What this calculator does
A cake’s ingredient bill is only part of its cost. Add packaging, an allocation for overhead and the value of your working time before deciding what to charge. This calculator applies a target profit margin to those costs and shows the price per serving. It does not add sales tax or marketplace fees.
Formula, assumptions and sources
Cost = ingredients + packaging + overhead + hours × labour rate. Price = cost ÷ (1 − profit margin). Margin is a percentage of selling price, not markup. Excludes tax and selling fees.
Worked example
This example uses the initial values shown in the form. It is illustrative and is not a saved personal result.
Example inputs
- Currency
- USD
- Ingredient cost
- 18
- Packaging cost
- 4
- Allocated overhead
- 5
- Labour hours
- 3
- Hourly labour rate
- 15
- Target profit margin (%)
- 25
- Number of servings
- 12
Example result
Bars share a zero baseline. Values are rounded for display.
View chart data
| Item | Value |
|---|---|
| Ingredients | 18 |
| Packaging | 4 |
| Overhead | 5 |
| Labour | 45 |
| Profit | 24 |
Labour is included as a cost. Adjust overhead for your business.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit divided by selling price. Markup is profit divided by cost. A 25% margin on a cost of 75 gives a price of 100.
Should I include my own baking time?
Yes, if the price should compensate you for that time. Enter labour hours and a rate that fits your business.
Method and example checked 4 November 2026. How we check calculations