How to use this calculator
Start by entering your item selling price and any shipping amount you charge the buyer. Then fill in your actual costs: what you pay for shipping, materials or supplies to make the item, and packaging per unit. The calculator applies all Etsy fees automatically.
If you participate in Etsy Offsite Ads, toggle that option on to see how the additional 15% fee affects your profit. Keep in mind this fee only applies to sales that come through offsite advertising, so your actual average may be lower.
To compare multiple products, click the add button to enter up to five items. The calculator ranks them by profit margin and marks the most profitable one with a badge. Enter your target monthly income at the top to see how many units of each product you would need to sell per month.
Understanding Etsy's fee structure
Etsy charges sellers three core fees on every transaction. The listing fee is a flat $0.20 charged when you publish a listing and again each time the item sells or the listing renews. The transaction fee is 6.5% of the total order amount, which includes both the item price and the shipping you charge. The payment processing fee is 3% of the order total plus a flat $0.25 per transaction.
There is also an optional (or sometimes mandatory) Offsite Ads program. Etsy advertises your products on Google, Facebook, and other platforms. If a buyer clicks one of those ads and purchases within 30 days, you pay an additional 15% of the order total. Sellers earning more than $10,000 per year are automatically enrolled and cannot opt out, though their rate drops to 12%.
All of these fees are deducted from your payment before Etsy deposits the remaining balance into your bank account. This is why many sellers are surprised by how much lower their actual take home is compared to the listed price. Using a calculator like this one before setting prices helps you avoid selling at a loss.
How to price your items for profit
A common pricing formula for handmade goods is to multiply your total material and labor costs by two or three. While this is a reasonable starting point, it does not account for platform fees. On Etsy, fees can consume 10% to 25% of your selling price depending on whether offsite ads apply. Always calculate your actual profit after fees before committing to a price.
Consider the shipping strategy carefully. Offering free shipping can improve your search ranking on Etsy, but it means you absorb the full shipping cost. If you charge for shipping separately, Etsy still takes transaction and processing fees on that amount. Run both scenarios through this calculator to see which approach leaves you with more profit.
If your margin is below 20%, look for ways to reduce costs before raising prices. Buying materials in bulk, using lighter packaging, and negotiating better shipping rates can all improve your bottom line without affecting the buyer experience.
Frequently asked questions
What fees does Etsy charge sellers per sale?
Etsy charges three main fees per sale: a $0.20 listing fee, a 6.5% transaction fee on the total order amount (item price plus shipping), and a payment processing fee of 3% plus $0.25. If you participate in Etsy Offsite Ads and a sale comes through one of those ads, an additional 15% fee applies.
Does Etsy charge fees on shipping?
Yes. Etsy's 6.5% transaction fee and the 3% payment processing fee are both calculated on the total order amount, which includes the shipping price you charge the buyer. This is why some sellers build shipping costs into the item price and offer free shipping instead.
What is a good profit margin for Etsy sellers?
Most successful Etsy sellers aim for a profit margin between 30% and 50% after all fees and costs. Margins below 20% leave very little room for unexpected expenses or price fluctuations. Higher priced items generally achieve better margins because the fixed fees represent a smaller share of the total.
How do Etsy Offsite Ads affect my profit?
If you are enrolled in Etsy Offsite Ads and a buyer clicks an external ad before purchasing from your shop, Etsy charges an additional 15% of the total order amount. Sellers with less than $10,000 in annual revenue can opt out. Sellers above that threshold are automatically enrolled at a reduced 12% rate.