Etsy Profit Calculator
Enter your price, shipping, and costs to see your exact net profit and profit margin after every Etsy fee — instantly.
Free · No login · UnlimitedHow Etsy profit margin works
Net profit is what's left after subtracting every real cost from your revenue: materials, your actual shipping cost, and all Etsy fees — listing fee, 6.5% transaction fee, and payment processing fee, plus Offsite Ads if it applies. Profit margin expresses that profit as a percentage of your total revenue (price + shipping charged).
A common mistake is pricing only against materials cost and ignoring that Etsy fees apply to shipping too — so charging exact-cost shipping still slightly erodes margin once fees are subtracted.
Rates last verified 2026-07-19 against Etsy's official fee schedule.
Frequently Asked Questions
What is a good profit margin for an Etsy shop?
Most established Etsy sellers target 40-60% gross margin after materials and fees, though handmade goods with high labor time often price for higher margins to compensate for time invested. Below 20% margin is risky once you factor in your own time, since Etsy fees alone typically run 10-15% of order value before materials and shipping costs.
How is Etsy profit calculated?
Profit = (item price + shipping charged to buyer) minus materials cost, minus your actual shipping cost, minus all Etsy fees (listing fee, 6.5% transaction fee, payment processing fee, and Offsite Ads fee if applicable). This calculator runs that full formula for you.
Should I include my shipping cost or the shipping I charge buyers?
Both matter but they're different numbers. Shipping charged to the buyer counts as revenue and is also subject to Etsy's transaction and processing fees. Your actual shipping cost (postage, packaging) is a cost that reduces profit. If you charge exactly what shipping costs you, your margin on shipping alone is roughly zero — the fees are what eat into it.
Does profit margin change if I enable Offsite Ads?
Yes — Offsite Ads adds a 12-15% fee (capped at $100) only on sales attributed to those ads, so your margin on ad-driven sales is lower than organic sales. Many sellers price slightly higher or accept lower margin on Offsite Ads sales since Etsy requires participation once you cross certain thresholds.
Why is my Etsy profit lower than I expected?
The most common surprise is that Etsy's transaction and processing fees apply to shipping and gift wrap, not just the item price — so a low item price with high shipping still generates meaningful fees. Materials, packaging, and any labor time you haven't priced in also often get missed in quick mental math.