Etsy Break-Even Calculator

    Find the exact monthly unit volume that makes your Etsy shop profitable after fixed costs like subscriptions, software, photography and overhead.

    Last reviewed: July 2026

    Quick answer

    With monthly fixed costs of $200, average item price of $30, variable cost per unit (materials + shipping + labour) of $12, the profit per sale is $14.70. Adjust the inputs below for your own numbers.

    Inputs

    $
    $
    $

    Results

    Profit per sale
    $14.70
    Margin 49.0%
    Break-even units / month
    14
    Break-even revenue
    $420.00
    Break-even per day
    0.5 sales
    Worked example

    With monthly fixed costs $200, average item price $30, variable cost per unit (materials + shipping + labour) $12, assume offsite ads? No, this calculator returns profit per sale $14.70 and break-even units / month 14.

    Why break-even matters more than revenue

    Plenty of Etsy shops do $3,000 a month and lose money — because rent, Adobe subscriptions, photography, packaging in bulk and platform overhead silently eat all the gross profit. Break-even analysis pins down the exact unit count where your shop stops being a hobby with a cost and starts being a business with a margin. Run it once a quarter and any time fixed costs change.

    What counts as fixed cost

    Anything you pay monthly regardless of unit volume. Common fixed costs for Etsy sellers: studio rent or workspace share ($100–$500), accounting software like QuickBooks ($30), photo editing software ($10–$50), email marketing tool ($30–$100), packaging bought in bulk amortized monthly, business insurance, business banking fees, internet plan attributable to the business, and any retainer fees you pay a VA or photographer. Add them all and put the total into the calculator.

    How to lower your break-even

    Three levers move break-even fast. Raise prices — even a 10% bump on an item where demand is inelastic cuts break-even unit count by 30–40%. Cut variable cost — switching to a cheaper supplier, simpler packaging or thinner padded mailers chips down COGS. Cut fixed cost — pause unused subscriptions, downgrade software tiers, swap a paid email tool for a free Mailchimp account under 500 contacts. Often the fastest path to profitability on Etsy is not selling more but spending less. Etsy occasionally adjusts fees, regulatory operating fees, and offsite ads rates. Always double-check the latest figures in your Etsy Shop Manager before pricing.

    Using break-even to set sales goals

    Once you know break-even (say 25 units), set a stretch goal at 1.5× (37 units) and a survival floor at 0.8× (20 units). Track weekly against those numbers in Shop Manager. If you are below the floor for two consecutive months, something structural is wrong — usually pricing too low or wrong product market fit. If you are above the stretch consistently, raise prices or invest in scaling production.

    Frequently asked questions

    What if my profit per sale is negative?

    The calculator returns 'Never' for break-even units. Raise the price, cut COGS, or both. You cannot scale your way out of negative per-unit margin.

    Should I include my own salary in fixed costs?

    Either include it in fixed costs OR include your hourly labour rate in COGS — but not both. Pick one to avoid double-counting.

    How often should I recalculate break-even?

    Every quarter and any time you raise prices, change suppliers, add a subscription or hit the $10k offsite-ads threshold.

    How many sales do I need to break even?

    Divide your fixed costs (materials, listing fees, ads) by the profit per unit. This calculator shows the exact unit count and revenue where you stop losing money and start profiting.

    Sources & method

    How this is calculated: Profit per sale = price − Etsy fees ($0.20 listing fee + 6.5% transaction fee (on the full order total including shipping) + 3% + $0.25 payment processing + optional 12% (over $10k trailing-12-month) / 15% offsite ads fee) − variable cost per unit. Break-even units = monthly fixed costs ÷ profit per sale (rounded up); break-even revenue = those units × order total.

    Source: Etsy — Fees & Payments Policy · Estimate based on current Etsy fees.

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