How the price is built
Materials plus your hours at your hourly rate make the base cost. Overheads add a percentage on top. Then the price is raised so that, after the selling platform takes its percentage and any fixed fee, what’s left still covers everything: price = (cost + fixed fee) ÷ (1 − fee %).
Which hourly rate
The tool starts at £12.71, the UK National Living Wage for workers aged 21 and over from 1 April 2026 (GOV.UK). It isn’t a legal minimum for your own handmade sales, only a reference point; many makers price below it and use the “try a price” box to see the real figure.
Etsy fees
Etsy’s fees page (UK version, as archived on 28 June 2026) lists a listing fee of 0.20 USD per item and a transaction fee of 6.5% of the item price plus the postage and gift wrapping you charge. Payment processing fees depend on where your bank account is, and some countries add a regulatory operating fee; check both in Etsy’s Payments Policy and add them to the fee boxes. Choosing Etsy fills in the 6.5% only.
Yarn cost
Use the metres your item uses. Our grams to metres converter works it out from the weight of a finished piece, and our guides list typical totals for toys, hats and blankets. Tick “whole balls” if leftovers won’t be used for anything else.