Etsy's dashboard shows revenue, not profit. For each order you actually keep: price (incl. VAT) - VAT owed - transaction fee (6.5%) - payment processing fee (~4% + fixed) - listing fee (0.20 USD) - offsite ads fee (12-15% if it applies) - shipping you pay - materials/time.
- Strip VAT out of the buyer price: net = gross / (1 + VAT rate). The VAT part is not your money.
- Apply Etsy fees to the amount Etsy charges them on (item + shipping, and often VAT too - check your statement).
- Subtract cost of goods and shipping.
- Divide by net price to get true margin per product, then reprice anything under about 20%.
- Keep monthly totals per country: VAT is due where the buyer is (EU OSS / UK rules).
I built a spreadsheet that does this per order and per month (Excel/Google Sheets, EUR 8.99): https://www.etsy.com/listing/4600851427
Not tax advice - check your local rules.
