How Real Price works
Last updated: August 15, 2026
No AI — a fixed formula, every time
PricesLoom does not use artificial intelligence or a language model to calculate your Real Price. Every number comes from the same fixed formula applied to the numbers you enter — materials cost, your time, your hourly rate, your growth margin, and the fee structure of the platform you sell on. Run the same inputs twice and you'll get the exact same price, every time.
What goes into the calculation
- Materials — what you tell us it costs to make one unit.
- Your time — the minutes you spent, valued at your hourly rate.
- Platform fees — the published fee structure of Etsy, Amazon Handmade, Square, Shopify, or the channel you selected.
- Your growth margin — the safety cushion you chose (1.2x-2x) on top of your break-even cost.
It's only as accurate as what you enter
PricesLoom does the math — it doesn't know your actual material costs or how long something really took unless you tell it. Double-check your inputs, especially platform fee percentages, which platforms change from time to time.
Not financial or tax advice
Real Price is a calculation tool, not financial, tax, or accounting advice. See our Terms & Conditions for details.