Candle COGS Calculator

Calculate the exact Cost of Goods Sold for your candles. Enter your supply costs and see your true per-candle cost, profit margin, and suggested pricing.

Material Costs

Enter what you paid and how much you use per candle

$
$1.07
$
$0.55
$
$0.13
$
$2.67
$
$0.15
$
$1.50
$
$0.15
$
$0.48

Labor & Overhead

Electricity, workspace, etc.

Selling Price

Cost Breakdown

Materials$6.69
Labor$5.00
Overhead$0.50
Total COGS$12.19

Profit Analysis

Selling Price$24.00
COGS-$12.19
Profit per candle$11.81
Profit margin49.2%

⚠️ Decent margin, but tight for wholesale. Consider raising prices or reducing supply costs.

Suggested Prices

At 50% margin$24.37
At 60% margin$30.47
3x markup (wholesale)$36.56

Want to track this automatically?

WickSuite saves your recipes and calculates COGS in real-time as supply prices change.

Create Free Account

How to Calculate Candle COGS

Cost of Goods Sold (COGS) is the total cost to produce one candle. It includes every material that goes into the finished product, plus labor and overhead. Knowing your true COGS is essential for setting profitable prices.

What to Include in Candle COGS

  • Wax — Your primary material. Soy wax typically runs $2-4/lb, coconut blends $3-5/lb.
  • Fragrance oil — Usually 6-12% of wax weight. Premium fragrances cost $8-15 per 16oz.
  • Wick — $0.10-0.25 per wick depending on type and quantity purchased.
  • Container — Jars range from $1-5 each. Buying in bulk reduces costs significantly.
  • Labels, lids, packaging — Don't forget these. They add up to $0.50-2.00 per candle.
  • Labor — Your time has value. Even 15 minutes at $20/hr adds $5 per candle.
  • Overhead — Electricity, workspace rent, equipment depreciation.

What Margin Should I Aim For?

Most successful candle businesses target a 50-65% profit margin. This gives you room for wholesale pricing (typically 50% off retail), craft fair booth fees, shipping costs, and occasional discounts. If your margin is below 40%, you're likely underpricing.

Common Pricing Formulas

  • 2x markup: COGS × 2 = retail price (50% margin)
  • 3x markup: COGS × 3 = retail price (67% margin, recommended for wholesale)
  • Keystone pricing: Wholesale = COGS × 2, Retail = Wholesale × 2