How Etsy Ads cost you money
Etsy Ads place your listings in paid spots in Etsy search. You set a daily budget and Etsy charges you for each click on an ad, up to that budget. A click is paid for even if the shopper leaves without buying, so what matters is how many clicks it takes to get one order.
Break-even cost per click = profit per order × conversion rate
ROAS = order value × conversion rate ÷ cost per click
Break-even ROAS = order value ÷ profit per order
Example
You make $12 on a $30 order after Etsy's fees and your costs. Your ads cost $0.40 a click and 2.5% of clicks buy.
| Line | Amount |
|---|---|
| Clicks needed for one order (1 ÷ 2.5%) | 40 |
| Ad cost per order (40 × $0.40) | $16.00 |
| Profit per order before ads | $12.00 |
| Profit per ad order | −$4.00 |
| Break-even cost per click ($12 × 2.5%) | $0.30 |
| ROAS ($30 ÷ $16) against break-even ROAS ($30 ÷ $12) | 1.88x against 2.50x |
With a $5 daily budget that is 12.5 clicks and about 0.31 orders a day: $150 of ads in 30 days for about 9.4 orders, a loss of $37.50 on those orders.
Break-even click cost at a glance
| Profit per order | 1% convert | 2% | 3% | 5% |
|---|---|---|---|---|
| $5 | $0.05 | $0.10 | $0.15 | $0.25 |
| $10 | $0.10 | $0.20 | $0.30 | $0.50 |
| $20 | $0.20 | $0.40 | $0.60 | $1.00 |
| $40 | $0.40 | $0.80 | $1.20 | $2.00 |
Reading your own numbers
- Find the real profit per order first. Use the Etsy fee calculator; the number you want is the profit before any ad spend.
- Judge listings one by one. Etsy shows spend, clicks and orders per listing. Turn off listings whose click cost is above their break-even.
- Cheap items rarely carry ads. A $5 profit needs clicks under about $0.15 at a 3% conversion rate.
- Etsy Ads are not Offsite Ads. Etsy Ads are paid per click on Etsy itself. Offsite Ads are a 12% or 15% fee, only charged when an order comes from an ad on another site.
This calculator uses only your own numbers; it contains no Etsy rate. For the wider idea, see the break-even ROAS calculator.
Frequently asked questions
Are Etsy Ads worth it?
Only when your cost per click is below your profit per order multiplied by your conversion rate. With $12 profit and a 2.5% conversion rate, clicks must cost less than $0.30.
How do I find my conversion rate for Etsy Ads?
In the Etsy Ads dashboard, divide the orders from ads by the clicks on ads for the same period. Use at least a few hundred clicks, because small samples swing a lot.
What is a good ROAS for Etsy Ads?
One above your break-even ROAS, which is your order value divided by your profit per order before ads. If you keep $12 from a $30 order, you need more than 2.5x.
Do I pay for clicks that do not buy?
Yes. Etsy Ads are charged per click. That is why the cost per order is the click cost divided by the conversion rate.
Last reviewed: November 2026 · By Muhammad Shujah Uddin Qazi · How we check rates · Fee changes tracker