1,175 is the example result. Read it using the units and relationship stated below.
Etsy Net Payout uses orders, average order, product cost per order.
Protecting contribution before accepting a price
For etsy net payout, the relationship is Contribution = units × selling price × (1 − fee% ÷ 100) − units × (unit cost + shipping per unit) − ad spend − other costs. The amount depends on the supplied orders, average order, rather than a live market price or a value imported from another record. A quote can meet a revenue target and still leave too little to cover delivery. Separate the selling-price denominator from the cost denominator: margin and markup answer different questions. A discount changes contribution even when the supplier cost stays fixed.
What the model includes
Contribution = units × selling price × (1 − fee% ÷ 100) − units × (unit cost + shipping per unit) − ad spend − other costs. A pricing review should retain the supplier cost, sale price and the reason for any allowance. Returns, payment charges, delivery and tax require explicit treatment; they should not disappear inside a percentage labelled profit. Compare the proposed price with the customer agreement and delivery capacity. A mathematically achievable margin does not establish that buyers will accept the offer.
Example with the supplied inputs
Orders: 100; Average order: 30; Product cost per order: 10; Combined fees (%): 10; Seller shipping: 4; Ads spend: 100; Other costs: 25. Result: 1,175. The values are illustrative.
Compare one changed input
Orders changes from 100 to 110. The result becomes 1,305. All other inputs remain fixed.
Calculation rule
Contribution = units × selling price × (1 − fee% ÷ 100) − units × (unit cost + shipping per unit) − ad spend − other costs.
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Orders | 100 | Use the source quantity represented by orders. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Average order | 30 | Use the source quantity represented by average order. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Product cost per order | 10 | Use product cost per order on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| Combined fees (%) | 10 | Enter combined fees (%) on the percentage scale used in the formula (20 means 20%, not 0.20). Keep its base and reporting period consistent with the other inputs. |
| Seller shipping | 4 | Use the source quantity represented by seller shipping. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Ads spend | 100 | Use ads spend on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| Other costs | 25 | Use other costs on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
Output: 1,175 is the example result. Read it using the units and relationship stated below. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Orders, Average order, Product cost per order. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Orders on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 1,175.
Change Orders from 100 to 110 while keeping every other value fixed. The result becomes 1,305. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.
Content updated: October 11, 2026