Etsy margin calculator — profit margin % per sale

Revenue minus COGS is gross margin. What Etsy sellers actually need is net margin — the % of sale price left after every cost hits your bank account.

Margin formula

Net margin % = (Net profit ÷ Sale price) × 100

Net profit = Sale price − COGS − Outbound shipping − Etsy fees − Ad cost per unit

A $40 listing that nets $12 is 30% margin, not the 70% you get from subtracting COGS alone.

Healthy Etsy margins (rule of thumb)

• 40%+ net margin — room for ads and promos
• 25–40% — workable if volume is high and returns are low
• Under 20% — one fee hike or ad test can wipe profit

Example: $28 handmade mug

$28 sale · $8 COGS · $5 shipping · $2 ads → net ~$9 → 32% margin.

Same mug at $22 with the same costs → net ~$4 → 18% margin. Price cuts destroy margin faster than they grow volume.

Margin vs dollar profit

A $80 item at 25% margin ($20 net) beats a $25 item at 40% margin ($10 net). Use margin % to compare SKUs; use dollar profit to plan monthly income.

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