Etsy Seller Fee and Profit Calculator

How Etsy fees work

Four separate charges land on an Etsy sale. Three of them are percentages of the order total including the shipping you collected, which is the part sellers miss when they add the fees up in their heads.

Listing fee

$0.20 per item listed. It is charged when you list, and charged again every time the listing sells and auto-renews, so a listing that sells ten times has cost you $2.20 rather than $0.20.

Transaction fee

6.5% of the total sale amount, and that total includes the shipping you charge the buyer. Charge $6 of shipping and Etsy takes 39 cents of it.

Payment processing fee

3% + $0.25 of everything the buyer is charged, sale price plus shipping. This applies when using Etsy Payments, which is mandatory in most countries. The rate differs outside the US, so the box below is an input rather than a constant.

Offsite Ads fee

If a buyer reaches your listing through an ad Etsy bought on Google, Facebook, Pinterest or Instagram, Etsy bills you a share of that sale. 15% for shops with under $10,000 of sales in the past year, 12% for shops above it. The larger shops pay the lower rate and cannot opt out; the smaller ones pay more and can. The fee is charged on the order total including shipping, and it is capped at $100 per order.

That cap is the one piece of good news in the whole arrangement. On a $900 order the 15% would be $135, and you pay $100.

Profit formula

Listing fee: $0.20
Transaction fee: (sale price + shipping charged) × 6.5%
Payment processing: (sale price + shipping charged) × 3% + $0.25
Offsite Ads fee: (sale price + shipping charged) × 15% or 12%, capped at $100
Net profit = sale price + shipping charged − all fees − cost of materials − actual shipping cost

Worked example

A $35 item, $6 shipping charged, $5 actual postage, $8 of materials, no offsite ad:

• Gross revenue: $41.00
• Listing fee: $0.20
• Transaction fee: $41 × 0.065 = $2.665
• Payment processing: $41 × 0.03 + $0.25 = $1.48
• Fees total: $4.345, which the panel rounds to $4.35
• After materials and postage: $41.00 − $4.345 − $8.00 − $5.00 = $23.66, a 57.7% margin

Now let that same sale come through an offsite ad on the 15% rate. Etsy adds $6.15 and the profit drops to $17.51, a 42.7% margin. On the 12% rate the larger shops pay it would be $4.92 and $18.74. That one fee costs more than the materials in a lot of shops, and it is charged whether or not the buyer had ever heard of the ad.

Do not forget the shipping difference

Sellers forget the gap between what they charge and what they pay. Charge $6 and pay $7.50 at the post office and that $1.50 comes out of profit, on top of the 9.5% Etsy already took off the $6 you collected. Always enter both numbers.