Little Otter Blog
Introducing the Pricing Calculator: know your true profit, product by product
One of the most common questions we hear from small sellers is deceptively simple: "am I actually making money on this?" It sounds like it should be easy to answer, but marketplace fees, VAT rules, postage and your own labour time all pull in different directions - and most sellers are working it out on the back of an envelope, if at all.
That's exactly what our free Pricing Calculator is for.
What it actually calculates
Rather than a generic markup formula, the calculator uses each marketplace's real, current fee structure - transaction fees, payment processing fees, listing fees, advertising, and the less-talked-about "regulatory operating fee" that Etsy and eBay both now charge. You choose your marketplace (Etsy, eBay or Amazon Handmade), enter your costs and price, and it shows you exactly where your money is going.
VAT, done properly
If you're VAT registered - Standard or Flat Rate Scheme - the calculator accounts for it correctly, including reclaimable VAT on materials, packaging and postage where it applies. Add in an optional 20% income tax estimate, and you get a genuinely realistic picture of take-home profit, not just a headline number.
Your time counts too
Labour is entered in hours and minutes, and priced into the calculation properly - because "I'll just charge for materials" is one of the most common ways handmade sellers end up working for less than minimum wage without realising it.
Best of all, it's completely free to use, with no account required. Try it now on the Pricing Calculator page.

