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How to price a custom cake so decorating hours get paid

Ingredients are a tenth of the price. The hours with the piping bag are the rest, and most bakers give them away.

3 minute readUpdated September 28, 2026

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Price a cake

A three-tier fondant cake has forty dollars of ingredients and seven hours of skilled work in it. Bakers who price from the ingredients end up earning less than minimum wage on their best work. Price from the hours.

The formula

Labour = (baking + decorating hours) × the rate you need. Direct cost = ingredients + labour + box, board and delivery. Cost = direct × (1 + overhead share). Price = cost × (1 + profit). Per serving = price ÷ servings.

What a good number looks like

Customer's price at or above yours

Take the order and put the deposit in the calendar.

Between cost and your price

It pays you but not the business. Fine occasionally, not as a rule.

Under cost

You would pay to make this cake. Offer a simpler design instead.

What to do about it

  • Time three cakes with a phone stopwatch. Decorating always takes longer than you think.
  • Set an hourly rate that is at least what a skilled decorator would cost you to hire.
  • Charge for delivery. Driving a cake across town is an hour of your life.

Now do it with your numbers.

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Price a cake