How to price home-baked goods
The formula is simple: (ingredients + packaging + labor) ÷ items in the batch = your cost per item, then multiply by a markup to get your price. The hard part is honesty about the inputs — and the input most home bakers skip is their own time. If a batch of decorated cookies takes four hours and you charge only for flour and sugar, you're paying customers for the privilege of baking.
What markup is fair? A 2× markup means half your price is profit and overhead; 3× is common for custom and decorated work. If your price feels shockingly high compared to a supermarket, remember: you're not competing with the supermarket. Custom bakes are a service, not a commodity.
Two costs this calculator lets you fold into "packaging & misc": boxes, ribbons, labels, and a share of utilities. If you sell regularly, also check your local cottage food laws — most regions require registration above certain revenue levels.