Etsy Profit Calculator
Find your real profit on an Etsy sale after US fees, materials, labour, postage and ads — plus the price you need for a target margin.
Estimate the profit on one US Etsy order after seller fees, materials, packaging, postage, advertising and your making time. The model allocates one listing fee to the sale and assumes item and shipping are taxed at the same rate. It also finds an unrounded item-price threshold for a chosen margin.
How to use this tool
- Enter the item price, the shipping you charge and the sales tax rate on the order.
- Add materials, packaging, the postage you actually pay and any Etsy Ads spend per sale.
- Enter how long one item takes to make and the hourly rate you want to pay yourself.
- Say whether the sale came from an Offsite Ad, and set a target margin to get a suggested price.
Formula
Etsy fees = $0.20 + 6.5% × (price + shipping) + 3% × (price + shipping + tax) + $0.25 + Offsite Ads fee
Profit = Price + Shipping − Etsy fees − Your costs
Below the Offsite cap: price = (0.45 + Costs) ÷ (1 − 0.065 − 0.03 × (1 + tax) − Offsite rate − m) − Shipping
Rates and m are decimals. Margin divides profit by item plus shipping revenue. Above the $100 Offsite cap, replace 0.45 by 100.45 and remove the Offsite rate from the divisor. The calculator chooses the consistent branch. Round a quoted price upward to cents and allow for statement rounding.
Example
A $30 necklace with $6 shipping and 7% sales tax pays $0.20 to list, $2.34 in transaction fees and $1.41 in processing — $3.95 in total. Materials cost $6, packaging $1 and postage $5, and it takes 30 minutes at $15 an hour ($7.50). The profit is $12.55, a 34.87% margin, and you earn about $40.11 for each hour spent making it. To hit a 30% margin with the same costs, the item price has an unrounded threshold of about $27.0901, so quote at least $27.10 before statement-rounding adjustments.
Frequently asked questions
Which Offsite Ads rate should I select?
Use the rate in your shop settings. Reaching $10,000 in a qualifying consecutive 365-day period makes 12% participation permanent even if later sales fall. The cap applies per attributed order.
Should I count my own time as a cost?
Enter your making time and desired hourly wage to include labor. Set the wage to zero, keeping the minutes, to see profit before paying yourself while retaining the per-hour result. Other business overhead is not included.
Is this profit before income tax?
Yes. Income and self-employment tax depend on your yearly income, so they are not taken off a single sale.
Sources
Last updated: 2026