Candle Pricing Calculator — Cost, Wholesale and Retail Price
Work out what to charge for handmade candles: wax, fragrance oil, wick, vessel, packaging, labor and overhead per candle, then the wholesale and retail price and your profit margin.
How it works
Wax cost = wax weight × wax price per kg (or lb) · Fragrance oil = wax weight × fragrance load; cost = that weight × oil price · Materials = wax + fragrance + wick + container + packaging · Labor = minutes ÷ 60 × hourly rate · Total cost = (materials + labor) × (1 + overhead %) · Wholesale = total cost × wholesale multiplier · Retail = wholesale × retail multiplier
Candle makers usually price with a cost-plus ladder: add up every material and your own labor to get the true cost of one candle, add a share for overhead, then multiply by about 2 for the wholesale price and by about 2 again for retail (keystone pricing). Shops buying wholesale need that gap to make their own margin, so your retail price should leave room for it even if you sell direct. Fragrance load is measured as a percentage of wax weight; most waxes hold 6–10%, and the label should state the net wax weight sold.
Worked example
A 200 g candle with wax at $6 per kg costs $1.20 in wax; 8% fragrance load is 16.0 g of oil at $40 per kg = $0.64. Adding a $0.30 wick, $2.50 jar and $1.00 packaging gives materials of $5.64, plus 10 minutes of labor at $20/hour ($3.33) and 10% overhead: a total cost of $9.87. Doubling gives a wholesale price of $19.74 and doubling again a retail price of $39.48, a 75.00% gross margin.
Sources: CandleScience — How to price your candles · U.S. SBA — Calculate your startup costs and pricing
Frequently asked questions
How do you price handmade candles?
Add up wax, fragrance oil, wick, container, packaging and your labor for one candle, add an overhead percentage, then multiply by 2 for wholesale and by 2 again for retail. A $9.87 total cost becomes about $19.74 wholesale and $39.48 retail.
How do I calculate fragrance oil per candle?
Multiply the wax weight by the fragrance load. 200 g of wax at an 8% load needs 16 g of fragrance oil; 8 oz of wax at 10% needs 0.8 oz.
Should I include my labor in the candle price?
Yes. If you leave labor out, the price only covers materials and you work for free; it also means you cannot afford to hire help as you grow. Use a realistic hourly rate and the time per candle for a full batch divided by the number of candles.
What profit margin should a candle business have?
Selling direct at retail with keystone pricing usually gives a gross margin of 70–75% on the cost of goods. Wholesale orders give a smaller margin (about 50%) but larger volume.
Related calculators
Planning estimate only. Real results depend on your actual costs, prices, taxes and market — check the figures with your accountant or adviser before making business decisions.