Candle Profit Margin Calculator
Know your numbers before you set your price. Enter cost and retail price โ see margin, markup, and monthly profit at any sales volume.
Your Pricing Numbers
Gross margin after fees
โ%
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What is a healthy candle profit margin?
For a small handmade candle business, target 50โ65% gross margin after materials and platform fees. Below 40%, you are leaving yourself vulnerable to cost increases (wax prices fluctuate significantly). Above 70%, you may be under-priced for what the market will bear.
Etsy fees breakdown (2026)
| Fee type | Amount | Notes |
|---|---|---|
| Listing fee | $0.20 per item | Charged when listed and renewed |
| Transaction fee | 6.5% of sale price | Includes shipping price if charged |
| Payment processing | 3% + $0.25 | For Etsy Payments (US) |
| Offsite ads (optional) | 12โ15% | Only if you opt in or revenue >$10k |
When to raise your price
- Your candles sell out within 48 hours of listing โ demand is outstripping supply at the current price.
- Your gross margin falls below 50% after all fees.
- Input costs (wax, fragrance oil) have risen but your prices haven't.
- Comparable candles on Etsy with similar quality sell for 20%+ more than yours.