What is the difference between margin and markup?

Markup applies a percentage to cost. Margin is the percentage of the final price that is profit. For the same target, margin produces a higher price than the same markup.

Do fees apply to the pre-tax price?

Typically marketplace and payment fees are calculated on the sale subtotal (before tax). This tool grosses-up the price so your target profit remains intact after fees.

How do I allocate monthly overhead per piece?

Divide your monthly overhead by the number of pieces you expect to sell that month. The calculator performs this automatically.

How should I set a wholesale price?

Set a lower markup or margin for wholesale, or use a keystone rule of thumb (retail ≈ 2× wholesale) and confirm against your market.

Where can I get accurate metal prices?

Use reputable sources like Kitco’s Jeweler Resources for real-time metal quotes and conversion tables. Enter your per-gram price into the calculator.

How do I handle scrap and wastage?

Use the wastage field to increase the metal cost by an allowance (e.g., 5–15%) to cover saw kerf, filing, and casting loss.

Jewelry Making Calculator — Cost, Wholesale & Retail Pricing

A professional-grade pricing tool for artisans and studios. Compute precise **material, labor, and overhead costs**, then set **profit by margin or markup**. The tool automatically **grosses-up** for marketplace & payment fees and applies **sales tax**, producing clean **wholesale** and **retail** suggestions.

Data Source & Methodology

AuthoritativeDataSource Kitco — Jeweler Resources (weight conversion, density comparison, and live precious metal tools), accessed regularly for industry-standard references. See: weight comparison and conversions tables, and jeweler resource hub. “Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.”

Kitco Jeweler Resources (tables & tools).
U.S. SBA guidance on cost-plus pricing & break-even concepts for small businesses.
Common artisan formulas aggregated from industry guides (e.g., Jewelry Making Journal) to validate wholesale/retail heuristics.

References: Kitco Jeweler Resources; SBA — startup costs & break-even; Jewelry Making Journal pricing formula.

The Formula Explained

Materials:

$$ C_m = w \cdot p \cdot (1+\alpha) + C_{stones} + C_{find} + C_{pack} $$

Labor:

$$ C_\ell = h \cdot r $$

Overhead allocation (per piece):

$$ C_o = \begin{cases} \dfrac{O_{month}}{U_{month}}, & \text{if no override} \\ O_{override}, & \text{if provided} \end{cases} $$

True cost (break-even):

$$ C_{true} = C_m + C_\ell + C_o $$

Target (choose one):

Markup $k\%$: $\quad P^\* = C_{true}\,(1+k)$

Margin $g\%$: $\quad P^\* = \dfrac{C_{true}}{1-g}$

Fee gross-up (percent $f$, fixed $F$) — solving for pre-tax price $P$:

$$ P = \frac{P^\* + F}{1 - f} $$

Tax application ($\tau$): $\quad P_{tax\_in} = P\,(1+\tau)$

Wholesale (markup $k_w$): $\quad P_w = C_{true}\,(1+k_w)$

Retail heuristic (keystone $K$): $\quad P_{ret,heur} \approx P_w \cdot K$

Glossary of variables

w: metal weight (g)
p: metal price per gram (your supplier/spot)
$\alpha$: wastage allowance (decimal)
h, r: labor hours & hourly rate
O_month, U_month: monthly overhead & units sold
F: fixed payment fee; f: % fees (marketplace + payment)
$\tau$: sales tax/VAT rate (decimal)
k, g: markup or margin target (decimal)
K: keystone multiple (rule of thumb)

How It Works: A Step-by-Step Example

Example design: 18k ring, 8 g; spot price/gram $=$ $45; wastage 8%; stones $60; findings $12; packaging $3.50; labor $2.5$ h @ $40/h; overhead $800 with 40 units → $20 per piece; target profit = 60% margin; marketplace 6.5%, payment 3% + $0.30; tax 0%.

Materials: $C_m = 8\cdot45\cdot1.08 + 60 + 12 + 3.5 =$ \$467.30
Labor: $C_\ell = 2.5 \cdot 40 =$ \$100.00
Overhead: $C_o = 800/40 =$ \$20.00
True cost: $C_{true} = 467.30 + 100 + 20 =$ \$587.30
Margin 60%: $P^\* = 587.30 / (1-0.60) =$ \$1,468.25
Fee gross-up: $f=0.065+0.03=0.095$, $F=0.30$ → $P = (1468.25 + 0.30)/(1-0.095) =$ \$1,622.49
Retail with tax (0%): $=$ \$1,622.49
Wholesale (25% markup): $P_w = 587.30 \cdot 1.25 =$ \$734.13; Keystone 2× → \$1,468.26 (pre-fees)

Frequently Asked Questions

Margin vs. markup — which should I use?

Margin describes profit as a share of price; markup is profit as a share of cost. Retailers often plan with margins; makers sometimes think in markups. This tool supports both so you can match your financial reporting.

Why gross-up for fees?

Because fees are charged as a percentage of the sale, you must solve for price so that after fees are deducted, your margin/markup target still holds.

Do I include tax in the target margin?

No. Target margin is applied before tax. Taxes are pass-through to the customer.

Where do I get metal price per gram?

Use reputable sources such as Kitco’s Jeweler Resources. Convert to per-gram and add any supplier premium.

What about karat purity?

Spot prices are often quoted for pure metal; finished alloys and supplier pricing may differ. This tool uses your per-gram input to stay accurate regardless of karat; adjust your per-gram price for purity and premium.

jewelry making calculator

Calculator

Results

Material cost

Labor cost

Overhead / piece

True cost (break-even)

Wholesale (pre-tax)

Retail (pre-tax)

Retail (with tax)

Total fees @ retail