Etsy Profit Calculator
Running a profitable Etsy shop requires more than just covering the cost of materials. Etsy charges multiple layers of fees - a listing fee, a transaction fee on the sale price and shipping, and a payment processing fee - that can consume 15-25% of revenue before you account for materials, labour, packaging, and shipping. This Etsy profit calculator lets you enter your item sale price, materials cost, labour cost, shipping charge and actual shipping cost, and packaging cost. It automatically deducts all current Etsy fees and shows your net profit per item and profit margin. Use it to check whether your current pricing is actually profitable or to reverse-engineer the price you need to charge to hit a target margin.
Etsy fee and profit formula
Listing Fee = $0.20 per sale
Transaction Fee = (Sale Price + Shipping Charged) x 6.5%
Payment Processing Fee = (Sale Price + Shipping Charged) x 3% + $0.25
Total Etsy Fees = Listing Fee + Transaction Fee + Payment Processing Fee
Total Costs = Materials + Labour + Actual Shipping + Packaging + Total Etsy Fees
Net Profit = (Sale Price + Shipping Charged) - Total Costs
Profit Margin = Net Profit / (Sale Price + Shipping Charged) x 100
Frequently asked questions
What fees does Etsy charge sellers?
Etsy charges a $0.20 listing fee per item (renewed every 4 months or at each sale), a 6.5% transaction fee on the item price plus shipping, and a 3% + $0.25 payment processing fee (Etsy Payments, US). Offsite Ads fees of 12-15% apply only when a sale results from an Etsy-placed ad on external platforms. Etsy Plus subscribers pay $10/month for additional features.
How do I calculate my Etsy profit margin?
Profit margin = (Revenue - All Costs) / Revenue x 100. All costs include materials, labour, packaging, shipping supplies, Etsy fees, and any advertising. A healthy Etsy margin is generally 30-50% for handmade goods. If your margin is below 20%, your pricing or material costs likely need adjustment.
Should I include my labour in the cost?
Yes, absolutely. Your time has a value. Decide on an hourly rate for your labour (minimum: local minimum wage; recommended: $20-40+ per hour for skilled handmade work) and multiply by the hours per item. Sellers who do not include labour in their costs are effectively paying themselves nothing for their time.
How does the Etsy Offsite Ads fee work?
Etsy automatically advertises your listings on platforms like Google, Facebook, and Instagram. If a sale results from one of these ads, Etsy charges 15% of the order total (or 12% if you generated more than $10,000 in sales in the past 365 days). High-volume sellers cannot opt out of Offsite Ads. The fee applies to the item price and shipping.
What is a good price for an Etsy item?
A common pricing formula is: Materials + Labour + Overhead + Profit = Wholesale price. Retail price = Wholesale x 2. Then adjust for Etsy fees on top. Research comparable listings in your niche to ensure your price is competitive. Etsy buyers expect handmade goods to cost more than mass-produced alternatives, so pricing that reflects your skill and materials is appropriate.
Sources
- Etsy Help Center: What are Etsy fees?.
- IRS: Self-employed individuals tax center.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.