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Fees & profit guide

Etsy Fees and Profit: How to Work Out What You Actually Keep

8 min read · Updated

A $35 sale on Etsy doesn't mean $35 in your pocket. Fees, product costs, packaging, shipping, and sometimes ads all come out first. This guide walks through the main fees and a worked example so you can price with confidence.

This guide mentions third-party tools. Some links on SellerFit AI are affiliate links, and we may earn a commission at no extra cost to you. Read our disclosure.

The main Etsy fees

These are the fees most sellers see. Rates can vary by country and change over time, so always check Etsy's current Fees & Payments Policy for your shop.

Main Etsy seller fees
FeeHow it works (typical US rates)
Listing fee$0.20 per listing, renewed when an item sells or the listing expires.
Transaction fee6.5% of the total order amount, including shipping and gift wrap.
Payment processing feeA percentage plus a fixed amount per order (for example 3% + $0.25 in the US). Varies by country.
Offsite ads fee12% or 15% of the order, only when a sale comes from an Etsy offsite ad.
Etsy Ads (optional)Whatever daily budget you choose for on-site ads.

Depending on where you sell, you may also see currency conversion fees, regulatory operating fees, or VAT on seller fees.

Worked example: one $35 sale

Using the default values in our fee calculator: an item priced at $35 with free shipping, a $8 product cost, and $1 of packaging.

Fee and profit breakdown for a $35 sale
LineAmount
Sale price$35.00
Transaction fee (6.5%)−$2.28
Payment processing (3% + $0.25)−$1.30
Listing fee−$0.20
Product cost + packaging−$9.00
Profit≈ $22.23 (about 63.5% margin)

Amounts are rounded. Your own fees, costs, and shipping will differ.

How offsite ads change the picture

If the same sale comes through an Etsy offsite ad with a 15% fee, that's another $5.25. Profit drops to about $16.98 (roughly 48.5% margin). The sale is still profitable here, but on low-priced or low-margin items an ad fee can wipe out most of the profit.

Price with ads in mind

Run your numbers once with offsite ads set to “None” and once at 12% or 15%. If the item only works without ads, the price may be too tight.

Pricing for a healthy margin

  1. Add up everything it costs to make, pack, and ship one item.
  2. Add the Etsy fees on top. They're a percentage of the sale, so they grow as the price grows.
  3. Decide what profit you need per item to make the work worthwhile (including your time).
  4. Compare the result with similar listings. If you're far above the market, look for cost savings or a stronger value story.

Etsy Fee & Profit Calculator

Enter your price and costs to see fees, profit, margin, and a suggested price range.

Calculate My Profit

Costs sellers often forget

  • Shipping labels that cost more than the shipping you charge.
  • Packaging, tape, inserts, and thank-you cards.
  • Etsy Ads spend and offsite ads fees.
  • Returns, replacements, and damaged items.
  • Discounts and sales events, which lower the price but not your costs.
  • Tools and subscriptions spread across your monthly orders.

Notes for print-on-demand sellers

With print-on-demand, your “product cost” is the provider's base price plus their shipping charge, and both can differ a lot between providers and products. Compare these before you list, and recheck them when providers update prices.

Our Printify vs Printful comparison explains how the two most common platforms differ on cost flexibility and fulfillment. For a full tool setup, see The Beginner Etsy Tool Stack.

This guide is educational and does not guarantee sales, rankings, traffic, or profit. Etsy policies and fees can change, so check Etsy's own seller resources for the latest details. SellerFit AI is not affiliated with, endorsed by, or sponsored by Etsy, Inc. Etsy is a trademark of Etsy, Inc.

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