How the estimate is calculated
Profit equals item price plus buyer-paid shipping and gift wrap, minus seller-collected tax already included in the order total, production cost, seller-paid shipping, estimated Etsy fees and advertising costs. Margin is profit divided by the same item, shipping and gift-wrap revenue after seller-collected tax.
Transaction, regulatory and Offsite Ads fees use the displayed item price plus buyer-paid shipping and gift wrap. US transaction and Offsite Ads fees exclude sales tax; elsewhere, seller-responsible tax included in listing prices remains in those two fee bases. Enter seller-collected tax separately so it is removed from profit and margin revenue. Etsy-collected buyer tax is excluded from revenue and percentage fee bases, but included in payment-processing fees. The listing fee is treated as one $0.20 USD listing allocation per sale unless you change it.
Listing fee and Offsite Ads cap values are USD amounts converted with the editable reference rate. Etsy uses its own market rate when fees post. Set the Offsite Ads rate to 12% after your shop has reached Etsy’s $10,000 USD threshold; otherwise use 15%. The cap remains $100 USD per attributed order.