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Marginory

Etsy Discount Calculator (2026)

Calculate how a discount affects your Etsy profit. See before vs. after profit, maximum discount you can offer, and break-even sale price.

By Content reviewed

Pricing

$
%
Sale price: $24.00

Costs

$
$

Before discount

Price$30.00
Etsy fees-$3.30
Net profit$14.70
Profit margin49.0%

After 20% discount

Sale price$24.00
Etsy fees-$2.73
Net profit$9.27
Profit margin38.6%
Profit change vs. full price-$5.43

Discount limits

Break-even price$13.76
Maximum discount (break-even)54.1%

Worked example: what an Etsy sale does to profit

A $40 item, free shipping, $15 total cost.

Full price10% off20% off30% off
Sale price$40$36$32$28
Profit$20.75$17.13$13.51$9.89
More orders needed to match—21.1%53.6%109.8%

A 20% sale needs about 53.6% more orders just to earn the same total profit.

Cost inputs are illustrative; fees are calculated with the same rates as the calculator above.

Etsy discount profit formula

Sale price: Original price × (1 − Discount%)
Etsy transaction fee: Sale price × 6.5%
Payment fee (US): Sale price × 3% + $0.25
Net profit: Sale price − Etsy fees − Listing fee − Product cost − Shipping
Max discount (break-even): 1 − (Break-even price / Original price)

Assumptions

  • US Etsy Payments: 3% + $0.25
  • Listing fee: $0.20 included in calculation
  • Offsite Ads fee not included
  • Etsy transaction fee applies to the discounted price, not original price

Source: etsy.com/legal/fees/ · Last verified: 2026-10-11

Review the market, fee bases and exclusions shown with this tool. Published rates and illustrative cost inputs have different certainty. Compare your breakdown with an actual order statement. Sources and methodology.

Related Tools

Does Etsy charge fees on shipping?Is Etsy Offsite Ads worth it?Etsy Profit CalculatorEtsy Sale Price CalculatorEtsy Fee Calculator

Frequently Asked Questions

How much can I discount on Etsy without losing money?
Maximum discount % = 1 − (Break-even price / Current price). If your break-even price is $15 and you list at $25, you can discount up to 40% before losing money. Etsy fees apply to the discounted price, so your break-even is lower than it looks.
Do Etsy fees apply to the original price or sale price?
Etsy fees apply to the discounted sale price — the amount the buyer actually pays. This is good news: if you run a 20% off sale, Etsy's 6.5% transaction fee is calculated on the reduced price, not the original.
Is running an Etsy sale worth it?
Etsy sales can increase conversion rates by 10–30%, which may offset the reduced per-order margin. The key is knowing your margin at the discounted price. If a 20% discount leaves you with a 15% margin and doubles your orders, net profit increases. Calculate both scenarios before discounting.