Total eBay Fees: $ 0.00
Total Expenses: $ 0.00
Profit Margin: 0%
eBay Calculator Use
Selling on eBay involves more than just picking a price. To be a successful seller, you need to understand your true margins after eBay takes its cut. This ebay calculator helps you break down every cost associated with a sale, including final value fees, promoted listing costs, and shipping expenses.
Whether you are a casual seller cleaning out your garage or a professional with a dedicated eBay Store, this tool ensures you don't lose money on a deal by overlooking the "hidden" costs like the per-order fixed fee or fees charged on sales tax.
- Item Sold Price
- The final amount the buyer pays for the item itself.
- Shipping Charged to Buyer
- The amount you collect for shipping. Note: eBay charges fees on this total.
- Item Cost (COGS)
- What you originally paid for the item (Cost of Goods Sold).
- eBay Fee Rate
- The percentage eBay takes based on your category (typically 13.25% for most items).
How It Works
The ebay calculator uses the Managed Payments fee structure. Unlike the old system where PayPal and eBay charged separately, the modern system uses a consolidated Final Value Fee. The basic formula for your profit is:
Profit = (Sold Price + Shipping Collected) – (eBay Fees + Shipping Label Cost + Item Cost)
Key variables used in the calculation:
- Final Value Fee (FVF): Calculated as a percentage of the total amount of the sale, including the item price, shipping, and sales tax.
- Per-Order Fee: A flat $0.30 to $0.40 fee charged on every unique order.
- Promoted Listing Fee: An optional fee if you use eBay's advertising services to boost visibility.
- Tax Impact: Because eBay calculates fees on the total price including tax, we include an optional 8% estimate to reflect the "real world" fee basis.
Calculation Example
Example: You sell a vintage camera for $100 and charge the buyer $10 for shipping. Your original cost for the camera was $40, and the actual shipping label costs you $9.50. You are a standard seller (13.25% fee).
Step-by-step solution:
- Total Revenue: $100 + $10 = $110.00
- eBay FVF (13.25% of $110): $14.58
- Fixed Fee: $0.30
- Total eBay Fees: $14.58 + $0.30 = $14.88
- Total Expenses: $40 (Cost) + $9.50 (Ship) + $14.88 (Fees) = $64.38
- Net Profit: $110.00 – $64.38 = $45.62
- Profit Margin: ($45.62 / $110.00) = 41.47%
Common Questions
Does eBay charge fees on sales tax?
Yes. One of the most common surprises for new sellers is that eBay calculates the Final Value Fee based on the total amount paid by the buyer, which includes the item price, shipping service, and any applicable sales tax collected by eBay. This means your effective fee percentage is slightly higher than the stated rate when tax is included.
How can I lower my eBay fees?
The best way to lower fees is to become a "Top Rated Seller," which offers a 10% discount on final value fees. Additionally, opening an eBay Store (Starter, Basic, or Premium) can reduce your FVF percentages in specific categories from 13.25% down to 8% or 12%, depending on the subscription level and category.
Is shipping cost tax deductible?
In most jurisdictions, the cost you pay for shipping labels and packaging materials are considered business expenses. While our ebay calculator helps you see your net profit, you should consult a tax professional to understand how these deductions affect your annual income tax filings.