Food Business Pricing

Home Bakery Revenue Calculator: What Drops Actually Earn

By Maya Alvarez··7 min read
Home Bakery Revenue Calculator: What Drops Actually Earn — Food Business Pricing

You can run the math in your head. Gross per drop = price × units sold. Net = gross × (1 - food cost % - packaging % - platform %). That's it.

The simple formula

Gross revenue per drop = average order value × number of orders. Net profit per drop ≈ gross × 0.55 (after 32% food cost, 5% packaging, 8% platform + payment fees).

Worked example: 25 sourdough loaves at $14

Gross: $350. Net at 55% margin: $192. One drop per week, 50 weeks: $9,600 net annually.

Worked example: 30 cookie boxes at $30

Gross: $900. Net: $495. Weekly: $24,750/year net side income.

Capacity is the hidden ceiling

A solo home baker tops out around 30–50 production hours per week before quality drops.

Frequently asked questions

About Maya Alvarez

Maya covers cottage food laws, tamale businesses, and farmers market selling. She has spent 6+ years interviewing home food entrepreneurs across the US.

Related reading

More popular resources

Browse all resources →