Etsy Profit Calculator
Calculate your exact Etsy earnings after transaction fees, payment processing, and shipping costs.
Calculation Results
Understanding Etsy Fees and Your Profitability
Running a successful Etsy shop requires more than just creativity; it requires a deep understanding of your margins. Many sellers forget that Etsy takes a percentage of the total transaction, including the shipping amount you charge to customers.
Breakdown of Etsy Fees
- Listing Fee: Etsy charges $0.20 for every item you list. Listings expire after four months or when the item is sold.
- Transaction Fee: When you make a sale, Etsy charges a 6.5% transaction fee on the total price, including shipping and gift wrapping.
- Payment Processing: If you use Etsy Payments, there is a processing fee. In the US, this is typically 3% of the total plus a flat $0.25 per order.
- Offsite Ads: This is an optional fee (or mandatory if you reach $10,000 in annual sales) that ranges from 12% to 15% of the total sale if the customer found your shop through an Etsy-placed ad.
How to Use This Calculator
To get the most accurate results, ensure you are including all hidden costs:
- Item Cost: Include the raw materials, labor, and overhead used to create the item.
- Shipping Costs: Don't just include the postage; include the cost of the box, bubble wrap, and tape.
- Marketing: If you use Etsy's internal ads (Etsy Ads), you should deduct that daily budget from your monthly profit totals.
Example Calculation
If you sell a handmade candle for $25.00 and charge $5.00 for shipping, your total revenue is $30.00.
- Listing Fee: $0.20
- Transaction Fee (6.5% of $30): $1.95
- Payment Processing (3% + $0.25): $1.15
- Total Fees: $3.30
If your candle cost $8.00 to make and $5.00 to ship, your net profit would be $13.70, giving you a profit margin of roughly 45.6%.
Tips for Increasing Your Margins
If your profit margins are lower than 20%, consider these strategies:
- Bulk Purchasing: Buy materials in larger quantities to lower your per-unit cost.
- Refine Packaging: Look for lightweight packaging options to reduce shipping costs without compromising safety.
- Price Value, Not Time: If your item is unique, price it based on the value it provides to the customer rather than just the cost of materials.