Cake Pricing Calculator

Home bakers price as though their time were free, then wonder why the work stops being worth it.

Clear
Price to charge1085.4 per serving
Total cost86.4
Ingredients1213.9% of the cost
Labour724 hours at 18 — 83.3% of the cost
Overhead2.4
Margin21.6
As a multiple of ingredientsthree to four times is a common commercial floor
If you costed your time at nothing18the price most home bakers arrive at, and why the work stops feeling worth it
The margin is not profit. It covers the orders that go wrong, the quotes that come to nothing and the cake remade the night before — which is why commercial bakeries work on a multiple rather than a markup.

The formula

price = (ingredients + labour + overhead) * (1 + margin)

Ingredients are the smallest part

A cake that costs eight pounds in ingredients does not sell for sixteen. The hours are the real cost, and home bakers routinely price as though their time were free — then wonder why the work does not feel worth it. Cost the hours at a rate you would actually accept and the arithmetic becomes honest.

Overhead is real even at home

Electricity, tin liners, packaging, the boxes, the delivery, the proportion of the mixer that wore out. None of it is large individually and together it is commonly 15 to 25 % of the ingredient cost. Leaving it out is the second half of underpricing.

Margin is not profit

The margin covers the orders that go wrong, the quotes that come to nothing, and the cake that has to be remade the night before. A commercial bakery works on a multiple rather than a markup for exactly this reason, and three to four times the ingredient cost is a common floor.

Recipes are starting points

Ovens run hot or cold by 20 degrees, flour absorbs water differently by season and brand, and the same joint of meat cooks at a different rate depending on its shape rather than its weight. Everything here is a planning figure that gets you close enough to start, and the thermometer, the scales and your own notes from last time are what finish the job.