Etsy Profit Calculator
Calculate your true profit per sale on Etsy after all fees, material costs, and shipping expenses. Enter your sale price, item cost, shipping details, and Etsy's fees are automatically applied — giving you an accurate net profit and profit margin for every product you sell.
Worked Example — Handmade ceramic mug
Free shipping can boost conversions but shifts the full shipping cost onto your margin — factor it into your price.
How to Calculate Etsy Profit
Etsy profit equals your net revenue after Etsy's fees, minus your production costs and actual shipping expenses. Sellers frequently underestimate their costs by forgetting that Etsy's 6.5% transaction fee applies to shipping charges too. For example, if you list a $30 item with $7 shipping and charge free shipping instead, Etsy still collects 6.5% + payment processing on the full $30 — you just absorb the actual postage cost from your margin. The safest approach: add your true shipping cost into your item price and set shipping to $0, so Etsy's percentage fees apply to a predictable base.
Frequently Asked Questions
What is a good profit margin for an Etsy shop?
Most successful Etsy sellers target a net profit margin of 30–50% or higher after all fees and costs. Margins below 20% leave little room for occasional returns, listing renewal fees, or Etsy Ads spend. Handmade goods with unique materials can often support margins of 50–70% because buyers value the craftsmanship.
Should I include Etsy Ads in my profit calculation?
Yes, if you run Etsy Ads (promoted listings within Etsy search). Divide your total monthly Etsy Ads spend by your number of ad-driven orders to get an average cost per order, and add that to your costs per sale. The Offsite Ads fee covered in this calculator is separate — it only applies when Etsy promotes your listing on external platforms and a sale results.
How do I find my break-even price on Etsy?
Your break-even price must cover: (1) item cost, (2) actual shipping cost, and (3) all Etsy fees. Because Etsy's fees include a percentage component, you need to solve for the price algebraically. A simplified shortcut: divide your total non-percentage costs by (1 − 0.065 − 0.03) = 0.905, then add $0.20 + $0.25 back. Our Etsy Margin Calculator shows your break-even price directly.
Fees last verified February 2026. Confirm current rates at etsy.com before making pricing decisions.
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