Are You Really Making a Profit on Etsy?
Here’s How to Tell
Are you making real profit from your Etsy shop — or just seeing money move in and out of your account?
It’s easy to assume you’re doing well because you’ve made sales. But what if those sales are actually costing you money? Between Etsy fees, shipping, packaging, ads, and materials, many sellers discover they’re barely breaking even (or worse — losing money).
Let’s break down how to figure out if your Etsy shop is truly profitable — and how you can fix it fast if it’s not.
Revenue ≠ Profit
Just because you made $500 this month doesn’t mean you earned $500.
Here’s where that money might actually be going:
Etsy Listing Fee: $0.20 per item
Transaction Fee: 6.5% of each sale
Payment Processing Fee: 3% + $0.25 per order
Shipping + Packaging: Costs vary
Ad Spend: If you're running Etsy ads
Cost of Materials: Don’t forget about what it takes to actually make your product
Add it all up… and you might only be keeping a fraction of your sale price.
How to Calculate True Profit
To find your real profit per product, you need to subtract all of your expenses from your revenue.
Here’s a simple formula:
Profit = Sale Price – (Etsy Fees + Materials + Shipping + Ads + Packaging)
Sounds simple… but doing this manually for every product can get time-consuming fast.
Use a Profit Calculator to Make It Easy
That’s why I created the Etsy Profit Calculator — a plug-and-play spreadsheet that does all the math for you. Just enter your sale price, input your expenses, and it auto-calculates:
Etsy fees (listing, transaction, and payment processing)
Your total costs
Your actual profit
A quick view of your pricing and whether it’s profitable
Why This Matters for Your Business
Knowing your numbers helps you:
Set prices that actually earn you money
Make smart decisions about offering free shipping or sales
Understand which products are worth keeping and which aren’t
Stop undercharging — and start paying yourself fairly
Try It Now
Ready to find out if you’re really making money on Etsy?
👉 Download the Etsy Profit Calculator for just $5
It’s beginner-friendly, customizable, and you’ll finally have a clear answer on what’s working — and what’s not.