Etsy Profit Margin Calculator
(Margin, Markup & Target Price)
See what share of an Etsy sale is profit, or find the price that gives the margin you want.
Step 1 — Sale Price & Fulfillment
Listing retail price in your Etsy shop
Amount buyer pays (0 if free shipping)
Materials, labor, or wholesale unit cost
Postage & label cost paid by seller
Number of units per order
Optional active promotional coupon
Step 2 — Etsy Account & Fee Structure
Etsy Profit Margin Results
💡 Etsy Margin Formulas
Net Profit Margin (%) = (Net Profit / Total Revenue) × 100
Cost Markup (%) = (Net Profit / Total COGS & Shipping) × 100
Target Price = (Total Unit Costs + Fixed Fees) / (1 - Variable Fee % - Target Margin %) - Shipping Charged
This Etsy profit margin calculator tells you what share of a sale you keep once your costs and Etsy's fees are paid. It works in two directions. Enter a price to see the margin it gives, or enter the margin you want and get the price that reaches it. Both use the same fees: the listing fee, the 6.5% transaction fee, payment processing for your country and, if you choose it, the Offsite Ads fee.
Profit Margin Formula
Your costs are the item itself, the postage you pay, packaging and anything you spend on marketing per sale. Etsy's fees are worked out on the price plus the shipping you charge the buyer.
Worked Example
A US seller lists an item at $30.00 with free shipping. The item costs $9.00 to make and $4.00 to post.
| Line | Calculation | Amount |
|---|---|---|
| Listing fee | 1 item | $0.20 |
| Transaction fee | $30.00 × 6.5% | $1.95 |
| Payment processing | $30.00 × 3% + $0.25 | $1.15 |
| Etsy fees | $3.30 | |
| Your costs | $9.00 + $4.00 | $13.00 |
| Profit | $30.00 − $3.30 − $13.00 | $13.70 |
The margin is $13.70 ÷ $30.00 = 45.7%. Etsy's fees took 11% of the sale. The sale breaks even at $14.86, which is the price where the profit is zero.
Margin and Markup Are Not the Same
Margin compares the profit with the price. Markup compares it with what you spent. In the example the profit is $13.70 on costs of $13.00, so the markup is 105% while the margin is 45.7%. Mixing the two up is a common way to underprice: adding 50% to your costs does not give a 50% margin.
| Markup on cost | Margin before fees |
|---|---|
| 25% | 20% |
| 50% | 33.3% |
| 100% | 50% |
| 200% | 66.7% |
These are the figures before Etsy's fees. After fees the margin is lower again, which is why the calculator works from the full sale.
Finding the Price for a Target Margin
For a US seller the fee rate is 6.5% + 3% = 9.5% and the fixed fees are $0.20 + $0.25. To earn a 40% margin on the item above: ($13.00 + $0.45) ÷ (1 − 0.095 − 0.40) = $13.45 ÷ 0.505 = $26.63. A higher target pushes the price up quickly. At 60% the same item has to sell for $44.10.
What Lowers a Margin
- Shop sales. A discount comes straight out of profit, because the costs do not fall with the price. Enter the discount to see the margin during a sale.
- Offsite Ads. An order that follows an ad click costs a further 15%, or 12% for shops above $10,000 a year. A 45.7% margin becomes 30.7%.
- Free shipping. If you pay the postage and do not raise the price, the whole cost of it comes out of the margin.
- Low prices. The two fixed fees weigh most on cheap items. On a $5.00 sale they are $0.45, or 9% of the price, before any percentage fee.
How to Use the Etsy Profit Margin Calculator
- Choose a mode: Calculate Profit Margin starts from your price. Solve Target Selling Price starts from the margin you want and gives the price.
- Enter the sale and your costs: Type the price or the target margin, the shipping you charge, what the item costs you and what the postage costs.
- Set your country and Offsite Ads: The country sets the payment processing rate. Choose 15% or 12% to see a sale that came from an Offsite Ad.
- Read the result: You get the profit, the margin, the markup, the total fees and the break-even price.
For a line-by-line view of the fees alone, including the regulatory operating fee for each country, use the Etsy Fee Calculator. If you advertise, the Break-Even ROAS Calculator turns a margin into the return your ads have to reach.
Frequently Asked Questions
What is a good profit margin on Etsy?
There is no single figure. It depends on what you sell. Digital downloads have almost no cost per sale, so the margin is high. Physical goods with materials and postage leave less. Work out your own margin first, then decide whether it pays for your time.
How do I calculate profit margin on Etsy?
Subtract your costs and Etsy's fees from the amount the buyer pays, then divide by the amount the buyer pays. A $30 sale that leaves $13.70 has a margin of 13.70 ÷ 30 = 45.7%.
What is the difference between margin and markup?
Margin is profit as a share of the selling price. Markup is profit as a share of your costs. The same sale has a larger markup than margin: $13.70 profit on $13 of costs is a 105% markup and a 45.7% margin.
How do I price an item for a 40% margin?
Add your costs and the fixed fees, then divide by 1 minus the fee rate minus 0.40. For a US seller that is costs plus $0.45, divided by 0.505. The calculator does this when you choose Solve Target Selling Price.
Does a shop sale change my margin?
Yes, and by more than the discount suggests. Your costs stay the same while the price falls. A 20% sale on an item with a 45% margin leaves a margin of about 34%.
Why are Etsy's fees a different percentage on every sale?
Because two of them are fixed amounts: $0.20 for the listing and $0.25 for payment processing in the US. On a $5 item those are 9% of the price. On a $50 item they are under 1%.
Fees were taken from Etsy's Fees & Payments Policy and Help Centre as of 3 October 2026. Etsy changes its fees from time to time: confirm the rates for your country on etsy.com/legal/fees before you set a price.