2026 tax year
Seller profit calculator
Your sales total isn't your income. Cost of goods, fees and shipping come out first.
Selling on Etsy, eBay, Shopify or any marketplace, your taxable income is profit, not revenue. Cost of goods sold, platform and payment fees, and shipping all come off first, then self-employment tax and income tax apply to what is left. This shows your profit, your margin, and your real take-home.
Materials, or what you paid to resell.
Enter your sales and costs.
Worked example, $50,000 in sales
An Ohio seller does $50,000 in sales with $15,000 cost of goods, $5,000 in fees, $2,000 shipping and $1,000 other costs:
| Line | Amount |
|---|---|
| Revenue | $50,000 |
| Total expenses | − $23,000 |
| Net profit | $27,000 |
| Net margin | 54.0% |
| Self-employment + income tax | − $4,534 |
| Take-home | $22,466 |
The $50,000 of sales is really $27,000 of profit, a 54.0% margin. And $22,466 of take-home after tax. Being taxed on revenue instead of profit would roughly double the bill, which is why tracking cost of goods sold matters more than any other number here.
Questions
What is cost of goods sold for a seller?
What the items you sold cost you. For resale it is the purchase price; for handmade goods it is materials (and sometimes a labor allocation); for print-on-demand it is the base product cost. It is deducted only when the item sells, and it is usually a seller's largest deduction.
Are platform fees deductible?
Fully. Etsy listing and transaction fees, eBay final-value fees, Shopify subscription and payment processing, Amazon referral and FBA fees, all are 100% deductible business expenses. So are shipping supplies and postage.
Do I owe tax if I sold personal items?
Selling your own used things at a loss is not taxable and the loss is not deductible. Selling them at a gain is taxable. Buying to resell is a business, that is what this calculator models. If your 1099-K mixes personal and business sales, separate them.
Why is my 1099-K higher than my profit?
Because it reports gross payments, including the fees, refunds and shipping that never became profit. Reconcile it down with the 1099-K calculator so you are taxed on profit, not on money that passed through.
Related tools
- 1099-K reconciliation calculator
- Gig tax by category sellers, drivers, creators
- Quarterly tax calculator paying as you go
Estimate for the 2026 tax year using the standard deduction. Pick your state for the state tax line. Not tax advice.