The Profit Calculator helps you determine the estimated cost of creating and selling your items. This will help you predict and assess your profit margin for each item you sell.
Benefits
This feature makes calculating your profit margins quick and easy. Once you evaluate your profit margins, it's easy to determine prices for your products that are fair for both you and your customers.
How to use
In the Main Menu, select "Tools" and then "Calculators."
The Profit Calculator is located within the first tab. If you would like to evaluate the performance of your Etsy Ads campaign, click the "ROI Calculator" tab next to it.
How much the customer pays
Use data from your listing (or future listing) to fill out this section. This includes the following:
Listing Data | What It Means |
Location | The country in which your shop is located. |
Price | The retail price of your item. |
Shipping Price | The price the customer pays for shipping. Enter “0” if shipping is free. |
Coupon/Discount (%) | Any discount the customer receives via a coupon or sale. Enter “0” if there is no discount. |
Your Costs
Next, based on your best estimates, enter your costs for this listing. This includes the following:
Listing Data | What It Means |
Labor Cost | How much you choose to pay yourself. |
Material Cost | The cost of all materials used to create the item. Don’t forget to include the cost of your packaging. |
Shipping Cost | Both the price of the shipping label as well as the cost of your mailing supplies. |
Etsy Ads | Additional fee if the customer purchased the item via an ad. Enter “0” if the customer did not purchase the item via an ad. |
Renewing | Additional fee if you choose to renew the listing. This is done after a customer purchases the last unit that is in stock of a particular item, but can also be done after a listing expires. |
Fees & Taxes
Under "Fees & Taxes," choose your offsite ads fee from the three options listed. After you do this, the following fees will auto-populate:
Type of Fee | What It Is |
Listing Fee | A flat fee of 20 cents that Etsy charges every time a customer purchases one of your listings. |
Transaction Fee | A 6.5% fee that Etsy charges per transaction. |
Payment Processing Fee | A fee many e-commerce platforms charge to cover the costs of processing customers' credit and debit cards. Etsy charges a payment processing fee of 3% + 25 cents for US users. If you live outside the US, please note that your payment processing fee may differ from this. Learn more about payment processing fees here |
Regulatory Fee | A fee Etsy charges to sellers in certain countries to cover the costs of doing business in those countries. Learn more about regulatory operating fees here |
Estimated Profit
Click the orange "Calculate" button at the bottom of the screen to generate a tally with Price, Total Cost, Total Fees, and Estimated Profit. Use this data to determine whether or not you need to adjust your item’s retail price.
Who can use this?
This tool is available to all eRank members.
We'd love to hear what you think of this feature. Feel free to click the button below to check out our Facebook group. Start a discussion, exchange ideas, or ask questions. Someone friendly is always there to help you!