How to price your cakes in the UK (without undercharging)
Most home bakers price by looking at what others charge, then knocking a bit off. The problem is you never see their costs, so you copy their mistakes too. Pricing properly takes four numbers and one formula.
1. Add up the true cost of the batch
- Ingredients: what you actually used, not the whole bag.
- Packaging: boxes, boards, labels and ribbon, per item.
- Energy: an oven running for an hour costs real money. Put a figure on it.
- Your time: pick an hourly rate you would accept from an employer. Minimum wage is the floor, not the target.
2. Divide by how many it makes
That gives your cost per item. If a tray of 12 brownies costs £21.80 all in, each one costs you £1.82 before you make a penny.
3. Add your margin the right way
Price = cost ÷ (1 − margin). For a 30% margin that is £1.82 ÷ 0.7 = £2.60. Adding 30% on top (£2.37) is a common mistake that leaves you short.
4. Round to a clean price
Round up to the nearest 5p or 10p. Customers rarely notice, and it adds up across a year.
Check it on every bake
Ingredient prices move all the time. Re-check your costs whenever butter or eggs go up, and keep a list of every recipe with its cost and price side by side.
Do all of this in one place
The Sold Out Bakes toolkit prices every bake, writes your label ingredients with allergens in order, and gives you the food safety records your council expects.
Get the toolkit · £50Guidance to help you stay organised, not legal advice. Always check the latest rules with your local council.