United States · Online business costs
Online business cost structures.
Before you ask what a hustle earns, ask what it costs and when. This page maps the cost lines of each model and points to the calculator for each.
Costs come in four shapes: a percentage of each sale, a flat amount per sale or listing, fixed spend before launch, and your unpaid time. This page lists which shapes each model has. It states no income figures and quotes no fee rates.
Cost lines by model
| Model | Typical cost lines | Hidden costs |
|---|---|---|
| Etsy digital downloads | Listing fee; transaction fee; payment processing; offsite ads (some orders) | No product cost; your build time |
| Gumroad / own store digital product | Platform fee; processor fee; possible flat fee | No product cost; your build time |
| Freelancing on Fiverr or Upwork | Service fee taken from each order or payment | Unpaid proposal and admin time |
| Print on demand | Per-item base cost; shipping; platform fee; processor fee | Design time; returns and reprints |
| Dropshipping | Supplier cost; shipping; platform and processor fees; ads | Refunds, chargebacks, customer support |
| Affiliate marketing | Often none per sale; ads or content costs | Time to create content before any commission |
| Local lead generation | Cost per lead; tools; rejected leads | Compliance and consent handling |
| Tutoring and teaching | Platform commission; materials; travel | Unpaid prep, travel and cancelled slots |
The table lists which lines exist, not how large they are. Sizes change by platform and over time, so read the current figure from the official page and put it in a calculator. A line existing does not mean it applies to every seller or plan.
Calculators for each model
- Etsy: Etsy fee calculator, and the Etsy Fees & Payments Policy.
- Gumroad and your own store: Gumroad fee calculator, Gumroad pricing and Stripe pricing.
- Freelance marketplaces: Fiverr fee calculator and Upwork fee calculator.
- Print on demand: print-on-demand profit margin calculator.
- Dropshipping: dropshipping margin calculator.
- Affiliate: affiliate commission calculator and EPC calculator.
- Digital products from this series: break-even, hourly return and the fee stack.
- Lead generation: pay-per-lead profit and the economics guide.
- Tutoring: tutor net hourly rate.
How to read costs before you start
First, separate costs that scale with sales (percentage fees, per-item costs) from costs that do not (listing fees, tools, ad tests). The first kind lowers every sale's margin; the second sets how many sales you need before you are ahead. Second, count your time as a cost line even if you do not pay yourself: an hour of unpaid prep is an hour not spent elsewhere. Third, add a refund and a dispute allowance, since they remove revenue after fees were taken.
Worked example of the method
Take a $30.00 sale with a 10% platform fee, a 2.9% plus $0.30 processor fee and a 5% refund rate (placeholder rates). Fees are $4.17, and net per sale after refunds is $24.33. That is the variable side. If you also spend $100.00 before launch, you need 5 sales just to get back to zero, before counting any of your own hours. Every model has the same two questions: what does each sale cost, and what must be spent or worked before the first one.
Taxes are a cost too
Net profit from self-employment generally attracts self-employment tax on top of income tax. See IRS Topic No. 554, Self-employment tax and our self-employment tax calculator. Platforms may also report payments to the IRS; see the 1099-K threshold by state page.
What this does not cover
- Any claim about what people earn in a model. This page is about costs only.
- Exact current fee rates, which change; use the linked official pages.
- Crypto and gambling, which are outside this series.
- Your own situation: plan, country, volume and category all change which fees apply.
Sources
Retrieved October 2026. The formulas are arithmetic on the numbers you enter. The pages below are where to read the current rules and rates yourself.
- Etsy Fees & Payments Policy: fee structure
- Stripe pricing: processing fees
- Gumroad pricing: platform fees
- IRS Topic No. 554, Self-employment tax: self-employment tax
- 47 CFR 64.1200 (FCC telemarketing and TCPA rules): lead generation consent rules
Results vary. This page models the assumptions you type in. It does not report what anyone earns, predict sales, or promise income. It is general information, not tax, legal or financial advice.
Frequently asked questions
What costs should I count in an online business?
Percentage fees on each sale, flat per-sale or per-listing fees, fixed launch spend, refunds, taxes and your unpaid time.
Which model has the lowest costs?
This page does not rank them. Digital products avoid product cost but cost build time; services avoid inventory but cost unpaid admin time. Use the calculators with your own numbers.
Why are there no fee percentages here?
Rates change and differ by plan, so a stale figure would mislead. Each model links to the official page and a calculator that takes your rate.
Does this tell me what I could earn?
No. It covers costs only, and no income figure is stated.