Etsy Free Shipping Profit Calculator
Estimate how offering free shipping on Etsy affects your profit, margin, and break-even selling price.
Overview
Use this Etsy Free Shipping Profit Calculator to compare your current pricing with a free shipping offer. Enter your item price, shipping charged, product cost, actual shipping cost, Etsy fee rate, and your proposed free shipping price to see how your profit and margin may change.
How it works
The calculator compares two order scenarios. In the current setup, buyer revenue equals item price plus shipping charged. In the free shipping setup, buyer revenue equals the single listed product price. For each scenario, estimated percentage fees are calculated from revenue, then fixed fees, product cost, and actual shipping cost are subtracted to estimate profit. The break-even free shipping price works backwards to find the price that would keep your current profit after fees and costs.
How to use this calculator
- 1Enter your current item price.
- 2Add the shipping amount you currently charge the buyer.
- 3Enter your product cost and actual shipping cost per order.
- 4Input your estimated Etsy percentage fee rate and any fixed fee per order.
- 5Enter the price you would charge if shipping were included.
- 6Review the profit difference and break-even free shipping price.
Example Calculation
Item price
$35
Shipping charged to buyer
$5
Product cost
$12
Actual shipping cost
$7
Total Etsy fee rate
10%
Fixed fee per order
$0
Price with free shipping
$40
Free shipping profit
$17.25
With a current order total of $40, estimated current profit is about $17.25. If you offer free shipping at $40, estimated profit stays about $17.25, so this price is roughly break-even compared with the current setup.
Frequently asked questions
What does this Etsy free shipping calculator estimate?
It estimates profit per order under your current pricing and under a free shipping price so you can compare the difference.
What should I include in product cost?
Include direct per-item costs such as materials, production, packaging, and other order-specific costs you want reflected in profit.
Should I include Etsy fees as one combined rate?
Yes. If you want a simple estimate, enter your best combined percentage for Etsy selling and payment fees in one rate.
Does free shipping always reduce profit?
Not always. If you raise your item price enough to cover shipping and the related fees, your profit may stay similar or even improve.
What is the break-even free shipping price?
It is the estimated item price you would need to charge with free shipping to earn the same profit as your current setup.
Does this calculator include taxes or ads?
No. Taxes, refunds, and advertising costs are not included unless you build them into your costs or fee rate.
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Assumptions and warnings
Assumptions
- The calculator estimates profit for one order at a time.
- The Etsy fee rate entered is an overall estimate that combines your percentage-based selling and payment fees.
- Product cost and shipping cost are assumed to be the direct costs for a single order.
- Taxes, refunds, ad costs, currency conversion fees, and offsite ad fees are excluded unless you include them in your entered costs or fee rate.
Warnings
- This calculator provides an estimate only and is not financial or business advice.
- Marketplace fees and shipping costs can change, so check your actual Etsy charges before updating prices.