Most candle makers price the same way: take what the jar and wax cost, double it, and round to a number that feels right. It feels safe and it quietly loses money on every candle, because it skips your time and the fees the marketplace takes. Here is the formula that actually works, written for candles specifically, with a full worked example you can copy.
We make CraftCost, a phone-first pricing app, so treat this as a guide from an interested party. The math below is free and works in a spreadsheet, on paper, or in any app.
The four costs a candle price has to cover
A profitable candle price is not "materials times two." It is four things added up and then marked up:
1. Materials per candle, not per batch. The trap is pricing off what you paid for a whole bag of wax instead of what one candle uses. 2. Labor, your time melting, pouring, curing checks, labeling and cleanup, valued at a real hourly rate. 3. Overhead per candle, the share of your melter, scale, rent, and packaging that each candle should carry. 4. Marketplace and payment fees, so the price reflects what you keep, not what the customer pays.
Costing your materials per candle
This is where candle pricing goes wrong most often, because supplies are bought in bulk and used in small amounts. Convert every supply to a per-candle cost:
- Wax. If a 10 lb (4,536 g) box costs $30 and an 8 oz candle uses about 200 g of wax, that is roughly $1.32 of wax per candle.
- Fragrance oil. If a 16 oz bottle costs $24 and you use 1 oz per candle at a 10 percent fragrance load, that is $1.50 per candle.
- Wick, jar, lid, label, warning sticker, and packaging. Add each one as the per-unit price you actually paid, including shipping. A jar at $1.80, wick $0.15, lid $0.60, label and warning $0.25, box $0.70.
Add those and you have a real materials number. In the example above that is about $6.42 per candle.
The pricing formula
The same three lines work for any candle:
- True cost = materials + (hours worked times your hourly rate) + overhead per candle.
- Price before fees = true cost divided by (1 minus your target margin). For a 50 percent margin, that is true cost times two.
- Final price = price before fees divided by (1 minus your fee rate). If Etsy and payment fees are about 10 percent, divide by 0.9.
A full worked example: an 8 oz soy candle
- Materials: $6.42 (from above).
- Labor: 15 minutes of hands-on work at $18 per hour is $4.50.
- Overhead: $1.00 per candle for melter, scale, electricity and studio share.
- True cost = $11.92.
Now mark it up and cover fees:
- At a 50 percent margin: $11.92 times 2 = $23.84 before fees.
- After about 10 percent in Etsy plus payment fees: $23.84 divided by 0.9 = about $26.49.
Round to $26 or $27. Compare that to the "wax and jar times two" instinct, which might land near $7 and is below your true cost before a single fee is paid. That gap is the money lost on every sale.
Wholesale and craft fairs
If a shop wants to stock your candles, they expect to pay about half of your retail price so they can mark it up. That only works if your retail price already has a healthy margin baked in. Price retail properly first, and your wholesale price (retail divided by two) should still clear your true cost. At craft fairs you skip marketplace fees, so the same retail price simply keeps more.
Frequently asked questions
How much should I charge for an 8 oz candle? For most handmade soy candles, a true cost around $10 to $13 leads to a retail price near $24 to $30 after a healthy margin and fees. Run your own numbers with the formula above, because wax, fragrance and jar choices move the cost a lot.
What markup should candle makers use? A 50 percent margin (doubling your true cost) is a common floor. Premium scents, custom vessels and strong branding support more. The key is to mark up the true cost, not just materials.
Why are my candles selling but not making money? Almost always because the price leaves out your labor and the marketplace fees. Add both and re-price. A 15 minute candle at $18 per hour is $4.50 of cost that "materials times two" ignores entirely.
Do I include fragrance and wick in the cost? Yes, per candle. Convert the bottle and bag prices to what one candle actually uses. Skipping the small items is how a price drifts below cost.
Related guides
- Free handmade pricing calculator
- How to price handmade soap: batch costing made simple
- How to price handmade jewelry to sell
- The best handmade pricing apps in 2026, compared honestly
CraftCost does this arithmetic for you and keeps your wax, fragrance and jar costs on file so you never re-enter them. It is free on iOS and Android, works offline, and needs no account. The formula above is the part that matters, and it works anywhere.