Quick Answer
Etsy charges sellers a $0.20 listing fee per item, a 6.5% transaction fee on the sale price including shipping, and a payment processing fee of 3% + $0.25 per transaction.
Etsy's fee structure is a marketplace commission model that combines per-listing charges with percentage-based transaction and payment fees on every sale.
For a typical $30 sale (item plus shipping), total Etsy fees come to approximately $3.30, which is about 11% of revenue. That percentage drops slightly on higher-priced items because the fixed fees ($0.20 and $0.25) become a smaller share.
Every Fee Etsy Charges
1. Listing Fee -- $0.20 Per Item
Every time you list or relist an item, Etsy charges $0.20. Listings last four months. If the item does not sell, you can manually renew it (another $0.20) or enable auto-renewal. When a multi-quantity listing sells one unit, Etsy automatically charges a new $0.20 fee to relist the next unit.
2. Transaction Fee -- 6.5% of Total Sale
Etsy takes 6.5% of the total order amount, which includes the item price and any shipping the buyer pays. If you charge $25 for an item and $5 for shipping, the transaction fee applies to the full $30.
Transaction fee = 0.065 x ($25 + $5) = $1.95
3. Payment Processing Fee -- 3% + $0.25
When a buyer pays through Etsy Payments (required in most countries), the payment processing fee is 3% of the total sale amount plus a flat $0.25. This covers credit card and payment method processing.
Processing fee = (0.03 x $30) + $0.25 = $0.90 + $0.25 = $1.15
4. Offsite Ads Fee -- 15% or 12%
Etsy runs advertising campaigns on Google, Facebook, Instagram, and other platforms. If a buyer clicks one of these ads and purchases from your shop within 30 days, you pay an offsite ads fee.
- 15% of the sale price for shops earning under $10,000/year
- 12% for shops earning $10,000 or more/year
Shops earning under $10,000/year can opt out. Shops above that threshold cannot opt out.
5. Currency Conversion Fee -- 2.5%
If you sell to international buyers and the transaction involves a currency conversion, Etsy charges 2.5% on the converted amount.
6. Etsy Plus Subscription -- $10/Month (Optional)
Etsy Plus provides 15 listing credits per month ($3.00 value), a $5.00 Etsy Ads credit, advanced shop customization options, and restock request notifications. The net cost after credits is about $2.00/month if you use all the credits.
Worked Example 1: $25 Item With $5 Shipping
| Fee | Calculation | Amount |
|---|---|---|
| Listing fee | Flat fee | $0.20 |
| Transaction fee | 6.5% x $30 | $1.95 |
| Payment processing | 3% x $30 + $0.25 | $1.15 |
| Total fees | $3.30 | |
| Effective fee rate | $3.30 / $30 | 11.0% |
If your material cost is $6.00 and labor is $8.00, your remaining profit is $30.00 - $3.30 - $6.00 - $8.00 = $12.70 (42.3% margin on revenue).
Worked Example 2: $75 Item With Free Shipping
When you offer free shipping, you typically build the shipping cost into the item price. Etsy fees still apply to the full amount the buyer pays.
| Fee | Calculation | Amount |
|---|---|---|
| Listing fee | Flat fee | $0.20 |
| Transaction fee | 6.5% x $75 | $4.88 |
| Payment processing | 3% x $75 + $0.25 | $2.50 |
| Total fees | $7.58 | |
| Effective fee rate | $7.58 / $75 | 10.1% |
The effective rate drops to 10.1% because the fixed $0.45 ($0.20 + $0.25) is a smaller fraction of the higher sale price.
Worked Example 3: $25 Item Sold Via Offsite Ad
When a buyer reaches your listing through an Etsy offsite ad, the 15% offsite ads fee is added to all standard fees.
| Fee | Calculation | Amount |
|---|---|---|
| Listing fee | Flat fee | $0.20 |
| Transaction fee | 6.5% x $30 | $1.95 |
| Payment processing | 3% x $30 + $0.25 | $1.15 |
| Offsite ads fee | 15% x $30 | $4.50 |
| Total fees | $7.80 | |
| Effective fee rate | $7.80 / $30 | 26.0% |
The offsite ad nearly doubles total fees. On this $30 sale, only $22.20 reaches you before material and labor costs. If your costs are $14.00, profit drops to $8.20 (27.3% margin) compared to $12.70 without the offsite ad.
Fee Breakdown by Sale Price
This table shows standard fees (no offsite ads) for different price points, assuming the listed price includes shipping:
| Sale Price | Listing Fee | Transaction (6.5%) | Processing (3% + $0.25) | Total Fees | Effective Rate |
|---|---|---|---|---|---|
| $15 | $0.20 | $0.98 | $0.70 | $1.88 | 12.5% |
| $30 | $0.20 | $1.95 | $1.15 | $3.30 | 11.0% |
| $50 | $0.20 | $3.25 | $1.75 | $5.20 | 10.4% |
| $100 | $0.20 | $6.50 | $3.25 | $9.95 | 10.0% |
The pattern is clear: higher-priced items have a lower effective fee rate because the fixed fees shrink as a percentage. At $100, the rate approaches the theoretical floor of about 9.5% (6.5% + 3%).
Pricing Formula for Profit
To set a listing price that covers all fees and your target profit, use this formula:
Listing Price = (Material Cost + Labor + Desired Profit + Shipping Cost) / (1 - Total Fee Rate)
The total fee rate for standard sales (no offsite ads) is approximately:
- 6.5% transaction + 3% processing = 9.5% in percentage-based fees
- Plus $0.45 in fixed fees ($0.20 listing + $0.25 processing)
Example: You want to net $15 profit on an item that costs $8 in materials and $10 in labor, with $4 shipping.
Target revenue needed: $8 + $10 + $15 + $4 = $37
Listing price = $37 / (1 - 0.095) = $37 / 0.905 = $40.88
Round to $40.99 or $41.00. At $41.00, your fees would be approximately:
- Listing: $0.20
- Transaction: $2.67
- Processing: $1.48
- Total fees: $4.35
- Actual profit: $41.00 - $8.00 - $10.00 - $4.00 - $4.35 = $14.65
The slight difference from the $15 target comes from rounding and the fixed-fee components. Adjust upward by $0.50-$1.00 if you want to fully cover fixed fees.
Profit Margin After All Fees
Your true profit margin on Etsy must account for every cost layer:
Profit Margin = (Sale Price - Material - Labor - Shipping - All Etsy Fees) / Sale Price x 100
Sellers who only subtract material costs from sale price dramatically overestimate their margins. A $30 item with $5 in materials looks like an 83% margin, but after $10 in labor, $4 in shipping, and $3.30 in fees, the real margin is $7.70 / $30 = 25.7%.
How to Reduce Your Effective Fee Rate
Price Higher, Not Lower
Because fixed fees ($0.45 per sale) represent a larger percentage on cheap items, higher-priced products inherently have better fee efficiency. A $50 item pays approximately 10.4% in total fees; a $15 item pays 12.5%.
Bundle Products
Selling a set of three items for $45 instead of three separate $15 listings reduces fixed fees by two-thirds (one listing fee and one processing flat fee instead of three of each). Total fees on the $45 bundle: $4.80. Total fees on three $15 sales: $5.64. That is $0.84 saved per bundle.
Account for Offsite Ads in Pricing
If you cannot opt out of offsite ads, assume some percentage of your sales will trigger the fee. If 10% of your orders come from offsite ads at 15%, your blended average fee rate increases by about 1.5 percentage points. Build this into your pricing.
Track Actual Fee Totals Monthly
Download your Etsy payment CSV each month and calculate your actual effective fee rate. Compare it against your pricing model. Fees change, and Etsy periodically adjusts rates -- the transaction fee increased from 5% to 6.5% in April 2022.
This content is educational and does not constitute financial advice. Fee rates are based on Etsy's published fee schedule as of early 2026 and may change. Verify current rates on Etsy's website.
Frequently Asked Questions
What percentage does Etsy take total?
Without offsite ads, Etsy takes approximately 10-13% of the total sale amount depending on price. This includes the $0.20 listing fee, 6.5% transaction fee, and 3% + $0.25 payment processing fee. Higher-priced items have a lower effective rate.
Are Etsy offsite ads worth it?
It depends on your profit margin. The 15% fee (12% for high-volume sellers) is charged only on sales attributed to offsite ads. If your margins exceed 30%, these sales may still be profitable. If margins are thin, the extra fee can wipe out profit. Track the return on these sales in your shop stats.
How do I calculate my Etsy profit margin?
Subtract all costs from revenue: materials, labor, shipping, listing fee, transaction fee, and processing fee. Divide the remainder by the sale price. A $40 item with $22 in total costs and $4 in fees yields $14 profit, which is a 35% margin.
Do I pay Etsy fees on shipping?
Yes. The 6.5% transaction fee and 3% payment processing fee both apply to the full order total, including shipping charges. This is why some sellers build shipping into the item price -- the fees are the same either way.
How much is the Etsy listing fee?
$0.20 per listing. It is charged when the listing is created, when it auto-renews after four months, and when a unit sells from a multi-quantity listing (triggering a relisting).
Can I opt out of Etsy offsite ads?
Only if your shop earned less than $10,000 in the trailing 12 months. Shops above $10,000 are permanently enrolled, though the fee rate drops from 15% to 12%.
What is Etsy Plus and is it worth it?
Etsy Plus costs $10/month and includes 15 listing credits and a $5 Etsy Ads credit, totaling $8 in credits. The net cost is about $2/month plus access to shop customization features and restock alerts. It is a modest benefit for active sellers.
How do I price my Etsy products to cover all fees?
Use the formula: Listing Price = (Materials + Labor + Profit Target + Shipping) / (1 - 0.095). This accounts for the percentage-based fees. Add $0.50-$1.00 to cover the fixed fees ($0.20 listing + $0.25 processing).
Does Etsy charge fees when I do not make a sale?
Yes. The $0.20 listing fee is charged upfront when you list the item, whether it sells or not. If you enable auto-renewal, you pay another $0.20 every four months the item remains listed.
What is the Etsy payment processing fee?
For US sellers, it is 3% of the total transaction amount plus a flat $0.25. This fee covers payment processing through Etsy Payments and applies to the full amount paid by the buyer, including item price, shipping, and applicable tax.
Etsy Fee Calculator
Enter your item price, shipping cost, and product costs to see every Etsy fee broken out, your net revenue, and true profit margin per sale.
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