The Chemicals to make propellant are pretty inexpensive...most of the cost in making your own propellant comes at start-up when you have the initial outlay for all the equipment... mixer, scales, "utensils", etc...
Even at the outrageous cost of $10/lb for AP, if you JUST calculate the cost of the chemicals, you can make a K motor for under $20... an M motor for around $50...
If you get involved with a club or group, and get in on deals, you can make an average APCP propellant, like AT Blue Thunder, or White Lightning for around $5-$7 per pound. The reason the manufacturers charge so much, is in order to BE a manufacturer, there are some severe costs in starting up. You have to obtain your LEMP (Low Explosive Manufacturers Permit), a facility to manufacture, Commercial sized equipment, DOT EX numbers, while not specifically expensive, the cost to have the propellant test by the lab that characterizes it for the DOT can be VERY expensive... several thousand dollars PER RECIPE!!! Then you have to by the boxes and anti-static bags specified by DOT, etc... it's a BIG expense.
However, the cost of commercial motors and just the simple fact that a lot of people can make BETTER propellant than you can buy from a manufacturer has driven people into homebrewing. It adds an entirely new facet, and pride to flying rockets when YOU made the motor!! I also make my own hardware, so with the exception of the electronics, I'm pretty much doing it all, and when I have a successful flight, it's VERY satisfying!
Now... If you want to experiment with your own motors, and don't want the expense of several hundred dollars to play with APCP concoctions, consider Sorbitol/Kno3 motors. Kevin Patterson at Trailer Trash Aerospace started making sugar motors a few years ago in 24mm... now he's playing with 5" motors, and flys 54mm and 75mm J's, K's, and L's EVERY month.
He bought all of his equipment, with the exception of the digital scale, at a Goodwill/Thrift store. It cost him MAYBE $50 to get started, and I believe he used a pretty inexpensive scale, as sugar motors don't require 1/10th of a gram accuracy like APCP propellants do due to the minute amounts of some chemicals used in composites. He's buying large quantities of AN and Sorbitol now, and makes propellant now for less than a DOLLAR/pound...
You can check out his website at:
https://www.trailertrashaerospace.com
Whew....man, I need a nap now!
R