Calculation methodology & fee sources

Fee references checked on 12 October 2026. This toolkit estimates one item sold in one order. All prices and costs must be in the same selected currency. Currency selection does not fetch or apply exchange rates.

The calculation

Return on cost divides profit by entered per-order costs; it excludes seller fees from the denominator. Margin is undefined when revenue is zero; return on cost is undefined when costs are zero.

Seller fees and taxes

Transaction, regulatory, and conversion percentages use discounted item revenue plus shipping charged. Processing uses that revenue plus marketplace-collected tax, then adds the fixed payment fee. Marketplace-collected tax is not counted as your revenue. Listing fees are allocated once per order. Offsite advertising uses the selected percentage, capped at the amount entered.

The effective tax on seller fees is applied to the combined modeled fees. This is a simplified blended rate; actual VAT/GST treatment can differ by fee and seller status. Adjust it using your statement. Enter seller-remitted tax or nonrecoverable purchase taxes as an additional cost when appropriate. This is not a tax return or a VAT-inclusive pricing calculator.

Country presets

All Etsy presets start with a 6.5% transaction rate. US processing is 3% + $0.25. UK processing is 4% + £0.20. Canada uses 3% + CA$0.25 for domestic/US orders or 4% for other international orders. Australia uses 3% + AU$0.25 domestically or 4% internationally. The listed euro-area presets use 4% + €0.30. Regulatory fee presets: UK 0.48%, Canada 0.50%, France 1.14%, Spain 0.88%, Italy 0.80%. Other listed presets use 0%.

Listing fees originate at US$0.20 and Offsite Ads cap at US$100. Outside USD the starting conversions are illustrative, not live: 0.78 GBP, 1.37 CAD, 1.52 AUD, or 0.92 EUR per USD. Replace the listing and cap values with your actual converted figures. Choosing another currency does not convert fixed fees.

What the model leaves out

Unentered sales/VAT taxes, income taxes, deposit fees, setup fees, unsold listing renewals, refunds, reserve timing, tiered fees, gift wrap, multiple-item allocation, and country-specific exemptions are not automatically modeled. Put known per-order expenses into Other cost. Fixed monthly expenses belong in overhead.

Target and break-even prices

The calculator searches for the smallest item price that reaches the selected contribution margin or profit, with all current cost, discount, shipping, and fee assumptions held constant. Results round upward to the next cent. No solution is shown if the goal cannot be reached within the supported price range. Monthly break-even orders cover entered overhead only when per-order contribution is positive.

Official references

• Etsy fees and taxes
• Etsy payment processing by bank country
• Etsy regulatory operating fees
• Etsy Offsite Ads

Check current official documentation and your own seller account before relying on a preset.