73 + $1.00 + $4.00 + $0.87 = $9.60.
Step 3: build in Etsy's fees and your margin
Etsy takes about 9.5% of the sale (6.5% transaction + 3% payment processing in the US) plus $0.45 per order ($0.25 processing + $0.20 listing renewal). If you also want 30% of the price left as real profit after paying yourself, only 60.5% of the price is available to cover costs:
Minimum price = (total cost + fixed fees) ÷ (1 − fee % − margin %)
= ($9.60 + $0.45) ÷ (1 − 0.095 − 0.30) = $16.61
Your break-even price, the point where you earn your wage but the business makes nothing, is ($9.60 + $0.45) ÷ 0.905 = $11.10. Anything below that loses money.
Three candles, three verdicts
| Candle | Total cost | Minimum price | Selling at | Profit per sale | Verdict |
|---|---|---|---|---|---|
| 8oz amber jar (12 min) | $9.60 | $16.61 | $24 | +$11.67 (48.6%) | Healthy |
| 8oz wood wick (15 min) | $11.90 | $20.42 | $20 | +$5.75 (28.7%) | Raise price |
| 4oz travel tin (8 min) | $5.92 | $10.53 | $6 | −$0.94 | Losing money |
The travel tin is the classic trap. It feels like a cheap add-on, so it gets a cheap price. But it still needs a wick, a vessel, labels, packing and 8 minutes of your time, and Etsy's fixed $0.45 hits a $6 order hardest. At $6 it loses $0.94 on every sale. It needs at least $10.53, or should be sold only as an add-on to a bigger order.
The wood wick candle isn't losing money, but at $20 its margin is 28.7%, just under the 30% target. A $1 increase fixes it.
Wholesale and market pricing
A common rule is wholesale = 2 × your total cost and retail = 2 × wholesale (keystone). For the amber jar that's $19.20 wholesale and $38.39 suggested retail. If a stockist wants your candles at a price below 2× cost, check that your time is still paid before you say yes. Craft fairs have no Etsy fees, but count the stall fee and your hours at the table.
Quick checklist
- Price every supply per gram, ml or piece from the pack price.
- Write a recipe for each candle size and vessel.
- Time a full batch and divide by the number of candles.
- Add packaging and 10% overhead.
- Divide by (1 − fees − margin) to get the minimum price.
- Re-check every time wax, jars or shipping supplies go up.
Want to check one order's fees first? Try the free Etsy fee calculator. Selling more than candles? The general handmade pricing guide uses the same formula.
Candle Pricing Calculator
Price every candle so you're paid for your time: wax, fragrance, wicks, jars, labels, labor, overhead and Etsy fees, with the minimum price for your target margin.
See the Candle Pricing Calculator · $12 Free fee calculatorFAQ
How much should I charge for a homemade candle?
Enough to cover materials, packaging, your time, overhead and fees, plus a margin. In our example an 8oz soy candle in an amber jar costs $9.60 all-in, so its minimum price on Etsy for a 30% margin is $16.61.
What is the formula for pricing candles?
Minimum price = (materials + packaging + labor + overhead + fixed fees) ÷ (1 − percentage fees − target margin). With US Etsy fees (9.5% + $0.45) and a 30% margin, divide the total cost plus $0.45 by 0.605.
How do I calculate the cost of wax per candle?
Divide the pack price by the grams in the pack, then multiply by the grams your candle uses. A $32 bag of 4,536 g is about $0.0071 per gram, so 200 g of wax costs $1.41.
Should I include my time when pricing candles?
Yes. If you leave it out, you work for free and can't afford to hire help later. Time the whole batch and divide by the number of candles.
Why do small candles and tins lose money?
Each one still needs a wick, a vessel, labels, packing and your time, and fixed fees like Etsy's $0.25 processing and $0.20 listing fee take a bigger share of a small order. In our example a $6 tin loses $0.94 per sale and needs at least $10.53.