Summary
Use the Profit Calculator to 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 enables you to quickly calculate your profit margins. Once you evaluate your profit margins, it is 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 Profit Calculator.
How Much the Customer Pays
Use data from your listing (or future listing) to fill out the section titled How much the customer pays. This includes the following:
- Location – use the dropdown menu to select the location of your shop
- Price – The retail price of the item
- Shipping Price – The price the customer pays for shipping. Enter “0” if shipping is free
- Coupon/Discount as a percentage – Any discount the customer received via a coupon or sale. Enter “0” if the customer did not receive a discount
Your Costs
Next, based on your best estimates, enter Your Costs. This includes the following:
- 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 – This includes 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 3 options listed. After you do this, the following fees will auto-populate:
- Listing Fee – Etsy charges a flat fee of 20 cents every time a customer purchases one of your listings
- Transaction Fee – Etsy charges a 6.5% transaction fee
- Payment Processing Fee – 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
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 feature is available to all eRank members.