Etsy Fees in 2026: What Etsy Takes From Each Sale (and How to Price for It)
Etsy fees are small one at a time and easy to forget when you set a price. Here's what they add up to on a real sale, and a simple way to build them into your prices.
The main US Etsy fees (as of October 2026)
| Fee | Amount | Charged on |
|---|---|---|
| Listing fee | $0.20 | Each listing, renewed every 4 months or when it sells |
| Transaction fee | 6.5% | Item price plus shipping and gift wrap |
| Payment processing (US) | 3% + $0.25 | The total the buyer pays |
| Offsite Ads (only if the sale came from one) | 15% (12% over $10k a year) | The order total, capped at $100 |
Worked example: a $25 item with $5 shipping
| Fee | Cost |
|---|---|
| Listing fee | $0.20 |
| Transaction fee: 6.5% of $30 | $1.95 |
| Processing: 3% of $30 + $0.25 | $1.15 |
| Etsy keeps | $3.30 |
| Extra if the sale came from an Offsite Ad (15% of $30) | $4.50 |
So on a normal sale, about 11% of what the buyer pays goes to Etsy. On an Offsite Ad sale it's more like 26%. Your price needs to survive both.
How to price so every fee is covered
Start from your real cost per item, then work up to a price:
- Add up your cost per item: materials, packaging, and your time at an hourly rate you'd actually accept.
- Pick a target margin: the share of the price you want to keep as profit.
- Divide, don't multiply. The price that hits your margin after percentage fees is:
(cost + fixed fees) ÷ (1 − fee % − margin %).
Example: cost $9.00, fixed fees $0.45 ($0.20 listing + $0.25 processing), percentage fees 9.5%, target margin 35%.
Price = $9.45 ÷ (1 − 0.095 − 0.35) = $9.45 ÷ 0.555 = $17.03. Round to $17 or $18.
(This simple version treats shipping as a pass-through. If you offer free shipping, add your shipping cost to the item cost first.)
Margin is not markup
A common mistake: adding 50% to your cost and thinking you have a 50% margin. Cost $10, price $15 is a 50% markup but only a 33% margin, because margin is profit divided by price. If you price with markup but think in margin, you make less than you planned.
Check your prices twice a year
Material costs creep up and platform fees change. Twice a year, rerun your numbers for your top sellers. If one has slipped below your target margin, raise the price a little or trim its cost.
Want this done for you?
The Pricing & Profit Calculator has Etsy, Shopify, Square and Amazon fees built in and shows the price that hits your target margin for every product.