The formula
Labour per item = (minutes ÷ 60) × hourly rate ÷ items made
Batch example: soap
You make 12 bars in one session. Mixing, pouring, cutting and wrapping take 90 minutes in total. You pay yourself £15 an hour.
(90 ÷ 60) × £15 = £22.50 for the batch → £22.50 ÷ 12 = £1.88 per bar
Tracking time accurately
- Time a few real batches with a phone timer rather than estimating.
- Include prep and clean-up, not just the making itself.
- Count photographing, listing and packing if you do those per item. Otherwise put them into overheads.
- Re-time after a few months, because you usually get faster.
Curing or drying time isn't labour unless you're actively working, but it can limit how many you can make.
Try it with your own numbers in the free CraftMargin calculator. It works without an account.