GUIDE

How to price Etsy products after fees

Work backward from the profit you want so fees never eat your margin.

By Anas · Last reviewed October 2026

Why "cost plus a bit" fails on Etsy

Most Etsy fees are a percentage of the whole order (item price plus the shipping you charge), and the rest are small fixed amounts. Adding a flat markup to your costs undershoots, because the fees grow with the price. The fix is to work backward from the profit you want.

The formula

  1. Add your fixed costs: materials, packaging, the postage you really pay, and Etsy's fixed fees (the listing fee plus the flat part of payment processing).
  2. Add the profit you want per sale.
  3. Add up the percentage fees: 6.5% transaction fee, your payment processing %, your regulatory operating fee % if your country has one, and Offsite Ads (15% or 12%) if the sale may come from an ad. If you pay VAT on fees, multiply the percentages and the fixed fees by 1 plus the VAT rate.
  4. Divide the total from steps 1 and 2 by (1 minus the percentage fees). That gives the order total, item price plus shipping charged.
  5. Subtract the shipping you charge the buyer to get your item price.

Order total = (profit + materials + postage cost + fixed Etsy fees) ÷ (1 − percentage fees)

Example 1: US seller

Target profit $15, materials $10, postage $6 charged to the buyer at cost. Percentage fees are 6.5% + 3% = 9.5%, and fixed fees are $0.20 + $0.25 = $0.45. Order total = ($15 + $10 + $6 + $0.45) ÷ 0.905 = $34.75, so the item price is $28.75. Check: fees come to $3.75 and profit is exactly $15.00.

Example 2: the same product when Offsite Ads applies

If the sale comes from an Etsy-placed ad at 15%, percentage fees rise to 24.5%. Order total = $31.45 ÷ 0.755 = $41.66, so the item price is $35.66. That is about $7 more to keep the same $15 profit, which is why many sellers under $10,000 a year build the ad fee into their prices, since it is mandatory for them.

Example 3: UK seller with VAT on fees

Percentage fees are 6.5% + 4% + 0.48% regulatory = 10.98%, and VAT at 20% lifts that to about 13.18%. Fixed fees of £0.16 + £0.20 become about £0.43 with VAT. For £15 profit, £10 materials and £6 postage: order total = (£15 + £10 + £6 + £0.43) ÷ 0.8682 = £36.20, so the item price is £30.20. If you are VAT-registered and reclaim the VAT, use 10.98% and £0.36 instead.

Tips for using it

  • Use the rates on your own Etsy fee statement, since fees change and vary by country. See the Etsy fees guide and the regulatory operating fee guide.
  • Charge shipping at what you really pay, so the 6.5% fee isn't taken on postage you lose money on.
  • Round up to a clean price after the formula, never down.
  • Count your own time. If the profit target doesn't pay you for the hours, raise it. The freelance rate guide shows how.

Test a price in the Etsy seller profit calculator. It shows every fee and your final margin.

Last reviewed October 2026. Examples use published rates and are for planning; confirm figures in your Etsy payment account. See the disclaimer and methodology.