Guides

Short explanations of the numbers behind a profitable price, each with a worked example you can repeat in the calculators.

• Margin vs markup: the difference, the formulas and a conversion table

  Margin is profit as a share of the price; markup is profit as a share of the cost. Why mixing them up underprices products, with a worked example.

• How to calculate VAT-inclusive prices (and take VAT back out)

  To remove VAT from a gross price, divide by 1 plus the rate — don't subtract the rate. Formulas, worked examples and how VAT changes marketplace fees.

• Break-even ROAS: the lowest return on ad spend that still makes money

  Break-even ROAS is your price divided by your profit before ads. A worked example, why a ROAS of 3 can still lose money, and how VAT changes the number.

• Etsy fees explained: what you really keep from a sale

  Etsy's transaction, payment and listing fees with a worked US example, how the fees change by your bank country, and what to add for Offsite Ads.

• How to price a product so it's actually profitable

  Why a 67% markup can leave under 4% margin once VAT, fees and returns are paid, and how to work out the break-even and target price step by step.