Marketplace fees
Etsy Pricing Calculator
The right Etsy price is not your costs plus a markup — it is the price that still leaves your profit after Etsy’s 9.5% plus $0.45 has been taken out. For example, an item costing $17.50 all-in that must return $15 of profit needs a price of $36.41, not $32.50. Enter your costs and target profit below and get your price.
How do I price an Etsy item to guarantee my profit?
Add up everything the sale costs you (materials, shipping, packaging), add the profit you want, then divide by what survives Etsy’s fees. The pricing formula is: price = (total costs + target profit + $0.45) ÷ (1 − 0.095) for a normal US sale, where 9.5% is Etsy’s combined transaction and processing percentage and $0.45 is its fixed fees. If you need the price to survive an Offsite Ads sale too, divide by (1 − 0.245) at the 15% ads rate instead — the calculator above does both.
How it works
Most new sellers price backwards by instinct — costs plus a bit for profit — and then watch Etsy take a slice of the whole price, including the slice that was supposed to be profit. The fix is to price through the fees. Every dollar of your price loses 9.5 cents to the percentage fees (6.5% transaction + 3% US processing), plus 45 cents of fixed fees ($0.20 listing + $0.25 processing) per sale. Whether you searched for an Etsy pricing calculator, an Etsy price calculator or an Etsy profit calculator, this is the formula that makes the target profit survive:
Price = (item cost + shipping cost + packaging + target profit + $0.45) ÷ (1 − 0.095)The calculator assumes the increasingly standard Etsy setup: you offer “free shipping” and absorb the postage inside the price. That matters twice over — Etsy’s percentage fees apply to the whole price either way, and Etsy gives search visibility advantages to listings offering US buyers free shipping on orders of $35 or more. If you charge shipping separately instead, set your shipping cost to zero here and remember the fees will also be charged on the shipping the buyer pays.
Rates used by this calculator
| Fee the price must absorb | Rate | Effect on each sale |
|---|---|---|
| Transaction fee | 6.5% of the price | The biggest single slice |
| Payment processing (US) | 3% of the price + $0.25 | Percentage plus a fixed fee |
| Listing fee | $0.20 | Charged per listing/sale of each quantity |
| Offsite Ads (optional protection) | 15% or 12% of the price | Only when an Offsite Ad makes the sale |
Source: Etsy’s Fees & Payments policy (etsy.com/legal/fees) — the same rates as the Etsy fee calculator. Last verified: November 2026
Worked examples
Example 1 — handmade item: $12 materials, $4.50 postage, $1 packaging, $15 target profit
| Total costs + target profit | $32.50 |
| Minimum price to charge | $36.41 |
| Etsy fees at that price | $3.91 |
| You receive | $32.50 |
| Profit after all costs | $15.00 |
Pricing at the intuitive $32.50 instead would have left only about $11.55 of profit after fees.
Example 2 — a digital download: no materials, no postage, $20 target profit
| Total costs + target profit | $20.00 |
| Minimum price to charge | $22.60 |
| Etsy fees at that price | $2.60 |
| You receive | $20.00 |
| Profit after all costs | $20.00 |
Digital sellers have the cleanest maths — but the listing fee is charged again every four months per active listing, and on every sale of a quantity.
Example 3 — $20 of costs, $25 target profit, price protected against a 15% Offsite Ads sale
| Total costs + target profit | $45.00 |
| Minimum price to charge | $60.20 |
| Etsy fees incl. Offsite Ads at that price | $15.20 |
| You receive | $45.00 |
| Profit after all costs | $25.00 |
Insuring against Offsite Ads raises the needed price sharply — most sellers only build it into the products where the margin genuinely needs it.
When these fees apply — and the limitations
This calculator prices for a US-based shop using Etsy Payments at standard rates, with postage absorbed into the price. It does not account for:
- Your time — if making an item takes an hour, add an hourly labour cost to the item cost, or the “profit” the calculator protects is partly unpaid wages.
- UK and other processing rates — outside the US the fee percentage differs (UK processing is 4% + £0.30, making the divisor 1 − 0.105 before any regulatory operating fee, which also applies in the UK).
- Discounts and sale pricing — if you plan to run 20%-off sales, price from the discounted figure, not the list price.
- Returns, remakes and damaged parcels — experienced sellers add a small contingency to costs.
- Taxes on your profit, which are your own responsibility and vary by country.
Comparing your options
Pricing and fee-checking are two halves of the same job: once you have set a price here, run a sample sale through the Etsy fee calculator to see the exact deduction line by line. UK sellers should note the pricing maths changes with UK processing (4% + £0.30): the equivalent divisor is (1 − 0.105) before the Etsy fee calculator UK rates are applied.
Frequently asked questions
What formula do successful Etsy sellers use to price items?
Price = (all costs + target profit + $0.45) ÷ 0.905, for a US shop. The $0.45 covers Etsy’s fixed per-sale fees ($0.20 listing and $0.25 processing), and dividing by 0.905 restores the 9.5% that the percentage fees will take. Pricing this way means the profit you planned is the profit you actually receive, instead of 90.5% of it.
Should I offer free shipping on Etsy?
For most physical goods, yes — and price the postage in, exactly as this calculator does. Etsy gives search prominence to listings with free shipping for US buyers on orders of $35 or more, and buyers consistently convert better when the full cost is visible in the price. Your fees are the same either way, because Etsy charges its percentages on price plus shipping combined.
How much markup should I add on Etsy?
There is no single right markup, because the safe figure depends on your costs: after Etsy’s take, a price built as costs × 2 (a 100% markup on costs) leaves roughly 40% of the price as gross profit before your time. A common floor for handmade goods is materials and postage multiplied by 2 to 2.5 at retail. Whatever multiplier you choose, run it through the formula above so the fees come out of the price, not out of your profit.
Why does my Etsy profit never match my prices?
Usually because the price was set as costs plus profit, and then Etsy took 9.5% of the entire price — including 9.5% of the profit portion — plus $0.45 of fixed fees. On a $32.50 price that leakage is about $3.54 per sale. Dividing by (1 − 0.095) instead of just adding costs and profit closes the leak exactly.
Does this pricing calculator work for UK Etsy sellers?
The method does, with one change: UK payment processing is 4% + £0.30, so the percentage to divide by is 10.5% (6.5% transaction + 4% processing) plus a small regulatory operating fee, and the fixed fees are £0.30 processing plus the listing fee. For exact UK sale breakdowns, use the Etsy fee calculator UK page.
Read the guide: How to Price on Etsy Without Losing Money to Fees — the formula that makes your target profit survive Etsy’s fees.
Related calculators
Estimates only. Platforms can change their fees at any time; always confirm the rate on the platform’s own pricing page before making pricing decisions. ToolFees is not affiliated with the platform named on this page.