What are the five fees in every Etsy sale?

Every Etsy sale can trigger up to five fees: (1) $0.20 listing fee per item published or renewed, (2) 6.5% transaction fee on item price plus shipping, (3) payment processing fee varying by country (3% + $0.25 in the US), (4) Offsite Ads fee of 12% or 15% on ad-attributed orders only, and (5) regulatory operating fee for non-US sellers ranging from 0.29% to 2.27% depending on country.

How much does Etsy take on a $30 sale in 2026?

On a $30 sale (US seller, $25 item + $5 shipping, no Offsite Ads): listing fee $0.20 + transaction fee $1.95 (6.5% of $30) + payment processing $1.15 (3% + $0.25) = $3.30 total, an 11% effective rate. If the sale is attributed to Offsite Ads at 15%, add $4.50 more, bringing total fees to $7.80 and the effective rate to 26%.

Why do small Etsy orders have higher effective fee rates?

The $0.20 listing fee and the $0.25 flat payment processing component do not scale down with lower sale prices. On a $6 sticker the effective rate is about 17%, versus 11% on a $30 order. The flat components represent a larger proportion of revenue as order value decreases.

Is Etsy or Shopify cheaper for sellers in 2026?

Etsy is cheaper at low sales volumes because there is no mandatory monthly fee. Shopify becomes cheaper at roughly $500-700 per month in sales because its flat subscription plus 2.9% + $0.30 processing beats Etsy's stacked fees of 6.5% transaction + 3% + $0.25 processing + $0.20 listing. Once Etsy's mandatory Offsite Ads kick in at $10K+ annual revenue, Shopify is more cost-effective at virtually any volume.

What are Shopify's fees in 2026?

Shopify Basic costs $29/month. Payment processing with Shopify Payments is 2.9% + $0.30 per transaction. There are no listing fees and no transaction fees if you use Shopify Payments. The Shopify plan is $79/month (2.6% processing) and Advanced is $299/month (2.4% processing).

What is the breakeven point between Etsy and Shopify?

For a typical seller with $25-$30 average order value, the breakeven is roughly $500-700 per month in sales. Below that, Etsy's no-subscription model costs less overall. Above that, Shopify's lower per-transaction fees outweigh the monthly subscription cost. Use the Etsy fee calculator above to model your specific numbers.

What is a good profit margin for Etsy sellers?

Most experienced Etsy sellers target 30-50% net margin after all fees and material costs. Below 20% is considered a loss risk because there is no buffer for returns, discounts, Etsy Ads spend, or slow seasons. Price assuming Offsite Ads will apply eventually (12% fee) even if you are currently under the $10K threshold.

Should I include shipping in my Etsy price?

Etsy's algorithm favors free shipping listings. If you offer free shipping, build the label cost into your item price — and also build in the Etsy fees on that higher item price, since the 6.5% transaction fee and 3% processing fee both apply to the full order value. The etsyfeecalc pricing calculator handles this math automatically.

How do I price for Offsite Ads on Etsy?

If your shop earns $10,000+ in trailing 12-month revenue, the 12% Offsite Ads fee is mandatory on attributed sales. Price all products as if every sale will carry this fee. For sellers under $10K who have opted out, price with a buffer — the lock-in is permanent once you cross the threshold.

How do I price handmade items on Etsy?

Total your materials, labor at a real hourly rate, and packaging, then divide by one minus your target margin minus Etsy's combined fee rate. This calculator runs that with your country's exact 2026 rates, including fees charged on shipping.

What is the Etsy product pricing formula?

Price = (Costs + $0.20 listing fee + payment processing flat fee + fee rate times shipping) divided by (1 minus target margin minus combined fee rate). The combined fee rate is the 6.5% transaction fee plus your country's payment processing percentage, plus Offsite Ads and regulatory fees if they apply.

Should I include shipping in my Etsy price?

Treat charged shipping as a pass-through covering your shipping cost, and remember Etsy takes 6.5% plus payment processing on the shipping amount too. This calculator builds that leakage into your item price.

What is the 100% markup rule on Etsy?

Doubling your total cost is a common starting point, roughly a 50% gross margin before fees. Use the margin slider to model your real target precisely.

Etsy pricing calculator.

Start from your costs, not a guess. Enter materials, labor, and your target margin — get the exact listing price after every 2026 Etsy fee, including the ones on shipping.

Materials per item

Packaging optional

Labor hours

Hourly rate

Shipping you charge $0 if free

Your country

Target profit margin

30%

Price for Offsite Ads sales?

Recommended list price

$0.00

to hit your 30% margin after all fees

Profit per sale

$0.00

Etsy takes

$0.00

Where every dollar of your price goes

Costs$0.00

Fees$0.00

Profit$0.00

Listing fee$0.20

Transaction fee (6.5%)$0.00

Payment processing$0.00

Offsite Ads fee$0.00

Regulatory operating fee$0.00

Total Etsy fees$0.00

How to price Etsy products profitably

Most sellers price backward: check competitors, pick a number that feels right, then find at payout that the fee stack ate the margin. Profitable pricing runs the other way. Start from what each item costs to make — materials, labor at a real hourly rate, packaging — then build the price so your target margin survives after fees, not before.

The trap: Etsy's fees are a percentage of the price you're solving for. Raise the price, the fees rise too. That's why "cost times 2" drifts off target — it ignores that the 6.5% transaction fee and payment processing both scale with the final number, and both also hit the shipping you charge.

The Etsy product pricing formula

Price = (Costs + $0.20 + processing flat + fee rate × shipping) ÷ (1 − margin − fee rate)

Where fee rate is 6.5% transaction plus your country's payment processing percentage (3% US, 4% UK and Eurozone), plus 12–15% Offsite Ads and any regulatory fee if they apply. Costs is materials + labor + packaging per item.

Worked example: $6.00 materials, half an hour of labor at $15/hr ($7.50), $0.75 packaging, $5.00 shipping, US seller, 30% target margin. Combined fee rate 9.5%. The formula returns $25.08 — and the math closes: Etsy takes $3.31, costs are $14.25, you keep $7.52, exactly 30% of price. The 100% markup rule would have said $28.50; the formula tells the truth for your target.

What margin should you target?

20% net is the survival floor most experienced sellers cite. 30% is growth territory. Premium and personalized products hold 40–50%. If the calculator flags red, the margin isn't achievable at those costs — raise the product's value or cut the cost base.

Pricing calculator vs. fee calculator

Same math, opposite directions. A fee calculator starts from a price you chose and shows what Etsy keeps — that's our Etsy fee calculator, for auditing existing listings. This pricing calculator starts from costs and margin and finds the price. New listing? Start here. Existing listing you suspect is underwater? Start there.

FAQ

Most established handmade sellers target 30% net after all fees and costs. 20% is the survival floor; premium or personalized products can sustain 40–50%. Print-on-demand typically nets 15–35%.

Total your materials, labor at a real hourly rate, and packaging. Divide by (1 − target margin − combined fee rate). The calculator above runs this with your country's exact 2026 rates, including fees on shipping.

Doubling total cost is a common starting heuristic, roughly 50% gross margin before fees. A fine sanity check, but it doesn't adapt to your country's rates or Offsite Ads. The formula here replaces the guess with your numbers.

Offering free shipping? Set shipping to $0 and add your shipping cost into materials — the calculator bakes it into the item price. Charging shipping? The tool accounts for Etsy's fees on the shipping amount so it nets out.

Every percentage fee compounds: a 30% margin with a 9.5% fee rate leaves only 60.5% of price for costs. Toggle Offsite Ads on to see how a 12–15% ad fee forces the price up — pricing for that in advance is how sellers survive the $10K mandatory enrollment.