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🛒 E-commerce & Pricing

Find the Etsy Ads ROAS Where Revenue Stops Being Profit

Subtract product cost, Etsy transaction, listing and payment fees before deciding whether an ad campaign is profitable.

Break-even ROAS

Target ROAS

Max ad spend

Actual ROAS

Profit after ads

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How the calculation works

ROAS can look positive while the order loses moneygoods + deliveryEtsy + payment feesmaximum adsbefore zero profitBreak-even ROAS = order revenue ÷ contribution before ads.

How to Use This Tool

ROAS is revenue divided by ad spend. It does not know whether the product has a margin. This calculator first removes product and fulfilment cost, Etsy's listing and transaction fees, payment processing and optional Offsite Ads fee. The contribution that remains is the most advertising can consume before profit reaches zero.

Use the full fee base

Etsy's current help material lists a 6.5% transaction fee on the total order amount including charged postage and gift wrap. Payment processing is a separate percentage plus fixed amount and varies by country. The defaults are editable because using a US processing rate for another country would produce a false answer.

Illustrative campaign where break-even is 2.0×1.5× ROASloss2.0× ROASbreak-even3.0× ROASprofit
A “good” ROAS is product-specific; the same campaign can fund one listing and drain another.

Target ROAS preserves profit

Break-even intentionally leaves nothing for the seller. The target input reserves a percentage of order revenue as profit, reducing allowable ad spend and raising the required ROAS. Use actual attributed ad spend per order to compare the campaign with both lines.

Do not mix Etsy Ads and Offsite Ads

Etsy Ads are click-based spend. Offsite Ads are charged as a sale fee on attributed orders and can use different rates or programme rules. Enter Offsite Ads only for a scenario where it applies, and check the current amount in Shop Manager before changing prices.

Sources & assumptions

Tool Spec v2 · verified 2026-08-18. Platform rules and fees can change; the editable inputs remain authoritative for your account.

Official references

Model assumptions

  • All percentage and fixed fees are editable and should match the seller's country and current Payment account.
  • Break-even ROAS uses pre-ad contribution and excludes repeat-purchase lifetime value.
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Frequently Asked Questions

What is break-even ROAS?
Order revenue divided by contribution before advertising. At that ROAS the entire pre-ad contribution is spent on ads and profit is zero.
Is Etsy's transaction fee included?
Yes. The default is the currently published 6.5%, applied to item revenue plus shipping charged. The field remains editable for future changes.
Why is payment processing separate?
Etsy Payments processing is an additional percentage plus fixed fee and varies by country. Enter the rate shown for your bank country.
Should shipping charged count as revenue?
Yes for this fee model because Etsy's transaction fee applies to charged postage. Enter your actual fulfilment expense inside product and fulfilment cost.
Does a 2× ROAS mean 50% profit?
No. It only says ad spend was half of attributed revenue. Product cost and marketplace fees can consume the other half, leaving zero or a loss.
How do Offsite Ads affect the result?
They add an attributed-sale fee rather than click spend. Enter the applicable percentage only when modelling an Offsite Ads order.

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