Etsy
Etsy Profit Margin Calculator
Enter your selling price, product cost and shipping cost to find your profit in dollars and your profit margin after all Etsy fees, including Offsite Ads.
Profit is what is left after Etsy fees, product cost, the postage label and other per-order costs. Margin is that profit divided by everything the buyer pays, so it tells you how efficiently each sale turns revenue into kept money.
Formula
Profit = (item price + shipping charged) − Etsy fees − product cost − postage label cost − other per-order costs. Profit margin = profit ÷ (item price + shipping charged) × 100. Etsy fees here are the $0.20 listing fee, 6.5% transaction fee, 3% plus $0.25 US payment processing, and any Offsite Ads fee capped at $100.
How it works
Enter everything the buyer pays and everything the order costs you, including the label you actually buy — not the shipping amount you charge. The calculator subtracts Etsy fees first, then your costs, and reports both the dollars left and the margin percentage, so you can compare products of very different prices fairly.
Worked example
A $42 item with $6 shipping charged, product cost $14, label $5.50, other costs $2, and an Offsite Ads sale at 15%: the buyer pays $48.00. Etsy fees are $0.20 listing + $3.12 transaction (6.5% of $48.00) + $1.69 processing (3% of $48.00 = $1.44, plus $0.25) + $7.20 Offsite Ads (15% of $48.00) = $12.21. Total costs are $12.21 + $14.00 + $5.50 + $2.00 = $33.71. Profit is $48.00 − $33.71 = $14.29, and margin is $14.29 ÷ $48.00 = 29.8%.
FAQs
How is profit margin different from profit in dollars?
Profit in dollars is what is left after every cost. Profit margin divides that profit by the total the buyer pays, so it shows how much of each sales dollar you actually keep. A $14 profit on a $48 sale is a 29.8% margin.
Should I count the shipping I charge as revenue?
Yes. The buyer pays it, Etsy charges fees on it, and your label cost comes out of it. Leaving it out of both sides of the calculation hides the fee on shipping and flatters your margin.
Why does an Offsite Ads sale change the margin so much?
Offsite Ads add 15% or 12% of the order total on top of the ordinary fees, capped at $100 per order. On a thin-margin item that extra line can wipe out the profit entirely, which is why shops under $10,000 a year may choose to opt out.
What costs should I put in the other costs box?
Packaging, label printing, marketplace tools, and any per-order cost that is not the product itself or the postage label. Put a per-order share of a monthly cost there, not the whole monthly bill.
Is a 30% margin good on Etsy?
There is no universal good margin. It depends on how many hours the item takes, how often it sells, and what return rate you see. Compare the margin with your time and volume, not with another seller's headline number.
Stand: October 2026. Source: Etsy — Fees & Payments Policy.
Sources: Etsy Help — What are the Fees and Taxes for Selling on Etsy and Etsy Fees & Payments Policy. US payment processing rate 3% plus $0.25; Etsy states the rate varies by country.
Disclaimer: Results are estimates and general information only, not tax or financial advice. Fees change, so confirm the current rate on the platform before you price a listing.
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