Your Etsy price has to cover three things: what the item costs you, Etsy's fees and the profit you want. Then it has to make sense next to similar items in search. This guide gives you the formula, the fees Etsy actually charges and a worked example you can check in the free fee calculator.
The Etsy pricing formula
For a US seller who builds shipping into the price: price = (your costs + fixed fees + target profit) ÷ (1 − percentage fees).
- Your costs: materials, packaging, labor and the shipping you pay
- Fixed fees: the $0.20 listing fee plus the $0.25 payment processing fee
- Percentage fees: the 6.5% transaction fee plus 3% payment processing, so 9.5% of the order
If you charge shipping separately or a buyer pays sales tax, the percentages apply to those amounts too, so check the exact numbers in the calculator.
Step 1 — Work out your true cost per item
Physical products
Add materials, packaging, the shipping label you pay for and the time each item takes. Use the cost of one unit, not a batch.
Digital products
There's no shipping, but count the software, fonts or licenses you pay for, and your time.
Step 2 — Add Etsy's fees
Etsy's standard fees are separate charges, and some rates depend on where your bank account is. For a US seller: a $0.20 listing fee for each listing and renewal, a 6.5% transaction fee on the item price plus shipping and gift wrap, and payment processing of 3% + $0.25 on the full order, including shipping and tax. Sellers whose bank account is in another country pay that country's processing rate instead (sources: Etsy's Fees & Payments Policy and Etsy Payments Policy, checked October 2026).
Offsite Ads are not a standard fee: Etsy charges them only when a sale comes from one of its offsite ads. The fee is 15% for shops with under $10,000 in sales over the prior 365 days (these shops can opt out), drops to 12% at $10,000 or more, and is capped at $100 per order.
Example from the Listimize fee calculator's test cases: on a $25 item with $5 shipping, a US seller pays $3.30 in Etsy fees, or 11% of the $30 order. Set your price so you still make a profit after every fee.
Step 3 — Find your break-even price and profit
Your break-even price is where Etsy's fees and your costs use up the whole sale. Everything above it is profit. Here is the US example worked through line by line.
| Line | Amount |
|---|---|
| Item price | $25.00 |
| Shipping charged | $5.00 |
| Order total | $30.00 |
| Listing fee | $0.20 |
| Transaction fee (6.5%) | $1.95 |
| Payment processing (3% + $0.25) | $1.15 |
| Etsy fees in total | $3.30 |
| Your costs (materials $8, packaging $1, shipping label $4.50) | $13.50 |
| Profit | $13.20 (44% of the order) |
Step 4 — Check the price range in your niche
Use the median, not the average
Look at the top 20–30 comparable listings in your niche and find the median price. Use the median instead of the average: one overpriced listing can skew the average, but not the median.
Where to find comparable prices
Search your main phrase on Etsy and note the prices of truly comparable items. Listimize's Niche Winner Finder lists strong listings in a niche with their prices (USD); it requires an account.
Free shipping is a pricing decision
Etsy's free shipping guarantee, if you set it up, gives US buyers free shipping on an item or order of $35 USD and up. Etsy also says US listings with domestic shipping prices lower than $6 are prioritized in search. Building shipping into the price is one way to meet both; check in the calculator that your profit survives it.
When to raise prices
Raise prices in small steps and change one thing at a time, so Etsy Stats can show whether views or sales changed. Etsy says search changes can take up to one day to show, so judge results over weeks, not hours.
Common pricing mistakes
- Using one country's payment processing rate when your bank account is in another country
- Treating Offsite Ads as a fee on every order — it only applies to sales that come from Etsy's offsite ads
- Forgetting the 2.5% currency conversion fee when you list in a different currency than your payment account
- Discounting below your break-even price during a sale
FAQ
How much does Etsy take from a sale?
For a US seller: a $0.20 listing fee, 6.5% of the item price plus shipping and gift wrap, and 3% + $0.25 payment processing on the order — 11% of a $30 order in the example above. Offsite Ads add 15% or 12% only when a sale comes from them.
Does Etsy charge fees on shipping?
Yes. The transaction fee applies to the item price plus shipping and gift wrap, and payment processing applies to the full order, including shipping and tax.
How do I price digital downloads?
Use the same formula without shipping. Your costs are mainly your time and any software, fonts or licenses you pay for.
The Profit Calculator deducts all Etsy fees automatically and shows your real margin — check it before you set a price.