What Do Etsy Fees Really Cost You?
Etsy's fees are small individually but stack up into a meaningful bite. On a standard US sale you pay a $0.20 listing fee, a 6.5% transaction fee charged on the item price and the shipping you collect, and a payment processing fee of roughly 3% plus $0.25. If your sale came through Offsite Ads, add 12% or 15% on top. This calculator adds all of that, subtracts your material and actual shipping costs, and shows the profit you actually pocket.
The shipping trap
A common mistake is treating shipping as break-even. Etsy charges its transaction fee on shipping you collect, and if the label costs more than you charged, that gap comes straight out of profit. Enter both what you charge and what the label actually costs to see the true picture — many sellers discover free shipping is quietly funded by their margin.
Price for the bad months too
Aim for a margin that survives refunds, the occasional lost package, and slow seasons — not just one perfect sale. A margin under about 25% leaves little room for those realities. If yours is thin, the fix is usually the price, not the fees: fees are largely fixed percentages, so the lever you control is charging enough. Running two forges side by side lets you compare a price bump against a cost cut instantly.
Frequently asked questions
- What percentage does Etsy take?
- Roughly 6.5% transaction plus about 3% + $0.25 payment processing, plus a $0.20 listing fee — more with Offsite Ads.
- Does Etsy charge fees on shipping?
- Yes. The transaction fee applies to the shipping you collect, not just the item price.
- What profit margin should I aim for?
- Enough to absorb refunds and slow months — generally above 25% after all fees and costs.