Start with the decision
A discount reduces revenue while many costs stay the same. That is why a 10% price cut is not usually a 10% reduction in the amount you keep. Write down the current contribution first, then compare the discounted scenario.
Worked calculation
With a 30 item, 5 charged shipping, 12 product cost, 5 postage and the standard illustrative US fee inputs, contribution is 14.225. Discount the item by 10%: revenue becomes 32 and contribution becomes 11.51. The contribution reduction is about 19.09%.
Compare the discount with contribution lost
For this order model, contribution starts with item revenue after any discount plus charged shipping. Subtract the modeled marketplace and processing charges, listing allocation, product and packaging cost, labor and actual postage. Keep tax treatment and the fee base consistent with the official account records.
A promotion decision needs a baseline and a changed case. Keep product cost, postage, fee assumptions and order mix the same where they truly remain unchanged; change only the discount first. Then test a second case if the promotion also changes shipping, ads or bundle composition. This makes it easier to identify what caused contribution to move.
Check the changed-cost scenario
Set a minimum acceptable contribution before choosing the discount. A sale can increase orders while lowering the amount left on each order, so estimate both total contribution and the operational load. The calculator models one order; it cannot forecast how many buyers a coupon will bring.
| Input or result | Value |
|---|---|
| Baseline order revenue | 35 |
| Baseline contribution | 14.225 |
| 10% item discount: revenue | 32 |
| Discounted contribution | 11.51 |
| Contribution decrease | 2.715 / about 19.09% |
The shipping charge stays 5 in this comparison, while only the 30 item price is discounted. If the promotion also adds free delivery or attributed ads, change those rows in a second scenario; the simple discount example no longer describes that offer.
Use the example with your own inputs
Keep shipping and ad assumptions consistent across the comparison. A promotion changing both the discount and shipping needs its own complete scenario, not a single percentage subtraction.
Etsy Fee & Profit Calculator | PourMarginScope and source checks
These are planning examples, not actual seller results. Keep currency, tax basis and cost allocation consistent. Enter your own figures and reconcile with your records; tax, demand, refunds and unlisted business costs can change the outcome.
Fee source reviewed 14 October 2026: Etsy fee documentation. US processing assumptions are 3% + 0.25; other countries differ. Check Etsy payment-processing country rates.