Running an Etsy shop is exciting—you get to share your creativity with the world and connect with people who love what you make. But let’s be honest… when it comes to the money side of things? It can feel like a hot mess.

Between Etsy’s endless fees, surprise supply costs, and trying to make sense of spreadsheets, most sellers end up wondering: “Am I even making a profit?”

If you’ve ever felt that way, you’re not alone. And the good news is—you don’t need to track everything. You really only need to keep an eye on five simple numbers. These are the ones that will tell you if your shop is actually making money or if it’s quietly draining your wallet.

Let’s break them down (in plain English).

Why Bother Tracking Numbers Anyway?

I know—numbers aren’t why you started your Etsy shop. You just wanted to create, sell, and share your work. But here’s the truth:

Big sales numbers can be misleading if you don’t know your actual profit.
Small expenses (like bubble mailers or listing fees) add up faster than you think.
Without tracking, it’s way too easy to underprice your items or overspend on supplies.

When you do track, you instantly see which products are worth your time, where your money is really going, and whether your shop is helping you reach your goals. It’s not about being a math nerd—it’s about finally having peace of mind.

The 5 Key Metrics Every Etsy Seller Needs

1. Total Sales (Revenue)

This is how much money comes in before you subtract anything. It’s fun to watch sales climb, but remember: high sales don’t always mean high profits.

Think of it like Instagram followers—you can have a big number, but it doesn’t always mean engagement.

2. Expenses (Including Etsy Fees & Materials)

Etsy fees, shipping labels, tape, stickers, thank-you cards—every little thing adds up. A lot of sellers only think about materials and forget these “tiny” costs. But tiny costs can eat your margins alive if you don’t keep tabs on them.

3. Cost of Goods Sold (COGS)

This is just a fancy way of saying: how much does it actually cost to make each product? Yarn, beads, wax, wood—whatever you use, it all counts.

If your product costs $7 to make but you’re selling it for $10, you’re not really making $10—you’re only making $3. And that’s before Etsy takes their cut.

4. Profit Margin

This number shows how much of each sale you actually keep. It’s the truth teller.

Example: You make $1,000 in sales. Sounds great, right? But if only $300 is profit after fees and expenses, that changes the story.

Knowing what you make in the end helps you spot which products are worth your time and which ones are secretly draining you.

5. Monthly Net Profit

This is the one that really matters: the money left after everything is paid for. Net profit is what pays your bills, lets you reinvest in your shop, and gives you breathing room.

It’s the difference between “yay, I’m running a business!” and “yikes, I’m running a very expensive hobby.”

Okay… But How Do You Track All This Without Going Crazy?

This is where most Etsy sellers get stuck. Etsy’s monthly reports are messy, and trying to build your own spreadsheet usually ends with you staring at a screen, wishing you were making products instead of formulas. That’s exactly why I created the Etsy Seller Financial Tracker.

Here’s what it does for you:

You enter sales + expenses → everything else updates like magic.
Colorful dashboards show your profit, margins, and monthly totals.
No accounting jargon, no complicated math—just the info you actually need.

It’s like having a money-clarity buddy built into your shop.

Meet Your New Favorite Etsy Tool

At Butter Business Solutions, we’re all about making business finances less overwhelming and way more doable. The Etsy Seller Financial Tracker is designed to be simple enough for beginners but powerful enough to keep up as your shop grows.

✅ Track sales, expenses, and product costs with ease
✅ See your real profit per product and per month
✅ Instantly know what to set aside for taxes
✅ Make confident decisions without guesswork

👉 Grab the Etsy Seller Financial Tracker here and finally feel in control of your shop’s money.

Final Thoughts

Your creativity deserves to be profitable. By keeping an eye on just five simple numbers—sales, expenses, COGS, profit %, and net profit—you’ll know exactly how your shop is doing.

No more guessing. No more crossing your fingers on payday. Just clarity, confidence, and control.

That’s the Butter Business way—helping small business owners turn their “bread and butter” into something they can actually live on.

5 Key Metrics Every Etsy Seller Should Track to Grow Profits