Business basics
How to price machine embroidery without forgetting your time
Use materials, labor, overhead and a true profit margin, not a random price per stitch.
Build a cost floor
Add blank item cost, consumable materials, paid designs, your hands-on labor and an overhead allowance. Machine wear, electricity, software and rejected samples are not free. Separate machine run time from labor if you can work on something else while the design stitches.
Margin is not markup
A 50% margin means profit is half the selling price. If your cost is $20, the price needs to be $40. Adding 50% to $20 gives $30, which is only a 33.3% margin. Our calculator uses price = cost ÷ (1 - margin).
Charge for setup when appropriate
A custom logo may require digitizing, proofing and test stitches before the first unit. Do not hide hours of one-time work inside a low per-item quote. Make it clear what the customer receives and which changes are included.
Check market reality
A cost-based price is a floor, not proof buyers will pay. Compare like-for-like work and test demand. Taxes, marketplace fees and local business requirements are outside this calculator; include those separately.