Etsy's fees for US sellers
When an item sells on Etsy, three fees normally apply. The listing fee is $0.20 per listing; when an item sells, the listing renews, which is charged as a new $0.20 fee. The transaction fee is 6.5% of the item price plus the shipping and gift-wrap charges you collect. The payment processing fee for sellers whose bank account is in the US is 3% plus $0.25, taken from the total the buyer pays, including shipping and any sales tax.
Transaction fee = 6.5% × (item price + shipping + gift wrap)
Payment processing = 3% × (item price + shipping + sales tax) + $0.25
Total fees = listing fee + transaction fee + payment processing (+ Offsite Ads if applicable)
Payment processing rates differ by country; for example, Etsy lists 3% + 0.25 AUD for domestic Australian orders and 3% + 0.25 CAD for domestic Canadian orders, with 4% for international orders. Edit the fields to match your shop's rates.
Worked example
A handmade item sells for $30 with $5 shipping. Materials cost $12, postage $4.50 and packaging $0.50.
- Listing fee: $0.20.
- Transaction fee: 6.5% × $35 = $2.28.
- Payment processing: 3% × $35 + $0.25 = $1.30.
- Total Etsy fees: $3.78, 10.8% of what the buyer paid you. Payout: $31.23.
- Net profit after materials, postage and packaging: $14.23, a 40.6% margin.
- Break-even price: $14.29. To make $10 profit, the item needs to sell for at least $25.34.
If the buyer also pays $2.45 in sales tax, the payment processing fee rises to $1.37, because it is charged on the tax too, and profit falls to $14.15.
Offsite Ads
Etsy advertises listings on other websites and charges an Offsite Ads fee only when a sale comes from one of those ads. The rate depends on your shop's sales over the past year and is capped per order; check the current rate and cap in Etsy's Fees & Payments Policy. In the example, a 15% Offsite Ads fee would add $5.25, bringing total fees to $9.10 (26%) and profit down to $8.90; the break-even price rises to $18.18. Because only some sales come from ads, many sellers build a typical ad share into their prices.
Other costs to consider
- Currency conversion: if your listing currency differs from your payment account currency, Etsy charges a conversion fee.
- Etsy Ads (on-site promoted listings) are a daily budget you set, separate from Offsite Ads.
- Shipping labels bought on Etsy are billed to your account; enter their cost as postage.
- Shop setup fee and Etsy Plus are one-time or monthly costs; spread them over your expected sales if you want a full picture.
Pricing tips
- Use the target-profit field to find the minimum price for the profit you want, then round up to a price point.
- If you offer free shipping, move the postage into the item price: the 6.5% transaction fee then applies to it either way.
- Check low-priced items carefully: the $0.20 listing fee and $0.25 processing fee are a bigger share of a $5 sale.
A simple pricing formula
Many sellers start from materials plus labour, add overheads, then apply a markup for profit, and finally check the price against Etsy's fees with this calculator. Whatever formula you use, make sure the final price still leaves a profit after fees on both the shipping you charge and the payment total.
Review prices once a year, or whenever fees or postage change.
Common mistakes
- Forgetting the 6.5% applies to shipping.
- Leaving out sales tax when calculating payment processing.
- Counting only material costs and not packaging, labels or ad fees.
Fee rates were checked against each marketplace's official help pages in October 2026 and are shown in editable fields. Marketplaces change fees from time to time, so check the current rates before pricing. This site is not affiliated with Etsy, eBay, Poshmark or Mercari.
Frequently asked questions
How much are Etsy fees on a $30 sale?
With $5 shipping: $0.20 listing, $2.28 transaction (6.5%) and $1.30 processing (3% + $0.25), $3.78 in total.
Does Etsy charge fees on shipping?
Yes. The 6.5% transaction fee and the payment processing fee both include the shipping you charge.
Does Etsy charge fees on sales tax?
The payment processing fee is calculated on the total including sales tax; the 6.5% transaction fee is not charged on US sales tax.
What price do I need to make $10 on Etsy?
In the example with $12 materials, $4.50 postage and $5 shipping charged, about $25.34.
Sources
- Etsy Help Center. Etsy Fee Basics (help.etsy.com).
- Etsy Help Center. What are Payment Processing Fees for Selling on Etsy? (help.etsy.com).
- Etsy. Fees & Payments Policy (etsy.com/legal/fees).
Last reviewed 27 October 2026. Results are estimates; see our disclaimer.