Etsy Seller Fee Calculator
Net profit per sale after all Etsy fees, shipping, and production costs.
Understanding Etsy Fees (2026)
Etsy charges a $0.20 listing fee per item (lasts 4 months or until sold), a 6.5% transaction fee on the sale price including shipping, and a 3% + $0.25 payment processing fee. On a $30 item with $5 shipping: listing $0.20 + transaction $2.28 + processing $1.30 = $3.78 total fees (10.8% of revenue). Etsy Ads and Offsite Ads add 12-15% more if used. Many sellers are surprised by the true fee burden — it is significantly higher than the often-quoted 6.5%.
Pricing Strategy for Etsy Sellers
To maintain a 50% profit margin after Etsy fees, materials, and shipping: multiply your material cost by 3.5-4x for the listing price. A $5 material cost item should list for $17.50-20. Include shipping in the price (Etsy penalizes listings with separate shipping in search rankings). Factor in your time at a reasonable hourly rate — many handmade sellers undervalue their labor, pricing items below minimum wage when time is included.
Etsy raised its transaction fee from 5% to 6.5% in 2022. Combined with payment processing, sellers effectively pay ~10% to Etsy on every sale before production costs. High-margin items ($40+) remain profitable; low-margin items often aren't.
