How the calculator works out your profit
Profit is what the buyer pays you for the item and shipping, minus Etsy's fees, minus everything the sale cost you. Sales tax passes through to the state, so it is not revenue. It still raises the payment processing fee, because Etsy charges that fee on the full amount the buyer pays.
Margin is profit divided by item price plus shipping. A $29 order with $9 profit is a 31% margin.
The Etsy fees come from the same rules as our Etsy fee calculator: $0.20 listing fee, 6.5% transaction fee on price plus shipping, 3% + $0.25 payment processing, and the optional Offsite Ads fee, capped at $100 per order.
Break-even price and target-margin price
The break-even price is the lowest item price where the sale covers its fees and costs and your profit is $0. Any lower and every sale loses money.
The target-margin price works the other way round. You pick the margin, and the calculator solves for the item price that gets you there after fees. Fees grow with the price, so you cannot add 30% on top of your costs and get a 30% margin. The calculator includes that.
If the target price says "not reachable", the margin you asked for is higher than what is left after Etsy's percentage fees. Lower the target or drop the Offsite Ads case.
Count your time as a cost
Leave the time fields at 0 and the calculator shows profit before you are paid. Fill them in and it shows profit after you are paid. For a handmade item the gap is often most of the margin. A 20-minute item at $15 an hour costs you $5 of time before materials.
Digital downloads are the easy case: set materials, packaging and postage to 0, set shipping to 0, and almost the whole price after fees is margin. Then the slow part is the listing itself. Our guides on choosing the 13 Etsy tags and how to sell on Etsy cover that step.