How the eBay profit estimate works
Contribution profit subtracts the modeled or entered eBay fees, item cost, your shipping and packaging cost, and other direct costs.
Formula
Contribution profit = Proceeds after fees − Item cost − Shipping and packaging − Other direct costs
Estimated eBay fees = (Item price + Shipping charged + Sales tax) × category rate + per-order charge
Estimate mode models one US order for most categories, books and magazines, Movies & TV, or Music (excluding vinyl and NFTs); jewelry (excluding watches, parts, and accessories); guitars and basses; or specified heavy equipment categories. It applies the selected category’s final value fee rate and per-order charge to the item price, shipping charged to the buyer, and sales tax. The fee rates reflect eBay’s standard schedule for sellers without an eBay Store or Starter Store discount. A category may have more specific exclusions or separate terms; check eBay’s current fee tables for your listing.
Sales tax collected is included in the final value fee base in this estimate, but excluded from proceeds and the profit-margin denominator. Shipping charged to the buyer is part of sale revenue. Your actual postage and packaging expense is a separate direct cost.
Add promoted listing or other eBay charges as a dollar amount because promotion products and their rates can vary. For a different fee schedule, Store tier, or adjusted order, choose “Enter my actual eBay fee total” and include all eBay selling charges there; that mode does not add the separate charge field.
Contribution profit does not include labor, subscriptions, refunds, currency conversion, income tax, overhead, or every possible seller charge. It is an estimate for planning, not a guaranteed payout or net accounting profit.
Break-even is available in estimate mode. It finds the lowest cent-level item price that covers the costs entered, within the listed fee schedule. The calculation holds sales tax, shipping charged, and entered extra fees constant as the item price changes. Actual tax and promoted listing charges can change with price, and an entered actual fee total cannot predict future fees.
How much does eBay take from a $100 sale?
Suppose an item sells for $100 with $6 in sales tax collected, costs $40, and costs $10 to ship and package. With no shipping charged to the buyer or extra eBay charges, the estimated fee base is $106. At the 13.6% standard category rate plus the 40-cent per-order charge, estimated eBay fees are $14.82. Proceeds after fees, excluding tax, are $85.18. After the $50 of direct costs, contribution profit is $35.18, or 35.2% of the $100 revenue excluding tax.
| Line item | Amount |
|---|---|
| Item price | $100.00 |
| Sales tax collected | $6.00 |
| Estimated fee base (price plus tax) | $106.00 |
| Estimated eBay fees (13.6% + $0.40) | $14.82 |
| Proceeds after fees, excluding tax | $85.18 |
| Direct costs ($40 item + $10 shipping and packaging) | $50.00 |
| Contribution profit | $35.18 |
| Margin on $100 revenue excluding tax | 35.2% |
Check the fee schedule for your account
eBay’s fee tables can vary by category, store subscription, seller status, and listing details. Review the current table and your order’s fee breakdown before using an estimate to set a price. This tool uses the standard rates named above and does not predict promotional, international, or account-specific adjustments.
For help understanding how eBay selling fees work, read our eBay seller fees guide. Once you are ready to reconcile marketplace deposits, see eBay with QuickBooks, Xero, or Wave. Browse our free seller tools for more calculators.
Questions sellers ask
Is sales tax part of the eBay fee base?
In this estimate, yes. Sales tax collected is included in the final value fee base. It is excluded from proceeds and from the profit-margin denominator.
Why enter shipping charged and shipping cost separately?
Shipping charged to the buyer is part of sale revenue. Your actual postage and packaging expense is a separate direct cost.
Is contribution profit the same as net profit?
No. It does not include labor, subscriptions, refunds, currency conversion, income tax, overhead, or every possible seller charge. It is an estimate for planning, not a guaranteed payout or net accounting profit.
Why is break-even unavailable with an actual fee total?
Break-even is available in estimate mode. An entered actual fee total cannot predict future fees, so break-even is unavailable with it.