Etsy Discount Calculator (2025)
Calculate how a discount affects your Etsy profit. See before vs. after profit, maximum discount you can offer, and break-even sale price.
By Marginory team · Online sellers with hands-on experience across Etsy, Shopify & POD
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%
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: https://www.etsy.com/legal/fees/ · Last verified: 2025-06-01
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.