Does Etsy charge fees on shipping?

Yes. The 6.5% transaction fee applies to both the item price and the shipping amount you charge the buyer. This is one of the most common surprises for new Etsy sellers. If you charge $8 for shipping, Etsy takes $0.52 in transaction fees on that shipping charge alone.

What is the Offsite Ads fee?

Etsy runs ads for your products on Google, Facebook, Instagram, and other platforms. If a buyer clicks one of these ads and purchases within 30 days, Etsy charges a fee on the sale. Shops that earned over $10,000 in the past 365 days pay a mandatory 15%. Shops below that threshold can opt in at 12% or turn it off entirely.

How do I reduce Etsy fees?

The transaction fee (6.5%) and payment processing fee (3% + $0.25) are non-negotiable. Your main levers are: raising your sale price to improve margin after fees, reducing COGS through better sourcing or production efficiency, and charging shipping that covers your actual cost so the shipping delta does not eat into profit.

What payment processing rate should I use?

US sellers pay 3% + $0.25 per transaction through Etsy Payments. Rates vary by country: UK sellers pay 4% + £0.20, Canadian sellers pay 3% + C$0.25, and Australian sellers pay 3% + A$0.25. This calculator uses US rates. Non-US sellers should adjust accordingly.

Can I avoid the Offsite Ads fee?

Only if your shop earned less than $10,000 in the past 365 days. Below that threshold, Offsite Ads are optional and you can opt out in your shop settings. Above $10,000, enrollment is mandatory. Etsy prohibits operating duplicate shops for the same products to circumvent this.

What if my profit is negative?

The calculator displays a warning that you lose money on this listing. Your options are to raise the sale price, reduce material or labor costs, or increase shipping charges to cover your actual carrier costs. Small price increases of $2 to $5 often restore profitability without noticeably affecting sales.

Etsy Profit Calculator (2026 Fee Schedule)

See per-order profit after Etsy’s transaction, listing, and US payment fees, including the shipping line on the transaction fee and Offsite Ads on the item price.

100% client-side. USD model with US payment processing (3% + $0.25 on item price).

Payment processing rates vary by country. This tool uses US rates (3% + $0.25 on the item price, not shipping).

Gross revenue

$40

Item + shipping charged

Total fees

$4.10

Net profit

$21.90

Net margin %

54.8%

Of buyer-paid total

$0$40.00 scale

COGS$10.00
Transaction fee$2.60
Payment processing$1.30
Listing fee$0.20
Offsite Ads fee$0.00
Shipping (buyer-funded postage)$4.00
Shipping delta (subsidy)$0.00
Net profit$21.90

Where the money goes

Gross revenue is item + shipping charged. Net subtracts your costs and Etsy's fees (processing is on the item price only, per US v1).

Item cost (COGS)$10
Postage you pay (carrier)$4
Transaction fee (6.5% of item + shipping charged)$2.60
Listing fee$0.20
Payment processing (US: 3% of item price + $0.25)$1.30
Offsite Ads fee$0
Shipping spread (charged − carrier)+$1

Sale price (USD)$35

Shipping charged to buyer$5

Your actual shipping cost$4

Item cost (COGS)$10

Offsite Ads

Mandatory applies if your shop earned over $10k in the past 365 days , see FAQs.

Margin % uses buyer-paid gross (item + shipping charged).

How this calculator works

Etsy stacks multiple fees on every sale and the calculator adds them up in the same order Etsy does. First, the transaction fee: Etsy takes 6.5% of the total order amount, which includes the item price plus whatever you charge the buyer for shipping. This is the fee new sellers most often underestimate because it applies to the full order value, not just the item. Second, the $0.20 listing renewal fee per unit sold. Third, US payment processing: 3% of sale price plus $0.25. Fourth, Offsite Ads if applicable: 15% mandatory for shops earning over $10,000 in the past 365 days, or 12% if opted in voluntarily. The shipping delta accounts for the gap between what you charge the buyer and your actual carrier cost. Net profit = sale price minus COGS minus total platform fees minus shipping delta.

Worked lens

Handmade ceramic mug. Sale price $35. Shipping charged to buyer $5. Actual shipping cost $4. Item cost $10. Offsite Ads off. Transaction fee: ($35 + $5) x 0.065 = $2.60. Listing fee: $0.20. Payment processing: ($35 x 0.03) + $0.25 = $1.30. Total fees: $4.10. Shipping delta: -$1.00 (you profit $1 on shipping). Net profit: $35 - $10 - $4.10 + $1.00 = $21.90. Margin 62.6%. With mandatory 15% Offsite Ads: total fees rise to $9.35, net profit drops to $16.65, margin falls to 47.6%. A 15-point margin drop from one fee.

Frequently asked questions

Does Etsy charge fees on shipping?
Yes. The 6.5% transaction fee applies to both the item price and the shipping amount you charge the buyer. This is one of the most common surprises for new Etsy sellers. If you charge $8 for shipping, Etsy takes $0.52 in transaction fees on that shipping charge alone.
What is the Offsite Ads fee?
Etsy runs ads for your products on Google, Facebook, Instagram, and other platforms. If a buyer clicks one of these ads and purchases within 30 days, Etsy charges a fee on the sale. Shops that earned over $10,000 in the past 365 days pay a mandatory 15%. Shops below that threshold can opt in at 12% or turn it off entirely.
How do I reduce Etsy fees?
The transaction fee (6.5%) and payment processing fee (3% + $0.25) are non-negotiable. Your main levers are: raising your sale price to improve margin after fees, reducing COGS through better sourcing or production efficiency, and charging shipping that covers your actual cost so the shipping delta does not eat into profit.
What payment processing rate should I use?
US sellers pay 3% + $0.25 per transaction through Etsy Payments. Rates vary by country: UK sellers pay 4% + £0.20, Canadian sellers pay 3% + C$0.25, and Australian sellers pay 3% + A$0.25. This calculator uses US rates. Non-US sellers should adjust accordingly.
Can I avoid the Offsite Ads fee?
Only if your shop earned less than $10,000 in the past 365 days. Below that threshold, Offsite Ads are optional and you can opt out in your shop settings. Above $10,000, enrollment is mandatory. Etsy prohibits operating duplicate shops for the same products to circumvent this.
What if my profit is negative?
The calculator displays a warning that you lose money on this listing. Your options are to raise the sale price, reduce material or labor costs, or increase shipping charges to cover your actual carrier costs. Small price increases of $2 to $5 often restore profitability without noticeably affecting sales.