How do I use an eBay profit calculator?
The profit formula
Profit starts with the total the buyer pays, which includes the item price and any shipping you charge. From that total, subtract eBay's fees, the postage you actually pay, packing materials, and the cost of the item you bought. The result is your net profit for that sale.
Leave out costs that are not tied to the sale, such as a general phone bill. Include small costs like tape, bubble wrap, and gas for store runs if you want an honest number. Many resellers track these in a spreadsheet so nothing gets forgotten.
- Start with the buyer total, including shipping charged
- Subtract the final value fee and per-order fee
- Subtract the postage you pay and any packing supplies
- Subtract what you paid for the item and any repair costs
Using a calculator the right way
Enter the sale price, shipping charged, your buying cost, and your shipping cost. Then compare the output against eBay's current fees. Some calculators use fixed percentages and leave out promoted listing or international fees, so check which costs are included.
Run the numbers before you buy an item, not after. A profit estimate that works at your expected sale price can fall apart if the item sells for less or sits for months. Build in a margin of safety for returns and damaged packages.
Returns and refunds
Refunds can reduce your profit, and fees are not always returned in every case. Check eBay's current refund policies to see how fees are handled when an order is returned or cancelled.
Common mistakes
- Calculating profit from the item price alone and skipping shipping and fees.
- Forgetting packing supplies, which add up across many orders.
- Trusting a calculator that leaves out promoted listing or international fees.
Related questions
- How do I price items I find at thrift stores for resale?
- How much should I pay for items to flip for profit?
- What is a good profit margin for flipping thrift store finds?
- How do I know if a thrift store item is overpriced?
- Should I negotiate prices at garage sales?
- How do I calculate fees and shipping when pricing items?