How to Price a Cake: Cake Pricing Guide
Figuring out how to price a cake can feel weird at first, especially when you’re new and worried your quote will scare people away. But underpricing your cakes is one of the fastest ways to burn out, lose money, and resent the work you’re doing.
The simplest way to price a custom cake is to add up your ingredients, supplies, labor, overhead, and profit. That gives you a price based on what the cake actually costs you to make, not what a grocery store charges for a sheet cake.
When I sold custom cakes, this was one of the hardest things for me to learn. I undercharged for years because I compared my cakes to grocery store prices and didn’t fully value my time. This guide is here to help you avoid that mistake and build pricing that actually works for your business.
In this post, I’m breaking down how I think about cake pricing, how to pay yourself for your time, how to factor in packaging and delivery, and how to price cakes in a way that is sustainable. You can also download my cake pricing file for free here.
Basic Formula to Price a Cake
This is the formula I recommend using for custom cakes:
Cake Price = Ingredients + Non-Food Supplies + Labor + Overhead + Profit
You can keep profit built into your hourly rate if that feels simpler, but the important thing is that you account for it intentionally. Too many bakers only total up ingredients, then add a little extra, and hope it works out. That usually leads to underpricing.
Here’s what each part of the formula means:
Ingredients are the direct food costs for the cake, filling, frosting, ganache, sprinkles, food coloring, fruit, and anything else that gets used in that specific order.
Non-food supplies include cake boards, boxes, dowels, parchment, piping bags, support straws, cake drums, ribbons, toppers, and other order-specific materials.
Labor is the time you actively spend baking, filling, frosting, decorating, messaging the client, packaging, and finishing the cake. I only include active work time here, not passive time like chilling or cooling.
If you’re still figuring out how long certain cake styles take, posts like How to Frost a Cake Smoothly and Freezing Cake Layers can help you build a faster, more realistic workflow.
Overhead covers the bigger-picture costs of running your baking business, like electricity, mixers, pans, an edible printer, website fees, insurance, licensed kitchen fees, or other tools and business expenses.
Profit is what helps your business grow. It gives you room for taxes, mistakes, price increases, equipment replacement, and slower seasons (more on this in the section below).
For celebratory cakes (think birthdays, anniversaries, etc.), I think this formula works best. For wedding cakes, I usually think of pricing a bit differently and often start with the size of the cake and number of servings, then adjust based on design, setup, delivery, and complexity.
If you’re pricing a tiered or wedding cake, my How I Made My Own Wedding Cake post gives a better sense of the extra planning, structure, and setup work that usually needs to be built into the final quote.
Profit: Don’t Leave It Out
This is one of the biggest places where bakers accidentally underprice themselves.
A lot of people think that once they’ve covered ingredients and paid themselves for their time, they’re done. But if your cake price only covers your direct costs and labor, your business is not really building anything. It is just surviving order to order.
Profit is what gives your business breathing room. It helps cover unexpected expenses, ingredient price increases, damaged tools, last-minute fixes, taxes, and future investments. It also gives you money to put back into the business instead of constantly paying for everything out of pocket.
Some bakers prefer to keep profit separate in their pricing formula. Others build it into their hourly rate. I think either method can work, as long as you are honest about the final number and not skipping profit entirely.
If separating it out feels easier, you can add a flat amount or percentage after calculating your ingredients, supplies, labor, and overhead. If that feels too complicated, raise your hourly rate enough that your final quote includes room for actual profit.
The important thing is this: paying yourself for your time is not the same thing as building profit into your business.
Example: Pricing an 8-Inch Custom Cake
Here’s a simple example of what that formula might look like for an 8-inch custom buttercream cake:
- Ingredients: $24
- Non-food supplies (cake board, cake box, etc.): $11
- Labor: 4 hours at $25/hour = $100
- Overhead: $10
- Profit: $15
Total cake price: $160
That number can feel high when you first start pricing cakes this way, but this is exactly why so many bakers realize they’ve been undercharging. Once you actually account for everything, custom cake pricing looks very different from grocery store cake pricing.
One thing that helps a lot is costing out your go-to cake recipes first, like my Vanilla Layer Cake and Chocolate Cake Recipe, then reusing those numbers whenever a custom order comes in.
Frequently Asked Questions
Should profit be separate from labor?
It can be, but it doesn’t have to be. Some bakers list profit as its own line item, while others build it into their hourly rate. What matters most is that your final cake price leaves room for more than just ingredients and time.
How much should I pay myself per hour?
At a minimum, I think you should pay yourself minimum wage. As your skills, speed, and demand grow, your hourly rate should grow too. Making a custom cake is skilled work, and your pricing should reflect that.
How do I know if I’m underpricing my cakes?
If you’re constantly feeling resentful, barely making money, or are hearing “wow, that’s so cheap” more than “that’s out of my budget,” there’s a good chance you’re underpricing. Another red flag is realizing your ingredient and supply costs eat up most of the order total.
How should I price wedding cakes?
Wedding cakes are usually better priced by servings, then adjusted for design, sugar flowers, delivery, setup, florals, or other complex elements. They usually involve more planning, more structure, and more liability than a standard celebration cake.
If you’re pricing a larger cake, my How Much Cake Batter Per Pan Do I Need and How Much Buttercream Do I Need guides can help you estimate those costs more accurately.
Should I charge for delivery?
Yes, absolutely. Delivery takes time, gas, and wear on your car, and it is often one of the most stressful parts of the whole order. You can charge a flat fee within a certain radius or price it based on distance.
Should I charge for cake boards, boxes, dowels, and toppers?
Yes. Those are real costs tied to the order, and they should be built into your quote. Even small things add up quickly over time.
What if a customer provides the ingredients?
You should still charge for your labor, overhead, and any supplies you use. The customer covering ingredients does not make the cake free.
How often should I update my spreadsheet prices?
I recommend updating ingredient and supply prices in your cake pricing spreadsheet every couple of months, or sooner if costs in your area have changed a lot. Eggs, butter, chocolate, and fresh fruit can swing enough to affect your pricing.
Should I charge friends and family full price?
That’s a personal decision. Some bakers offer a discount, some only charge for ingredients, and some charge full price. The important thing is to decide your policy ahead of time so you are not making emotional decisions every time someone asks.
Should I require a deposit?
Yes, I think deposits are a smart idea, especially for custom orders. They help confirm the booking, protect your time, and reduce the risk of cancellations after you have turned away other orders.
What if people say my cakes are too expensive?
That will happen, and it does not automatically mean your prices are wrong. Not everyone is your customer. Custom cake clients are paying for your time, skill, design work, planning, and quality, not just flour, sugar, and eggs.
Let Me Know Your Thoughts!
If you have any additional tips on how to price a cake or any questions I didn’t answer, please leave a comment below 🙂
If you’re trying to grow the business side of your baking, you might also like these posts:
Hey Chels, I agree cake pricing is a job all in itself ! One thing though with this formula…for the cost of ingredients…say for your vanilla you pay $10… you cannot charge that customer $10 worth of that ingredient because they are not using your whole vanilla….so in all reality that would not be precise. They may only use only 4 tablespoons in total of your vanilla and the bottle holds 10. What I do is have a cake cost calculator on excel …program it to break your ingredients by unit….meaning how much you will be using in each cake order….this way is more accurate. The computer breaks it down… by pan size. You just have to put in the ingredients you use.
That’s exactly what she said actually
That is what she explained on the blog!!
@Jasmin Davis, hi jasmine did you make this calculator or buy it somewhere? Thank you!
@Jasmin Davis, How do you get this cake calculator on excel
@Jasmin Davis,
I noted she said to calculate unit price. She gave an example of a packet of sugar, having to count cups in it and then calculating how much a cup would cost then how much cups you need. That way you will not charge each customer a whole packet of sugar hey 🙂
Hi Chelsey
What an awesome post. I agree with everything you’ve said, especially about not competing with other bakers and not pricing things too cheap.??
We’ve actually created a free app that makes it super easy to calculate the price for your recipe. You just need to enter the ingredients package costs and they get proportioned automatically for your recipe.
The app is called CakeCost and you can find it at cakecost.net or in the app store.
@Jen, Thank you Jen I really appricate it!
Thanks for this clarification. Now the next part. How do you get those customers to pay those prices? My cake orders are stagnant and I’ve priced them out to what I think they should.
Just curious how this is working out for you?
I’m a firm believer in charging what it’s worth and allowing YOUR clientele to find you. People out there will realize your worth/cake worth and pay asking price for your product. Anyone who complains isn’t your clientele…. & that’s ok.
@Adrienne, thanks
I had someone tadt a cake I baked for free for my sister birthday the person claimed that liked it so much asked what would I charge
This was 4 layer homemade lemon cake with homemade lemon curd I’m talking fresh ingredients good quality ingredients I8 in round I said 65$ he said that’s to much for “just” a round cake
Oh and homemade cream cheese butter cream frosting.
I had that happen to me when someone ask me how much did a charge for a coconut cake and the person said that was to much. I just said ok and walk to way.
@Joan, That person was WRONG! That is an undercharged cake! I would say at least 80!
@Janet Krammin, l have decided that I would rather have fewer orders than be taken advantage of. I make high quality delicious cakes that have taken me 30 years to perfect and I’m always learning. You are worth it
@Joan, If I were buying that cake I’d say $100+ would be a good price. Even ‘just’ round cakes take a lot of time and energy. I made one for a fourth of July party and it took me 5 hours to make and decorate. And that was only 3 layers. But if your using quality ingredients that definitely boosts the price.
Thank you for this post. It is very helpful. Do you have any idea how to go about pricing royal icing decorated cookies? The issue for me is that I live in a small, dying town. There is a small town close to me that is a little better off. People around here will pay for cakes, though. I know of one person who decorates cookies, and her prices start at $20 per dozen and go up depending on difficulty level. I would like to make some extra money decorating and selling my cookies, but I don’t want to undercut this person’s prices, nor do I want to cost myself money. Can you give me any advice? I LOVE your website and cakes. I also follow you on youtube and you are so talented.
@Rachel Boothe,
Were you able to get any feedback from anyone online or elsewhere? Would love to know what you learned!
Thank you!
Ty so much for this much needed information. I want to further my cake business but I am down right scared! Lol I have been teaching myself and baking for about a year and a half and from home I’m loving it but I recently found out that in Mississippi I can not do this. Yes I’m heart broken so on to the next step! Ty again. You have been such an inspiration to me and I appreciate you!
You make very Awesome cakes from what I see on Facebook !!
Aw thank you!! 🙂
I’m so happy I finally got to read this post. I saw you posted it on IG forever ago and I finally have time to read it. I am you back in 2014 era but now. I constantly sell myself short and say I’m not as good as others etc. I told myself this year I will change this, hopefully I’ll stick to it. However I want to tell you THANK YOU!! The only receipe I use is your famous vanilla cake (i use almond flavor) and your buttercream receipe. Keep up the great work!
I feel you Jamie!! It can be so hard to shift your mindset, and it definitely doesn’t happen overnight. But I’m so happy you’re going to work on that this year 🙂
And that’s awesome to hear!! They really are some yummy recipes 🙂 Thank you for sharing, happy baking!
This is so incredibly helpful Chels! I have struggled to price my cakes mainly because a majority of my customers are friends/family and I feel bad for charging top price. But I know my cakes are as good quality as competitors in my area. I’ve always considered direct costs but it’s the labor that is the hard part to add in! Mainly I need to work on being proud of my quality work and charging prices that reflect that. Thanks for this I’m off to make my spreadsheet now!
I totally feel you Jessie! It’s especially hard when you’re humble, or don’t want to come across as being too proud about your work! I struggled with that for so long, but you are so right! And you deserve to get paid for all your time and hard work <3
Love hearing that, spreadsheets are the best!! 🙂 Hope you have a wonderful (and profitable) 2020!!
Hi ,love your blog, Instagram and YouTube work. My confusion is “how I calculate
the depreciation of those tools over their expected lifetime, and add them into your overhead.”how I should calculate this per cake that I made?
Hi Maria,
That part is a little harder, and is really only applicable for larger purchases like an oven! I would take the price, then divide it by the number of years you plan to use it. You then need to allocate that cost out over your cakes. To do that, I would look at how many cakes you made in the prior year, then use that as an estimate. For example, if you made 50 cakes last year, divide the yearly cost by 50 and add that to the price of each cake.
It’s a lot of work, so you really only want to do this with your biggest expenses.
Or if the amount of cakes you made last year isn’t an accurate benchmark for this year, you can take your weekly or monthly order schedule, and multiply that out for the current year. For example, if on average you make 4 cakes a month, you can assume you’ll make 48 in a year.
I hope that helps!
Thank you so much, as someone who just starting to build my homework it’s so helpful
No problem Shiran! I’m happy to hear you found it helpful 🙂 Best of luck with your cake business!!
Thank you for sharing, this is really helpful
No problem, I’m so happy you found this helpful!!
I bake as hobby and actually did this spreadsheet years ago because i wanted to know how much it was purely costing me in ingredients when people asked me to make them cakes. I then started with adding the overhead and adding a very small amount for my time. I am so glad I was doing it right the whole time 🙂
That’s awesome!! Sounds like you have a good head on your shoulders Kylie 🙂 It’s definitely such a smart way to track your expenses and price your baked goods properly!!
Just finished reading you post and am pleased that I had already created the spreadsheet for my wife. I took the real cost per ingredient, translated it to a per oz. and then to per gram value. I then valued the recipe and the buttercream separately using the actual amounts required. Now the hard part. If we use $15 per hour added to the ingredient cost for labor, we are still missing the markup. double the cake cost? triple? That is where I would like your input.
That’s awesome Mike!! You have one lucky wife 🙂
I don’t usually add in a separate markup, I think it makes sense to raise your hourly rate if you think you should be charging a higher price for each cake. Hope that helps, happy baking!
Hi Mike!
You may have read that restaurants use the food cost x3 equation for charging, but baking is not as straight forward as that, as Chelsweets posted. I think you’re referring to overhead (space and utilities, depreciating value of appliances, among other costs) when you’re saying “markup.” However you determine your figures, your equation should have at least the 3 parts, food cost + labor + overhead. In my equation, I use food cost + non-food consumables (gloves, parchment, piping bags, cake boxes, etc.) + labor + overhead.
I went to culinary school for cake design and costing was a poorly covered topic that we practically skated over in less than an hour! Even though I have a foundation and structure that I use, I am always curious to know what’s being shared around the community.
Hope this helps!
Wow, just looking at your explanation and I am more confused than ever, would it be weird to ask for your help? New baker here and very bad at maths and accounting .
Hi, I just started making cheesecakes and mini cheesecakes as a hobby. I had family and friends ask me to make them for different occasions. I am unsure on how to price the mini cheesecakes. I live in Chicago, IL. Hope you can help.
Hi Chelsea! I made your vanilla cake for a baby shower. Two tiers – bottom 8 inch and top 6 inch. It was a naked cake. I don’t sell cakes but I am starting to get people wanting to order so I am trying to figure out pricing. That cake took 7 hours. It took 10 hours total but actual work was 7 hours and 3 hours chilling. I am new so I feel like I am slower at making them. But I still took off a day of work to make the cake. How much would you charge for that specific cake? Just curious.
Hi Samantha,
How did you decorate it? did you add fresh flowers? If I sold my cakes, I’d charge at least $150 for that cake. Ingredients in manhattan are expensive though, and I do highly value my time! Hope that helps, happy baking!
Hi Chels !
I’ve been following you for awhile now and have recently quit my job ( Monday ) . I’ve wanted to focus on things that I love doing and cake baking / decorating is one of them . Your blog and post have been so helpful to me in my journey . And I’m glad you posted something about proving because that has been my biggest struggle . I’ve been getting more and more orders as the weeks go on and feel overwhelmed of inconsistent pricing I feel like I’ve been giving out . O need to start my excel sheet ASAP ! One thing I have a question on is if you require a deposit to place a cake order ? If so how much do you charge for a deposit ? Also , how much time in advance do you require for someone to place a cake order
Thanks Taylor !
Hi Taylor,
Congrats on your change in career!! I never required a deposit on my cakes, but I also usually had clients that were friends of friends or repeat customers. I never had anyone cancel on me, but it is definitely a good idea to get a deposit before making a cake. I’d probably set a percentage of the total price of cake, and use that as your deposit amount.
I started off requiring at least a week’s notice for cake orders, but eventually I was booked at least a month out so I started increasing the notice I needed. That part is totally up to you / can also be based on how busy you are.
Hope that helps, best of luck with your cake business!!
Hello! I love your recipes! I recently left my job to take to stay home and take care of my mom that has breast cancer. My plan is to start my own business from home. IM HORRIBLE with spreadsheets! Are you willing to share with me a template of your breakdown in pricing form? I would ever so so grateful!
Thank you,
Rene’s Bakes and Makes
Hi Renee,
I’ve actually been meaning to share my template for a while! I just need to figure out the best way to share it!! Stay tuned!
Have you figured out how to share the spreadsheet?
This was a very interesting article. I am new on this, but I have always loved baking. Until recently I made the decision to start doing it more to practice and get better at it. My idea is to have certain type of cakes and cupcakes, but I have no idea how to start as a business, best way to market and obviously to price it. It’s overwhelming!
Hey Chels- Your website is so helpful. i am following this guide and making my own pricing spreadsheet (finally!). Do you consider sprinkles and Americolor gel etc to be indirect costs or cost of ingredients and then how do you break that pricing down- per oz or tsp? thank you for all your posts!
Np, I’m so happy you found it helpful Kristin!
I consider sprinkles and food coloring direct costs, but it is a bit of a guestimate pricing them out. I measure sprinkles by the 1/4 cup, and my gel food coloring by the 1/2 tsp. Hope that helps, happy baking!
Hi Chels!
Thank you for sharing this information.I have been absolutely struggling with how to properly price my cakes so it has not been profitable for me. So it has been frustrating especially as I have been wanting to turn my craft into a profitable at home business. Are you buy chance willing to share your template? I have mine arranged with the costs of ingredients similar to the picture you have shared.
Hi Shakira,
I’m working on a way to share it seamlessly on my site, but I’ve had some technical difficulties :/ If you email me at chelsweets.com and ask for it I’m happy to send it to you that way!
@Chelsweets, Hi There! Is the cost analysis still something you can share? I have created mine, but I am having a killer time trying to link the ingredients to recipes on my other tabs.
Thanks,
Kim
@Kimberly, I’m sorry I didn’t mean for this to go to you. I meant for it to go to Chelsweet. I would like to get the cost analysis sheet, too.
Hi Kim,
Just emailed it to you. Happy baking!
Hi Chelsea, thank you so much for this information is very helpful. I am self thought baker and also attending Baking and Pastry school. I recently started selling my cakes from home for about almost 2 months now. I recently been selling decorated cakes with buttercream and filling. A 3 layer 6 inch cake for $25 and a 2 layer 8 in for $30 only based on the ingredients cost and charged myself the minimum wage which is $10 per hour in New Jersey for 2.5 hours. It actually takes longer, but I figured since I just started out I don’t want be too expensive. Do you think I should charge more for my cakes? Am I under pricing my cakes? I would really appreciate your thought, thank you!
Hi Ericka,
That definitely seems too cheap! I don’t know what your decorating skills are like, but that’s the same price as a grocery store! I think you need to charge more!!
Hi Chelsea, I currently bake cakes and pastries. My clients are mostly students or faculty as I’m in college,how do you think I should price my cakes . An example of my current price is $50 for a 3 layer 7” cake.
Hi Nami,
Like I explain in this post, the price you charge can vary a lot based on your skill level, how long it takes you to make each cake, the flavors of cakes you’re making / cost of ingredients, etc.! I recommend using the formula I share to figure out what the right price for your cakes it <3
Hi Chelsea
I’m a home baker and I Love Love following you, and trying some of your recipes they are delicious and you make the best tutorials. Thank you for breaking down the pricing. I watched your video a year ago when thinking about transitioning to a home baker and it helped me because prior to, I was basically giving away cakes $25 or $30 for pound and layer cakes ?????. That barely paid for ingredients. I am now in the process of making an excel sheet. I know this will help me properly price my cakes as I have been doing a lot of estimating with your formula, but I have left out any over head, packaging and equipment cost. Hopefully this will help me get on track. Keep enjoying what you do my fellow baking sister?
Hi Chelsweets
I’m also a self-taught patisserie. I want to thank you so much for this article. I can’t begin to explain how much this has helped me, how much this has been an eye-opener. Everything you said was on point, I’m currently going through the exact exact situation. I always feel so guilty pricing my cakes and pastries and Chelsweets, you know what, I’m so good at it. I take great pride in presentation and the taste so I deserve to be paid. On two occasions, friends have asked me to cater to a wedding of 100 people. I was flattered that they had such confidence in me but soooooooo insulted to find out they wanted it for free “a wedding gift”. I just realize I’ve been watching your YouTube channel all this time lol
I’m also a self-taught patisserie. I want to thank you so much for this article. I can’t begin to explain how much this has helped me, how much this has been an eye-opener. Everything you said was on point, I’m currently going through the exact exact situation. I always feel so guilty pricing my cakes and pastries and Chelsweets, you know what, I’m so good at it. I take great pride in presentation and the taste so I deserve to be paid. On two occasions, friends have asked me to cater to a wedding of 100 people. I was flattered that they had such confidence in me but soooooooo insulted to find out they wanted it for free “a wedding gift”. I just realize I’ve been watching your YouTube channel all this time lol
@Robin Griffin, I am in a situation where my sister offered to make a 10 inch naked cake with strawberries and white whipped layer and 200 parfaits of the same. She said it would be her gift including the little cups & spoons for it. I offered to buy the cups and for her to let me know if she needs help with costs or making. She insisted it would all be her gift. The morning of the wedding she text me that it cost her $275 to make and she was going to buy a gift for $100 so that would be taken off the cost and if that works for me. (My daughter was going to make the cake for her sister but we went this route because she offered) How exactly is this fair to me? Now I am trying to figure out how not to start a conflict about it and it’s not as much about the money as it is the principal of insisting the whole thing would be her wedding gift.
Thanks for this! Especially the clientele part. I recently dealt with someone who kept grinding me down and eventually got me to cut my initial quote in half. Don’t even know how she did it. I accepted and it was so frustrating I felt like a sucker. Not the kind of clientele I want! Will definitely start refering them elsewhere when this starts to happen. I also have always been offering free delivery. This all just spoke to me and I can’t wait to stop ripping myself off. Thanks!!!
How Do you pay yourself from the sale of your cakes??
Is it only your hourly wage??
A percentage of your sale price??
What goes back into the business??
Can you give an example for a $100 cake, please??
@Deanna White,
I asked the same. Where is the profit?
Hi Monika and Deanna,
Sure! Let’s say you sell a custom cake for $100. Here’s how you might break that down:
1. Cost of Ingredients + Supplies: Let’s say this cake costs $25 to make (ingredients, cake boards, boxes, etc.).
2. Time/Labor: If you spent 4 hours on it and you want to pay yourself $20/hour ? that’s $80 in labor. (don’t worry—we’ll reconcile that in a sec!)
3. Overhead: This includes electricity, water, equipment wear, website, marketing, etc. You might set aside 10% of the sale, so $10 here.
4. Profit / Business Savings: Set aside at least 10% of your price (so another $10) as profit, for savings, taxes, or future investments.
So all together: $25 (costs) + $10 (overhead) + $10 (profit) = $45 in non-labor expenses
That leaves $55 to pay yourself for labor, which is about $13.75/hour in this case. If you wanted to earn $20/hour, you’d either need to raise your price or find ways to streamline your time. Hope that helps, let me know if you have any other questions!
Definitely worth the read ? thank you for sharing ?
Sorry for the question marks, emojis don’t show directly. But I enjoyed the read!
My 16 year old daughter wanted yo start selli g baked goods for the summer. We since then escaladed to desert tables (only a few). We both bake but i take on the lead on decorating and settings. The pricing part was hard for us bc she has some culinary back ground from high school classe and i just love to bake and make thi gs look pretty. (I still cant get the right consistency on the frostings though, too hot in alvin tx) this will help us get atleast some profut while i get the decorating part down.
Hi Maria, you might want to try italian merengue as a frosting. It tastes awesome and get stand hot weather.
Thanks so much for this information. I am just starting to sell simple cakes right now and I feel so clueless on how to start pricing. Can you share your spreadsheet or a template to help? Any help is much appreciated!
Thank you for sharing this. I was looking at the your picture of you delivering your cake. Where did you make your custom boxes with your logo on it? I‘ve been trying to do that for a while now? Thank you again
I’ve been working on a similar spreadsheet. I wanted to keep everything in ounces for my pricing. Now I’m on to the smaller quantities and I am needing to convert a dry good from tablespoons. The package comes in ounces (weight) but if I convert from tablespoons, it will be fluid ounces (volume). What do you recommend? I could do it your way, keeping the original units, but it’s not clear to me how you determine how many tablespoons of oats, for example, are in each 20 ounce package. Could you explain that a little further? Thanks!
Hello Chels,
My name is Ashley friends and family call me Bambina hence where the name for my baking business came about. I am also a self taught baker. I am also a busy mom of four. My business name is Bambina’s Sweets on IG. I have been following for awhile a couple years since I open my business page I browse around. I started looking to make friends in the cake community. I love to learn from other bakers and ask questions. So I never compete with my fellow bakers well we call each other cake cousins. One of them send this link about pricing for cakes. Since I feel i under price myself with the cake because im still a intermediate baker lol. I want to know do you have a sample cake pricing sheet I can download for excel or would just have to start a new one. I love watching how you make baking so easy but the simplicity is the wow. You put love in your cakes the same I do with mines which is why my customers come back. I do a variety of sweets.. strawberry cheesecake is a number one fav i feel i may need to price again. I hope one day you meet you I live in nyc. I’m hoping to master having sharp edges with my buttercream after the crumb coat. I will continue to watch your videos and learn more everyday from you and others. So thank you so much. I appreciate all your info. One of your loyal fans. Ashley aka Bambina’s Sweets.
Hello,
I am working on pricing out different flavors for my vegan cheesecake business and I am required to work in a licensed kitchen in order to do so. The Kitchen rate is $25 per hour and I have to pay about $76 per month for dry, freezer, and refrigerated storage. It takes me about 2 hours or so from start to finish to make one vegan cheesecake. Should I be adding the kitchen rate (around $50) to the price of one cheesecake and the fixed storage fee costs? How should the baking equipment I purchase be added to the price?
Thanks.
Hi, I recently started down the same path as you ChelSweets, by creating my business during the pandemic with the ultimate goal of not returning to my business analyst role. I feel like I have a good concept for my home bakery but am struggling with 1) getting the word out there and 2) getting real customers, outside of friends and family. Do you have any suggestions for this situation and what to sell to get people to come in for the custom cakes? Thanks!
I am terrible with spreadsheets! Are you willing to share with me a template of your breakdown in pricing form? If possible including things like mixer, new oven, electricity and so on.
Thank you so much .
Tobi
Hello, thank you very much for an informative video, but i have a doubt, how to add indirect cost to the cake.
If I have spent 50,000 on equipments so how to add dis in the cake cost??
Hi Chelsea, I’m praying you or anyone can help me with my question: How much should I charge for my grandmother’s homemade cake and icing??? My GMom & mom have both passed away making me the sole person that knows how to make this cake & icing. I am almost 51 years old and my mother has been making it for me and my siblings our whole lives. Neither of my sisters or my brother know how to make this cake and as far as I understand no one else has this specific recipe. I am asked constantly by family and friends and now other people to make them this cake I’ve never sold it but now that I’m not working I’m wondering what I should sell it for. Please any help would be greatly appreciated.
Thank you so much, Barb
Hi Chelsea,
How do you get your custom cake boxes made? And are there any online shops that does these for a considerably less amount? I live in Chicago, just starting with my home bakery. So trying to get all details.
Thanks
Ramya.T.S
hey chelsea, how do you determine your profit margin? do you keep it at 100% or do you bump it up? i seem seem to struggle with that.
Hi, thank you for this! I literally stumbled across your page because I googled how to price cakes. I live in NY as well; I am a certified pastry cook, and a stay at home mom of 5. I recently started a baking business from home and have been uneasy about charging top dollar for my goods. I love to bake and give things away. Lol I’m slowly learning to be bold and raise my prices with no confidence! My cakes are professional but I lacked self confidence. I read this article and it really encouraged me to continue charging top dollar, bc my time is precious, especially if I’m taking time away from my children. Thanks for all the tips!;) check out my Ig @sweettreatsbyAntonette
Hi Chelsea, thank you so much for your encouraging article! I am just starting off and am wondering how to find those clients who are ready to pay for my cakes. Even at minimum wage rates without including the depreciation costs of my equipments, I am not finding customers. What is the best way to market without spending a lot of money?
Hi, Chelsea! Thank you so much for this. I find your blog really easy to understand and it helps me a lot. I’d like to know if it’s possible to get a copy of your spreadsheet template. It would really help me understand the costing and ingredients tracker. Thank you so much!
Hi, thank you for all your information I have made a spreadsheet too but having trouble linking the recipe to it. Is there any way you could share your formula or at least give me an idea of what I need so I can figure it out. I’m not very good with excel. Just basics unfortunately.
This was so helpful! I’m wondering if you can advise how to work out how many servings are in a container though? For example how would I work out how many cups of flour are in a single container? Or how many teaspoons are in one salt container?
Thanks
Thank you for explaining but can you show tell me how to actually set up a spreadsheet with all the step by step equations that are needed in each cell.
Wow… im from the Philippines and its help alot for me as beginner thank you so much..each guide is perfect and relatable…godbless
You are amazing with your detail. I am getting ready to make a spreadsheet for a cheesecake recipe I have. Thanks so much for all of your advice!!!!
I have enjoyed reading this article about pricing cakes. I am thinking about making cakes to sell. But only on a small scale. I will be specializing in different flavors of pound cakes and 3 layer cakes, about 8 and one half inches. What do you suggest for the price of each? I have prices in mind. I just want to hear your take on it. My cakes will be part cake mix plus added sugar, flour, 4 eggs, 1 cup oil, pudding mix, vanilla flavor and water. Thank you in advance for your response.
Geraldine Smith
Thank you this was so helpful somebody was pricing my 6inch cake buttercream for 5000naira thankGod I saw your post
Thank very much for this valuable info. This help my long time problem in pricing my cakes. i owe you one…. THANK YOU …
Can you tell me what food color to use to get a true blue color in buttercream frosting or ganache?
Thanks
For my friends and family, I will make them a cake for free, as long as I get to design it. Otherwise, they can pay full price. They all love that idea and use it to their advantage 🙂
Hi! Loved the article. I’ve been baking for years and I’ve had some great clients who’ve been willing to pay good money but I still think I could better adjust my pricing. I’d love to have access to your excel sheet if it’s possible.
Hello And thank you for the short lesson I need that . My question is for the overhead calculation, do you do that calculation like 20% or 30 % of the total at the end or how do you do it?
Hi Chels!!!!
I love everything that you said and thank you for the explanation I agree with everything that you said but would you please do the explanation with example of course if you can it just that I’m starting my cake business and I’m really struggle with that I’m stuck with pricing my cakes and everything that you said I heard other people saying the same thing but they never say anything with example I just need example to know what to do or how to understand better thank you…
This has been so helpful. Thank you so much.
@Jameson Zaake,
Hi Chels, Thank you for the very valuable information. After reading through all of the comments I see that a reader mentioned needing help with the spreadsheet. Were you ever able to find a way to share that spreadsheet template? That would be so very helpful.
Thanks again,
Pam
Thank you. I’m about to open my own at home cake and cupcake business and this article has been so amazing. I’d love to be able to stay in touch! Thank you again for sharing your experience, sincerely Miss Mabee
MY cakes are taller than most. 4 layers, essentially double the servings. How do I professionally tell my customers why I have upped my prices? I am not good with saying it grammatically correct. Someone help me?
hi Chelwets, my name is Leslie-ann. I am glad I encountered your site and very thankful for your advice and information on pricing cakes. I cannot thank you enough. Thank you.
Grateful Leslie-ann
Cakes pricing
Thanks for this wonderful info! However, Im confused to add in the INDIRECT COST. If the machine cost me $200 and I expect to use it for 2years, how could I calculate the indirect cost for this?
Hello I have a home cake business but im having such a hard time to make my cake prices I always think that is to high or I put to low so I can get a order and that is driving me crazy I don’t know what to do anymore I’m in this business for 2 years and still very slow can you please help me
I really appreciate
Veronica
Hi Chelsea
These tips have been extremely valuable for me and yes I think I’ve covered most of the tips in my business except for a few shortfalls here and there. You’ve generally covered all aspects of running your own baking business.
We as bakers truly undervalue our own worth.
Thank you for sharing these valuable tips
thanks for sharing! Very helpful 🙂
Thank you somkuch for this article. Iam a home based business baker based in Zimbabwe. All the tips in your article are so helpful and I can relate to all of what you said. I was telling one of my baking students yesterday to not look down upon the most minimal skill level she is at.. one still has to charge the bit of time, effort and skill even as a beginner. Also checking the market prices constantly is important. Compare your prices to fellow bakers serving your area as a guide, I noticed it helps too. You are right about underpricing and affecting the cake business for other bakers too. In short, this was very helpful. Thank you again 🙂
Hello Chels. I am a Cake Artist in the UK. My name is MarinaI just found your website. I love it. I have been baking and decorating cakes since 2004. I like you term cake artist. My title was Cake Designer & Decorator. Can I adopt Cake Artist?
Your website is great. Thank you so much.
You have explained it so clearly
Thanks a lot
Can you send me a blank spreadsheet with all the categories
Hey Chels,
When making cakes with fresh fruit how do you price the qty of fruit of the cake. any help would be appreciated.
thanks
Great Information I am new and about to start this journey .
My birthday is today 12 Dec /n hubby bought me a kitchen made stand mixer . Do you have this spreadsheet she already made can I get a copy please and i will add and update with my prices . Plz & ty if this spreadsheet is available on Etsy plz lmk or send me Cashapp and I can pay you for it .
Plz & ty Shamika new Baker
Hi chelsweets
Can u share the price calculator in excel?
This is extremely insightful. Thank you for sharing
I used your ingredient Calculator and printed off the cost list so I can refer back to it! Thank you for that suggestion, my biggest struggle is how to charge for my time. Do I just charge Flat rates for a cake? Do i go off of actual time spent? It’s hard to know how much time since we don’t spend necessarily straight time working on cakes. Any advice on this would help.
Hello. I have been baking for years, however, my challenge always is what/how to charge to just decorate a cake. I received a request for a quote to decorate initially a 4 tiered cake in fondant I just discovered a few minutes ago rhe sizes were changed and are now 12, 10 & 8. I will see if I can send the pic
THANK YOU, THANK YOU, THANK YOU!!! This post has been super helpful! I started a baking business on the side a few years ago but haven’t really pushed myself. I love baking cakes and find it so therapeutic, and it’s been a great way to express my creativity. I struggled with finding the right pricing but I love how you said “you should be too expensive for some people”….game changer right there, as well as looking at other bakers not as competition but fellow artists.
Very well said and explained! I learned a lot about deducting ingredients and pricing!
Thank you
Thanks so much it help me alot
This was so helpful! I have already started a spreadsheet, but would feel bad when someone told me “that is out of my budget”. I feel so much better now! I had someone ask for a cake to feed $30 people but cringed when I quoted them $120.
very on point! I definitely agree on everything you said in this post. I, myself, experienced those kinds of things too sadly. But I just step up, and being honest and transparent in every baking journey I made and about to partake. And respect each and every individual regardless. Thank you, Chelsweets:)
This helped a ton thanks for the breakdown
Hai in need of a durable mixed
Wonderful guidelines ….. I just need a durable mixed
Would you mind sharing a copy of your spreadsheet?
This has been soooo unbelievably helpful. Thank you so much for this!!
Hi Chelsea,
Thank you for your tips on this.
My question is how do you factor in e.g. ordering a cake topper and a personalised tool on Etsy? Do you charge the client for both the topper and the delivery? Also what about the instance that you have multiple items in an online order for different cake projects. Would you recommend separating each order so that you can charge the clients according to what is needed for their cakes?
Lastly, how do you calculate the depreciation of tools, e.g. mixer. I understand your explanation but I’m unable to apply this practically. Please can you break this down and possibly give me a mathematical example of how you do yours so that I can understand better.
Thank you so much, Bella
Hello, I’m a fairly new baker and have only been baking for about 8 months now. I’ve been following and watching your YouTube channel and I have to say, that I’m glad I found you. Your videos are pretty easy to follow and with this pricing guide I totally understand how to calculate a decent price for profit. Thank you. Keep up the good work. Your fellow baker,
Amber
I am so happy to hear that Amber!! It’s so important to know your worth as a baker 🙂 Thank you for sharing!!
This is very intelligent and helpful. I just came across this while trying to make a new price list for my custom cakes . Thank you.
So happy you found it helpful Glory 🙂
This is so helpful! would you be willing to share the pricing excell? Im not good with creating spreadsheets at all!
Thanks so much for explaining how a cake gets a price. My partner’s birthday is coming up and I want to get them a cake to celebrate. Knowing why and how cakes are priced will definitely help my expectations be realistic. https://heriots.co.uk/collections
Hi! Thanks for the tips! Is there a download for the excel pricing chart? If so, I can’t seem to find it. Thanks so much!
Hi Crystal,
Just emailed you the file!! Hope it helps 🙂
Is there a copy of this spreadsheet or is this a tutorial on how you can make your own? Thank you
Hi Jen,
Just emailed it to you! Hope that helps, happy baking! 🙂
Hi Chelsey!
Did you share you excel spreadsheet somewhere, or can you share a tutorial on how to create one? I’m lost in excel.
Just emailed it to you!! I really need to figure out how to make a downloadable version on here, but until then I’ll just have to send it via email 🙂
Hi Chelsweet! Thank you so much for creating this can you share the excel spreadsheet with me as well please.
Hi Volanda,
For sure! Just sent you the email. Happy baking!
I live in rural NSW, Australia, and everything you suggest rings perfectly true here as well. I have a 50, 100, 150km radius delivery charge, and most people are happy to pay, rather than having to transport a cake themselves. It is quite literally the most stressful, thankless job ever!
Car cakes are my least favourite thing to do, so l try to price them so high nobody will ever order one…but they still do! At least l know l am getting paid well for my time ?.
Hi Dagmar,
That makes so much sense, I love that! And I totally agree, cake delivery is the most stressful thing ever!!!
This helped me alot!! Im super nee at this and i am charging enough and am always nervous about charging to much.
So happy to hear that Ashley!! 🙂 Pricing is such a struggle, especially in the beginning. I feel ya!
How can I charge like pieces of vanilla cake for one kg
I have a question about that say that my friend brought all the ingredients and stuff with her money but brought it to me for me to make the cake she wanted, how much should I charge for the cake with my time doing it?
Hi Alexa,
Interesting question! Based on the formula (Labor: (hours of estimated work x your hourly rate) + Cost of Ingredients + Overhead) you should be charging your hourly rate x how many hours it takes to make the cake, plus any potential overhead.
The rate you charge for your time is totally up to you. You can also adjust your rate to take your experience and skills into account. You might start out at a lower rate, but as you develop your abilities over time, you can increase your rate. At a bare minimum I’d say charge *at least* minimum wage!! Think about if you worked at a bakery, you’d get paid a wage per hour.
Hope that helps, happy baking!
Hello!
Accountant here and id love to know if you have this file saved so I don’t have to recreate it?
Hi Jessica,
Love that! Shoot me an email at hello@chelsweets.com and I’ll email it to you 🙂
Thank you for this insight! this has been uber helpful in my personal baking journey, but I do have one question. With price changes on some ingredients like eggs, milk really any produce, is there any easier way to take that into account besides changing the number on the spread sheet every time a price changes? Hope that wasn’t a confusing question!
So happy to hear you found this helpful Chloe! Sadly there isn’t an easier way to take price changes into account. I’d recommend updating the prices in your spreadsheet every couple of months to make sure it’s up to date.
Hi, my boss asked for an 8-inch 2 layer yellow cake with raspberry filling and lemon buttercream icing with roses. He said don’t give him a break, price it like I would for anyone. I used fresh raspberries to make the filling. I thought of doing the 3x the ingredients (roughly $20) plus $20 but it seems high. Any suggestions? He is a professional chef but doesn’t like doing cakes, hence the offer to me.
Hi Rosemary,
I’d recommend following the formula in this post 🙂 Price out the ingredients and then factor in your time and overhead to make the cake!
Excellent Information, thanks for taking the time to share! Very useful!!
Aw thank you!! 🙂
Thank you so much for this post, it is super helpful!
Hi Rebecca,
I’m so happy to hear your found this post helpful 🙂 Thank you for sharing!!
This was very helpful to me as I’m just starting out on my baking journey. I appreciate you emphasizing on paying ourself what you worth. That’s one of the biggest mistakes I’ve made by not considering how valuable my time is. I will definitely put in the time to design a spreadsheet for my cakes because I know it will help me in the long run. I will also apply this to my catering of savory food. Once again thanks for sharing your knowledge and expertise on cake pricing.
Peace & Blessings,
Tammy
I’m so happy you found this helpful Tammy!! Thank you for sharing 🙂
Hello. Could you send me a copy of the spreadsheet, and is there an updated version with 2023 costs?
I am in the Atlanta area
Hi Ely,
Just sent it! Sadly you’ll have to populate the prices yourself, as they vary a ton from city to city, even store to store. Hope that helps, happy baking!
Hello , Would you mind sending me a copy of your cake pricing spreadsheet. I would like to use it as I’m not that organized and it would greatly help me . I sent a carrot cake to my wife’s work with her that I made . The people loved it so one of them wanted to order one . I’m not sure how to price it that’s why I’m here . I like you in the beginning have under sold myself and lost money. So I would like to start getting it right . Thank you for your article on pricing. It was very good.
For sure!! Just sent you the email Ed 🙂 Hope that helps, happy baking!!
I love this! Do you still have a copy of the spreadsheet that you are willing to share? I would love to see it! Thank you!
Just emailed it to you 🙂 Happy baking Tracy!!
This is one of the informative article that I have read this year, it will help me a lot thankyou
So happy to hear you found it helpful Lydia 🙂 Happy baking!
Thanks so much I learnt a lot and I really believe it will help me grow my cake business better this year?God bless you ?
I’m so happy to hear that Amanda 🙂 Thank you for sharing!
Great article. Can you make me a spread sheet I can use for each of the cakes I offer. What would your charge be?
Thanks,
Theresa
Hi Theresa,
Thanks!! No charge for the spreadsheet, I just emailed it to you! Lots of people helped me out on my baking journey, so I like to pay it forward to other bakers 🙂 Hope that helps, happy baking!
I just got started in baking. I’m passionate about this stuff and I am color blind and have no gift for decorating whatsoever. I am having a ball. Having said, I realized right away we had to price in the overhead and the way I did that was to add up all the monthly bills of the house and divide it by 730 (hours per month). When I priced up stuff I simply added that hourly charge to my baking labor hourly rate and had the “fully baked” cost of delivery.
I hope this helps. Yeah, I did a spreadsheet on it as well.
What I found is that by the time I added a very modest hourly rate for my time (only $15/hour), the end-result was one of being priced above market significantly. Still working on that.
Nice article. Well written. Great approach. Thank you for it all.
Hi Clint,
Thank you for sharing, and I’m so happy to hear you found this post helpful 🙂
Did you share a template of your Excel doc? I’m new to Excel and still trying to figure out all of the formulas. If you didn’t, is that something you would be willing to do?
Hi Alise,
For sure! Just sent you an email with the template 🙂 Happy baking!
Hi Chels,
Thanks so much for providing all this invaluable information.
When pricing your cakes do you include a profit or do you consider labour (time) profit?
When pricing wedding cakes per serving, do you include any other expenses?
Thanks!
Wonderful insights . Kindly send me the costing spreadsheet for the bakery.
Just sent it 🙂 Hope it helps, happy baking Vincent!
Hi, my name is Monika. I’m a pastry chef/ Baker in Ireland. I’m also fight with the price of my cakes.
I notice, you don’t mention the “profit” in your price-setting.
I also have an Excel sheet like yours (a financial specialist did it) but I have
1. Cost of ingredients
2. Energy and other costs
3. Time (hourly rate)
4. Profit
But I noticed if I count the time and profit as well, the cake price will be very high. In that time I lost the customer.
So, do we have to count only the hourly rate? What do you think of this?
Thank you so much for your reply ?
Monika
Hi Monika,
I kind of think of profit as being built into the hourly rate, but to be honest it is challenging to pay yourself for your time, make a profit, and cover your cost of ingredients. A lot of it also comes down to the market you’re serving/where you live, and the types of cakes you make. It can take a while to find the sweet spot of charging the right price to cover all these things and pricing your cakes at level which your customers can afford/want to pay. Hopefully as time goes on you’ll be able to find a price that works best for you <3 Hope that helps, happy baking!
I would love a copy of your spreadsheet!
Just sent it!! Hope that helps, happy baking!
I love, love, love this article! She tells it straight. There are so many things I didn’t know like charging for the cake boxes, utilities, and I forgot about delivery! I would love to reach out to my fellow bakers in my community I just don’t know how. I will download your spreadsheet and use it religiously! You are so right about the people who shop around for a cheap cake not being the type of clients you want. Thank you so much for the information!
Hi Valinda,
I’m so glad this article resonated with you!! It means so much to hear that it was helpful and eye-opening. Reaching out to fellow bakers can feel a little intimidating at first, but you’d be surprised how many are open to connecting. Try joining local Facebook baking groups, attending community markets, or even just introducing yourself at a local bakery! Sharing tips and experiences can be so empowering. And yay for using the spreadsheet, I hope it makes pricing feel way more doable!
I am not able to download the xl file can any one share it to me
Hi Esther,
Just emailed it!! Hope that helps, happy baking!
Hello, can you send me a copy of the spreadsheet please? I’m not able to open it
Hi Destinee,
For sure! I just emailed you the spreadsheet, happy baking!