Etsy Ads ROI Calculator

Calculate your Etsy Ads return on investment. See if your ad spend is actually profitable after all Etsy fees and costs.

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Ad Campaign Settings

Find this in your Etsy Ads dashboard under "Avg. CPC"
Orders from ads / Clicks from ads. Typical: 1-5%

Product Economics

Your typical sale amount including shipping
(Price - Materials - Labor) / Price. Don't include Etsy fees here.
💡Calculate Your Complete Etsy Costs

Ads are just one cost. Make sure you know your full fee structure:

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Listing Fee Calculator
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How to Use This Calculator

Calculate whether your Etsy Ads are actually profitable:

  1. Enter your daily ad budget (what you set in Etsy Ads).
  2. Input your average cost per click (CPC) from Etsy Ads dashboard.
  3. Add your conversion rate (sales / clicks, typically 1-5% on Etsy).
  4. Enter your average order value from your shop stats.
  5. Input your profit margin BEFORE Etsy fees (materials + labor markup).
  6. Click 'Calculate ROI' to see if your ads are making or losing money.

Why This Matters

Many Etsy sellers run ads without knowing if they're actually profitable. With Etsy's complex fee structure layered on top of ad costs, it's easy to spend money on ads that generate sales but lose money overall. Understanding your true ROI helps you optimize ad spend, set appropriate budgets, and know when to pause underperforming campaigns.

  • Know if your ads are truly profitable after all fees
  • Calculate your break-even CPC and conversion rate
  • Understand cost per acquisition vs. profit per sale
  • Make data-driven decisions about ad budget
  • Identify when to scale up or pause campaigns

Worked Examples

Profitable Campaign

$5/day budget, $0.30 CPC, 3% conversion, $40 AOV, 50% margin.

Calculation: ~17 clicks/day, ~0.5 sales/day, $20 revenue, $10 gross profit
Result: After $5 ads + ~$2 Etsy fees = ~$3 net profit/day. ROAS: 4x. Keep it running!

Break-Even Campaign

$10/day budget, $0.50 CPC, 2% conversion, $35 AOV, 40% margin.

Calculation: 20 clicks/day, 0.4 sales/day, $14 revenue, $5.60 gross profit
Result: After $10 ads + ~$1.50 fees = -$5.90/day. ROAS: 1.4x. Needs optimization!

Losing Campaign

$15/day budget, $0.80 CPC, 1% conversion, $25 AOV, 35% margin.

Calculation: ~19 clicks/day, 0.19 sales/day, $4.75 revenue, $1.66 gross profit
Result: After $15 ads + ~$0.50 fees = -$13.84/day. ROAS: 0.3x. Pause immediately!

Common Mistakes to Avoid

  • Looking only at ROAS without accounting for Etsy's fees on those sales.
  • Setting budgets based on revenue instead of profit - high sales can still lose money.
  • Not tracking conversion rate over time - it fluctuates seasonally.
  • Running ads on low-margin items where CPA exceeds profit per sale.
  • Expecting immediate results - Etsy's algorithm needs 2-4 weeks to optimize.

Frequently Asked Questions