Use this laser engraving pricing calculator to turn one design into a price that covers the blank, the laser's time, your time and the selling fees. It's most useful right before you quote a custom job or post a new listing, when it's tempting to just look at what everyone else charges.
Pricing a laser job, one input at a time
The blank. Enter what the blank or sheet costs per finished item, plus masking, paint or finish. If you nest several pieces on one sheet, divide the sheet price by the number of pieces you actually get out of it, not the number you were hoping to fit. A coaster and an engraved sign can share a design and still cost very different amounts to make.
Laser time. Enter run time per item, what the laser cost, how many hours you expect it to last, and upkeep per hour for lenses, tubes and filters. Run time should include extra passes. If a deep engrave needs three passes, put in three passes' worth of time rather than using a flat price for everything.
Power. Enter the average draw in watts and your electricity rate. Include the exhaust fan and air assist if they run with the laser. Per piece it's usually pennies, but it's still a cost.
Your time. Count artwork checks, focusing, placing the blank, masking, cleaning off residue, finishing and packing. The laser does the marking, but you're still doing a lot around it. Multiply those minutes by your labor rate and add packaging.
Scrap and selling. Set a failure allowance for scorched blanks, wrong power settings and pieces that don't pass inspection. Then pick the sales channel, your target margin and any shipping you charge.
Worked example
Use a $1.80 blank or sheet cost and $0.15 for masking and finish. Enter 12 minutes of run time, a $1,200 laser, 6,000 hours of expected life, $0.25 upkeep per hour, and 350 watts of average power draw. Add 5 minutes of hands-on time, $0.60 for packaging and other costs, $25 per hour for labor, $0.18 per kilowatt-hour for electricity, and a 3% failure allowance. Select Etsy, a 40% target profit margin, and $0 shipping charged to the buyer.
Material is $1.80 + $0.15 = $1.95. The calculator shows $0.09 for machine use, $0.01 for electricity, $2.08 for labor, $0.60 for packaging and $0.14 for failures, for a total cost of $4.88. At a $10.99 selling price, Etsy fees are $1.49 and profit is $4.62. That's a 42% margin and $23.09 of profit per machine-hour. Lines and totals are rounded separately, so a hand total can be off by a cent.
Why 42% when you asked for 40%? The suggested price gets rounded up to the next .49 or .99, and that extra bit of price goes straight to margin. A bigger engraving area, another pass or a longer cleanup will change the quote, so keep separate estimates for products that need different setup.
Costs that are easy to miss
Masking, stain and finish belong in material cost, along with whatever you clean the piece with. A ruined blank costs more than a few extra minutes of laser time. Test burns on new material use both your time and some stock. Detailed engravings sometimes need more passes than you planned. And Etsy charges its fees on shipping and gift wrap you collect, not only on the item.
Profit per machine-hour
This example makes $4.62 in 12 minutes of laser time, about $23.09 per machine-hour after rounding. That's handy for comparing a quick batch item against a big engraved panel that ties up the bed for an hour. Look at total profit too, though. A small item can have a great hourly rate and still only bring in a few dollars per sale.
FAQ
How much should I charge for laser engraving?
Add the blank, supplies, machine use, electricity, your hands-on time, packaging, failures and selling fees, then set a price that meets your margin. The example here sells for $10.99 with a $1.80 blank and a 12 minute run.
Should I charge for laser setup time?
Yes. Artwork checks, focusing, masking, placement and cleanup are all labor. If a batch of identical pieces shares one setup, spread that time across the batch instead of charging the whole setup to every piece.
How do I price engraved items cut from a sheet?
Divide the sheet cost by the number of good pieces you get from it, counting offcuts and any damaged areas. Then add each piece's run time, labor and finishing supplies.
What profit margin should I use for laser engraving?
Pick one that covers your costs and leaves a return you're happy with. Here, a 40% target became 42% once the price was rounded. Check the margin again whenever the blank cost, run time or sales channel changes.
The full Tidy Margin laser workbook keeps all your products and materials in one place, with items per sheet and batch setup built into each price.