How to use it
- On Etsy, open Marketing → Etsy Ads and pick a period (the last 30 days is the default).
- Copy revenue from ads, orders from ads and budget spent for that period into the calculator.
- Enter what one order costs you to make. Open “More options” to add shipping labels, packaging and sales tax.
- Read the answer at the top: profitable, breaking even or losing money, then compare your ROAS with the break-even ROAS.
How it’s calculated
All amounts are for the period you entered. Etsy fees are the US rates on the method page.
Etsy fees = 6.5% × revenue + (3% × (revenue + sales tax) + $0.25 × orders) + $0.20 × items sold
Profit before ads = revenue − Etsy fees − (product + shipping label + packaging) × orders
Profit after ads = profit before ads − ad spend
Current ROAS = revenue from ads ÷ ad spend
Break-even ROAS = revenue from ads ÷ profit before ads
Profit per ad order = profit after ads ÷ orders from adsIf profit before ads is $0 or less, no ROAS can break even, and the calculator says so instead of showing a number. The result counts as “breaking even” when profit after ads is within $1 or 1% of revenue, whichever is larger.
Assumptions: Etsy doesn’t say whether “revenue from ads” includes shipping, so we treat it as item price plus the shipping the buyer paid, without sales tax. If your figure leaves shipping out, add it per order under More options. Orders from Etsy Ads don’t pay the Offsite Ads fee: Etsy’s fee policy says that when the buyer’s last click was on an Etsy Ad, only the Etsy Ads fee applies.
Worked examples
$50.00 spend, 10 orders: profitable
Ads brought in $300.00 from 10 orders ($30.00 each, shipping included). Each order costs $8.00 to make and $4.50 to ship. Etsy fees come to $33.00, leaving $142.00 before ads and $92.00 after the $50.00 spend. ROAS is 6.00; break-even ROAS is 2.11.
Same orders, $200.00 spend: losing money
The sales are identical, but ROAS drops to 1.50, below the break-even 2.11. The ads now cost $58.00 more than the orders earned.
Same ads, a $20.00 product: a much higher break-even ROAS
With the product costing $20.00 instead of $8.00, profit before ads falls to $22.00. Break-even ROAS rises to 13.64, so the same ROAS of 6.00 now loses $28.00. The thinner the profit per order, the higher the ROAS you need.
Questions about Etsy Ads profit
What is a good ROAS on Etsy?
There is no single good number. It depends on how much profit each order leaves after Etsy fees and your costs. A shop with cheap materials might profit at a ROAS of 2, while a shop with expensive materials might need 6 or more. Compare your ROAS with your break-even ROAS rather than with another shop's.
Why is my break-even ROAS so high?
Break-even ROAS is revenue divided by the profit those orders leave before ads. When product costs, shipping and fees take most of the price, only a small profit is left to pay for ads, so you need a lot of sales per ad dollar to cover the spend.
Did my ads really cause these sales?
Not necessarily. Etsy counts an order as coming from ads when a shopper clicked one of your ads and then bought anything from your shop within 30 days. Some of those shoppers might have bought anyway. That's why the result is an estimate of what the ads earned, not proof.
Do orders from Etsy Ads also pay the Offsite Ads fee?
No. Etsy's fee policy says that if the buyer's last click before ordering was an Etsy Ad, only the Etsy Ads fee applies. The calculator never takes an Offsite Ads fee from Etsy Ads orders.
What's the difference between Etsy Ads and Offsite Ads?
Etsy Ads show your listings on Etsy itself. You set a daily budget and pay for clicks, whether or not they lead to a sale. Offsite Ads are shown on other sites such as Google or social media; you pay nothing upfront, but Etsy takes 15% (or 12% for shops with $10,000+ in yearly sales) of each order it attributes to them, up to $100 per order.
The calculator shows how an Offsite Ads fee would change one average order, separately from your Etsy Ads result.
Does revenue from ads include shipping?
Etsy describes it as the total sales from orders credited to your ads, but doesn't say whether shipping is included. We assume it is, without sales tax. If your number leaves shipping out, add the shipping you charge per order under More options.
Which period should I use?
Any period works as long as every number covers the same one. Etsy's Ads page shows the last 30 days by default. Longer periods even out slow and busy weeks; remember that an ad click can turn into an order up to 30 days later.
Sources
Fee rates are for US sellers, checked October 12, 2026. Etsy Ads definitions were checked on October 13, 2026.
- Etsy Help: How to Review the Performance of Your Etsy Ads — checked 2026-10-13
- Etsy Seller Handbook: Understanding your advertising (ROAS) — checked 2026-10-13
- Etsy Fees & Payments Policy — page last updated 2026-10-05, checked 2026-10-13
- Etsy Payments Policy (payment processing fees by country) — page last updated 2026-07-31, checked 2026-10-12
For a single order, the Etsy profit calculator shows what you keep, and the pricing calculator finds the price that reaches your target.