What fees does Etsy charge sellers?

Etsy charges a $0.20 listing fee per item, a 6.5% transaction fee on the item price plus shipping, and a 3% plus $0.25 payment processing fee. If you use Etsy Ads, you also pay for clicks or sales generated by ads. Use the [Etsy profit calculator](/tools/ecommerce/etsy-profit-calculator) to see total fees based on your selling price and costs. Platform fees alone take around 10% of the selling price before production or shipping costs.

What is a good profit margin for Etsy sellers?

A healthy Etsy profit margin is 40% to 60% after all fees and costs. Below 30%, you have little cushion for returns, fee increases, or material cost changes. Above 60%, you have room to invest in advertising or offer discounts. If your margin is below 30%, increase your selling price, reduce production costs, or choose a different product. The calculator shows your exact margin based on your inputs.

Should I offer free shipping on Etsy?

Etsy rewards listings with free shipping in search results, but you need to absorb the shipping cost into your product price. If you currently charge $25 for a product plus $5 shipping, offering free shipping means pricing the product at $30 and covering the $5 shipping cost yourself. Use the [Etsy profit calculator](/tools/ecommerce/etsy-profit-calculator) to see how free shipping affects your margin. If your margin drops too much, free shipping may not be worth it.

How do I calculate my cost of goods sold (COGS) for Etsy?

COGS includes materials, labor, and packaging for each item. Add up the cost of all materials used to make the product, estimate the time it takes to make it and assign a dollar value to your labor (such as $15 per hour), and include packaging materials like boxes, tape, and labels. For example, if materials cost $6, labor is $4, and packaging is $1, your COGS is $11. Enter this as your production cost in the calculator.

What is the Etsy transaction fee and how is it calculated?

The Etsy transaction fee is 6.5% of the total sale price, including the item price and shipping. If you sell a product for $25 with $5 shipping, the transaction fee is 6.5% of $30 = $1.95. This fee applies to every sale, including international sales. The [Etsy profit calculator](/tools/ecommerce/etsy-profit-calculator) automatically calculates this fee based on your inputs.

How much should I spend on Etsy Ads?

Etsy Ads cost depends on your product category and competition. A common target is 10% to 15% of the selling price. If your product sells for $25, aim for $2.50 to $3.75 in ad spend per sale. If your margin is high, you can spend more. If your margin is tight, reduce ad spend or optimize your listings to rank organically. Start with a low daily budget ($5 to $10) and adjust based on sales performance.

What is the breakeven price for an Etsy product?

The breakeven price is the minimum selling price at which you make zero profit after all fees and costs. It includes your production cost, Etsy fees, shipping, and any other expenses. If competitors are selling below your breakeven price, you need to differentiate your product, reduce costs, or find a different niche. Use the calculator to find your breakeven price and compare it to the market price.

Can I make a full-time income selling on Etsy?

Yes, but it requires consistent sales volume and healthy margins. If your profit per sale is $10 and you want to make $50,000 per year, you need to sell 5,000 units per year (about 14 per day). Use the calculator to ensure your margin supports a full-time income. Many successful Etsy sellers start part-time and scale up as they refine their products and marketing.

What happens if a customer requests a refund on Etsy?

If you issue a refund, Etsy refunds the transaction fee but not the payment processing fee or listing fee. You also lose the cost of goods sold and shipping if you do not require the customer to return the item. To reduce refund risk, provide clear product photos, accurate descriptions, and fast shipping. Factor a small refund rate (2% to 5% of sales) into your pricing to account for occasional returns.

Should I sell handmade items or print-on-demand on Etsy?

Handmade items have higher margins but require more time and labor. Print-on-demand has lower margins but scales without additional labor. If you can make a product for $10 and sell it for $30, your margin is better than a print-on-demand item that costs $15 to produce and sells for $25. Use the [Etsy profit calculator](/tools/ecommerce/etsy-profit-calculator) to compare margins for both models and decide which fits your business goals.

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 does the Etsy Profit Calculator (2026 Fee Schedule) work step by step?

The [OnSumo Etsy Profit Calculator](/tools/ecommerce/etsy-profit-calculator) calculates your net profit per item sold on Etsy after deducting platform fees, payment processing fees, shipping costs, and production costs. This shows what you actually keep from each sale. Etsy charges a listing fee ($0.20 per item), a transaction fee (6.5% of the item price plus shipping), a payment processing fee (3% plus $0.25), and optional advertising fees if you use Etsy Ads. The calculator subtracts all these fees from your selling price along with your cost of goods sold and shipping costs. The calculation starts with your selling price, deducts the 6.5% transaction fee, deducts the 3% payment processing fee plus $0.25, subtracts your production cost (materials and labor), subtracts shipping costs, and subtracts the $0.20 listing fee. What remains is your net profit per sale.

What does a typical Etsy Profit Calculator (2026 Fee Schedule) result look like?

An Etsy seller creates handmade candles and sells them for $25 each. Material cost is $6 per candle, labor is $4, and shipping is $5. The seller uses Etsy Ads and spends $1.50 per sale. Fees and costs: Listing fee: $0.20 Transaction fee: 6.5% of ($25 + $5 shipping) = $1.95 Payment processing: 3% of ($25 + $5) + $0.25 = $1.15 Production cost (materials + labor): $10.00 Shipping cost: $5.00 Etsy Ads: $1.50 Total costs: $0.20 + $1.95 + $1.15 + $10.00 + $5.00 + $1.50 = $19.80 Net profit: $25 - $19.80 = $5.20 per sale Profit margin: 20.8% This margin is low. If the seller removes Etsy Ads, profit increases to $6.70 per sale (26.8% margin). To reach a healthier 40% margin, the seller should increase the price to $30 or reduce production costs.

Frequently asked questions

What fees does Etsy charge sellers?
Etsy charges a $0.20 listing fee per item, a 6.5% transaction fee on the item price plus shipping, and a 3% plus $0.25 payment processing fee. If you use Etsy Ads, you also pay for clicks or sales generated by ads. Use the [Etsy profit calculator](/tools/ecommerce/etsy-profit-calculator) to see total fees based on your selling price and costs. Platform fees alone take around 10% of the selling price before production or shipping costs.
What is a good profit margin for Etsy sellers?
A healthy Etsy profit margin is 40% to 60% after all fees and costs. Below 30%, you have little cushion for returns, fee increases, or material cost changes. Above 60%, you have room to invest in advertising or offer discounts. If your margin is below 30%, increase your selling price, reduce production costs, or choose a different product. The calculator shows your exact margin based on your inputs.
Should I offer free shipping on Etsy?
Etsy rewards listings with free shipping in search results, but you need to absorb the shipping cost into your product price. If you currently charge $25 for a product plus $5 shipping, offering free shipping means pricing the product at $30 and covering the $5 shipping cost yourself. Use the [Etsy profit calculator](/tools/ecommerce/etsy-profit-calculator) to see how free shipping affects your margin. If your margin drops too much, free shipping may not be worth it.
How do I calculate my cost of goods sold (COGS) for Etsy?
COGS includes materials, labor, and packaging for each item. Add up the cost of all materials used to make the product, estimate the time it takes to make it and assign a dollar value to your labor (such as $15 per hour), and include packaging materials like boxes, tape, and labels. For example, if materials cost $6, labor is $4, and packaging is $1, your COGS is $11. Enter this as your production cost in the calculator.
What is the Etsy transaction fee and how is it calculated?
The Etsy transaction fee is 6.5% of the total sale price, including the item price and shipping. If you sell a product for $25 with $5 shipping, the transaction fee is 6.5% of $30 = $1.95. This fee applies to every sale, including international sales. The [Etsy profit calculator](/tools/ecommerce/etsy-profit-calculator) automatically calculates this fee based on your inputs.
How much should I spend on Etsy Ads?
Etsy Ads cost depends on your product category and competition. A common target is 10% to 15% of the selling price. If your product sells for $25, aim for $2.50 to $3.75 in ad spend per sale. If your margin is high, you can spend more. If your margin is tight, reduce ad spend or optimize your listings to rank organically. Start with a low daily budget ($5 to $10) and adjust based on sales performance.
What is the breakeven price for an Etsy product?
The breakeven price is the minimum selling price at which you make zero profit after all fees and costs. It includes your production cost, Etsy fees, shipping, and any other expenses. If competitors are selling below your breakeven price, you need to differentiate your product, reduce costs, or find a different niche. Use the calculator to find your breakeven price and compare it to the market price.
Can I make a full-time income selling on Etsy?
Yes, but it requires consistent sales volume and healthy margins. If your profit per sale is $10 and you want to make $50,000 per year, you need to sell 5,000 units per year (about 14 per day). Use the calculator to ensure your margin supports a full-time income. Many successful Etsy sellers start part-time and scale up as they refine their products and marketing.
What happens if a customer requests a refund on Etsy?
If you issue a refund, Etsy refunds the transaction fee but not the payment processing fee or listing fee. You also lose the cost of goods sold and shipping if you do not require the customer to return the item. To reduce refund risk, provide clear product photos, accurate descriptions, and fast shipping. Factor a small refund rate (2% to 5% of sales) into your pricing to account for occasional returns.
Should I sell handmade items or print-on-demand on Etsy?
Handmade items have higher margins but require more time and labor. Print-on-demand has lower margins but scales without additional labor. If you can make a product for $10 and sell it for $30, your margin is better than a print-on-demand item that costs $15 to produce and sells for $25. Use the [Etsy profit calculator](/tools/ecommerce/etsy-profit-calculator) to compare margins for both models and decide which fits your business goals.