eBay Ad Rate & Profit Calculator
Calculate your Promoted Listings fees and Net Profit instantly.
How to Calculate eBay Promoted Listings Costs
Using eBay Promoted Listings Standard allows sellers to boost visibility by paying a percentage of the final sale price. However, understanding exactly how this impacts your bottom line is crucial. Unlike a flat fee, the ad rate is a percentage applied to the total sale amount (including shipping and taxes, though this calculator estimates based on Price + Shipping).
Understanding the Inputs
- Selling Price: The amount the buyer pays for the item itself.
- Shipping Charged: The amount the buyer pays for shipping. eBay fees and Ad fees apply to the sum of Price + Shipping.
- Final Value Fee (FVF): The standard commission eBay takes per sale, typically ranging from 10% to 15% depending on the category (default is roughly 13.25%).
- Ad Rate: The percentage you choose to bid for Promoted Listings. If you set this to 7%, you pay an additional 7% on the total sale amount only if the item sells via the ad.
Is the Ad Rate Worth It?
The "Break-Even" point for ad spend depends entirely on your profit margin. If your item has a 50% profit margin, paying a 10% ad rate still leaves you with a healthy 40% margin. However, for low-margin items (e.g., 15% margin), a high ad rate can instantly turn a profit into a loss.
Strategy Tip: Start with the "Suggested Ad Rate" provided by eBay but cap it based on your calculated margin limits. Often, bidding slightly below the suggested rate still yields significant impressions without eroding all your profit.