Payment Reserve Calculatorv1.0.0

Online marketplaces often hold a percentage of seller revenue in reserve to cover potential refunds, chargebacks, and disputes. This calculator helps you understand how much of your monthly sales will be immediately available and how much will be held back. Plan your cash flow, identify potential shortfalls, and compare reserve policies across different selling platforms.

• Select your Marketplace from the dropdown menu. Choosing a marketplace automatically sets the typical reserve percentage and hold period for that platform. Select "Custom" to enter your own values.
• Enter your Monthly Expected Sales ($) as your total revenue before any fees or reserves. You can type decimals, fractions like 3/4, or values with dollar signs and commas. The calculator will parse them automatically.
• Review or adjust the Reserve Percentage (%) field. Etsy typically sets this to 75% for new sellers, Amazon to around 50%, and eBay to 100% for brand-new accounts. Your actual reserve may differ based on your account history and performance.
• Review or adjust the Hold Period (Days) field. This is the number of days the marketplace holds your reserved funds before releasing them. Etsy uses 45 days, Amazon uses 14 days, and eBay uses 21 days by default.
• Enter your Monthly Business Expenses ($) to calculate your cash gap. This is the amount you need to cover materials, shipping supplies, and other costs each month.
• Click Calculate or simply wait for the automatic calculation to update results as you type.
• Review the Cash Flow Breakdown section to see your reserved amount, immediately available funds, cash availability score, estimated daily release after the hold period ends, and any cash gap between your expenses and available funds.
• Open Settings and enable Show step-by-step breakdown to see the formulas and arithmetic behind each result.
• The formulas used are: Reserved Amount = Monthly Sales x (Reserve Percentage / 100), Immediate Available = Monthly Sales - Reserved Amount, Cash Availability Score = (Immediate Available / Monthly Sales) x 100, Daily Release Estimate = Reserved Amount / Hold Period, and Cash Gap = Monthly Expenses - Immediate Available.

Marketplace sellers across many industries use payment reserve calculations to ensure they have enough working capital to keep their business running while platforms hold a portion of their earnings. Below are practical scenarios where this calculator provides actionable insight.

• New Etsy Sellers: A handmade jewelry seller expecting $2,000 in monthly sales can calculate that Etsy will hold $1,500 in reserve at 75%, leaving only $500 immediately available. Knowing this in advance helps the seller budget for material costs during the first 45-day hold period.
• Amazon FBA Sellers: A seller shipping products through Fulfillment by Amazon can estimate cash flow with a 50% reserve over 14 days. Comparing this to other platforms helps decide where to list products first.
• Multi-Platform Sellers: A seller operating on both Etsy and eBay can switch between marketplace presets to compare which platform ties up more capital and plan inventory purchases accordingly.
• Seasonal Business Planning: A holiday ornament seller expecting $10,000 in December sales can use the calculator to determine whether the $2,500 immediately available (at 75% reserve) will cover the $4,000 in material and shipping expenses, revealing a $1,500 cash gap that requires savings or a line of credit.
• E-commerce Startups: A new seller evaluating which marketplace to launch on can compare reserve policies side by side. Shopify charges no reserve by default, while eBay may hold 100% for new accounts, making Shopify a better choice for sellers with limited starting capital.
• Financial Planning: A seller preparing a business plan can use the daily release estimate to project when reserved funds will become available and build a realistic cash flow timeline for investors or loan applications.