Calculation Methodology & Fee Sources

Rates checked 2026-10-25. This is the date of our source check, not a claim that a new policy took effect on that date. All tools model one item in one order by a US seller with a US bank account, using Etsy Payments and USD listing/settlement.

Fee bases

Offsite Ads is generally 15% below the $10,000 sales threshold and 12% after reaching it. The participation rules look at qualifying consecutive-year sales and can require lifetime participation. A rate of 0% here means this modeled order has no attributed Offsite Ads fee; it does not mean every shop may opt out. Etsy’s attribution rules determine the charge.

Rounding

Money inputs accept at most two decimal places and are converted to integer cents. Percentage inputs accept two decimal places. Each variable fee is rounded half up to the nearest cent; fixed fees are added separately. The Offsite Ads cap is then applied. This explicit convention may differ from Etsy’s actual statement-level rounding or credits by cents; the site is not an exact invoice reconciler.

Definitions

Seller revenue = item + shipping + gift wrap. Contribution profit = revenue less modeled fees and entered costs. Margin = contribution / revenue. Zero revenue gives an undefined margin. Payout excludes buyer tax and subtracts modeled Etsy fees, but does not represent your bank deposit.

Reverse pricing

Dollar mode solves contribution ≥ target; margin mode solves contribution × 100 ≥ revenue × target margin. Break-even solves contribution ≥ zero. We first bound the search using continuous fees, then check cent prices with integer arithmetic. Combined percentage fees plus target margin must be below 99%; the maximum item price is $1,000,000. Rounding means adjacent prices need not change profit by exactly one cent.

Advertising

Etsy Ads charges per click; input actual spend rather than assuming a click price. Campaign ROI uses one representative order, excludes the per-order ad allocation, then subtracts campaign spend once. ROAS is revenue/spend, not profit/spend. Zero spend gives undefined ratios; negative contribution cannot support positive paid acquisition.

Exclusions

Income taxes, automatic tax-rate determination, refunds, mixed baskets, unsold renewals, subscriptions, reserves, currency conversion, non-US regulatory fees, VAT and Share & Save credits are not calculated. Include known allocations or taxes on seller services in Other costs. For mixed baskets or statement reconciliation use your actual Etsy records.

Maintenance

Source checks need a human or AI review of official policy changes. A saved scenario keeps its own fee overrides; press Reset to return to current build defaults. No fee scraping or automatic policy edits occur.