Quick Answer
On a typical US sale, Etsy takes about 10% to 12% before advertising. That is a $0.20 listing fee, a 6.5% transaction fee, and 3% + $0.25 payment processing. On a $45 order (a $40 item plus $5 shipping), the fees are $4.73 and you keep $40.27 of the $45 the buyer paid. If the sale came through an Etsy-placed ad, Offsite Ads adds 15% (or 12% for shops over $10,000 a year). The calculator above does this for any price, with or without ads, in your browser and with no sign-up.
1. The Real Cost of Selling on Etsy (The 10%+ Reality)
Most new sellers price an item, make a sale, and then check the payout. It is smaller than expected, and the reason is that Etsy's fees are not one fee. Three charges hit every order, and a fourth appears when an ad brings the buyer.
Etsy Fees & Payments Policy (US, 2026): Listing fee $0.20 per listing. Transaction fee 6.5% of the total sale price, including shipping and gift wrap. Payment processing (Etsy Payments) varies by country, and is 3% + $0.25 per order for sellers in the US.
| Fee | Rate | Charged on | When it applies |
|---|---|---|---|
| Listing fee | $0.20 | Each listing | When you publish, and again when it renews (every 4 months) |
| Transaction fee | 6.5% | Item price + shipping + gift wrap | Every sale |
| Payment processing | 3% + $0.25 (US) | The order total | Every sale through Etsy Payments |
| Offsite Ads fee | 15% or 12%, max $100 | The order total | Only when an Etsy-placed ad brings the buyer |
The Etsy transaction fee is the largest of the three standard fees. It is 6.5% of everything the buyer pays for the item, including the shipping you charge. The Etsy payment processing fee is the second, and its fixed $0.25 makes it heavier on cheap items. The $0.20 listing fee is the smallest, but it is charged per listing, so it repeats.
Effective rate by order size (US, no ads)
The listing fee and the $0.25 are fixed costs, so the Etsy seller fees for 2026 take a bigger share of small orders. Assume the buyer's order total equals the price shown, with free shipping:
| Order total | Fees | Seller keeps | Effective rate |
|---|---|---|---|
| $10 | $1.40 | $8.60 | 14.00% |
| $30 | $3.30 | $26.70 | 11.00% |
| $50 | $5.20 | $44.80 | 10.40% |
| $100 | $9.95 | $90.05 | 9.95% |
Fees = $0.20 + (6.5% × Total) + (3% × Total + $0.25)
= $0.45 + 9.5% × TotalThat formula is the quick version of how much Etsy takes per sale: $0.45 plus 9.5% of the order total. It is the reason the "10% rule" is only a rule of thumb. A $10 sale pays 14%.
2. Step-by-Step Math (A Worked Example)
The scenario: A US seller sells a $40 item with $5 shipping to a US buyer. The buyer pays $45 (before sales tax).
Listing fee = $0.20
Transaction fee = 6.5% × $45.00 = $2.93
Processing fee = (3% × $45.00) + $0.25 = $1.60
Total fees = $0.20 + $2.93 + $1.60 = $4.73
You keep = $45.00 − $4.73 = $40.27The effective fee rate is $4.73 ÷ $45.00 = 10.5% of the order total.
The cost most sellers forget: postage
The $40.27 still includes the $5 the buyer paid for shipping. If the label costs you $5.00, you are left with $35.27 to cover your materials, time, and profit. Etsy fees are calculated on the shipping money, but the shipping money is not yours to keep. When you check your margin, subtract the postage before you decide whether the sale was worth it.
3. The Variable Costs: Offsite Ads & Regulatory Fees
Etsy Offsite Ads
Etsy advertises your listings on external sites such as search engines and social platforms. When a buyer clicks one of those ads and buys from your shop within a set attribution window (Etsy uses 30 days), Etsy charges an advertising fee on the order.
- Under $10,000/year: 15% fee, you can opt out.
- Over $10,000/year: 12% fee, participation is mandatory.
Two points make this easier to plan around:
- It only applies to sales that come directly from an Etsy-placed ad. Organic sales pay 0%.
- The cap is $100 per order. This protects sellers of high-ticket items.
Regulatory operating fees
In some countries, Etsy adds a regulatory operating fee to each order to cover local digital-services regulations. It is a small percentage of the order total. Rates published in Etsy's schedule include examples such as 0.48% for the UK, 0.50% for Canada, and 1.14% for France. US sellers do not pay a regulatory operating fee.
4. How to Price to Keep Your Margin
How to price on Etsy comes down to one idea: start from the profit you want and work backward, rather than starting from the price you would like.
The pricing formula
If you offer free shipping, the order total equals the item price P. With C as your cost of materials and labor, S as your postage cost, π as the profit you want, and a as the Offsite Ads rate (0 if none):
P = (π + C + S + $0.45) ÷ (1 − 0.095 − a)Example: Materials and labor $12, postage $5, desired profit $15. Organic sale (a = 0):
P = (15 + 12 + 5 + 0.45) ÷ 0.905 = 32.45 ÷ 0.905 = $35.86What "free shipping" really changes
Offering free shipping shifts the cost of postage from the buyer's line to your item price. It does not change Etsy's cut, because the transaction fee and processing fee apply to the total the buyer pays, shipping included.
Bundle low-cost items
The $0.20 listing fee and the $0.25 fixed processing fee add up to $0.45 per order. On a $10 item that is 4.5% before any percentage. Bundling spreads those fixed costs, and it also saves a shipping label.
5. Deep, Exhaustive FAQ
How much does Etsy take per sale?
As a rule of thumb, about 10% to 12% before Offsite Ads on a typical US sale. The exact formula is $0.45 plus 9.5% of the order total. A $100 order costs $9.95. If the sale came through an Offsite Ad, add 15% (or 12% for shops above $10k/yr).
Do I have to pay the $0.20 listing fee if my item doesn't sell?
Yes. The listing fee is charged up front when you publish a listing, whether or not it sells. A listing stays active for four months. When it expires, you can renew it for another $0.20.
Does Etsy charge fees on shipping?
Yes. The 6.5% transaction fee applies to the total amount the buyer pays for the item, including the shipping price you charge and any gift wrap. The transaction fee does not apply to sales tax collected from the buyer.
Can I opt out of Etsy Offsite Ads?
Only if your shop has made less than $10,000 in sales over the past 365 days. Below that level, you can turn Offsite Ads off and avoid the 15% fee. Once your trailing 365-day sales reach $10,000, participation is required at 12%.
Are Etsy fees tax deductible?
Yes. Listing, transaction, processing, and advertising fees are ordinary business expenses. For a sole proprietor, they are generally deducted on Schedule C. Report your gross sales as income and deduct the fees separately.
Santanu Sarma
Economics Researcher & Creator of GetInvoicePDF.com
Santanu specializes in public finance and econometrics, holding an Economics Honors from Bhattadev University. He builds high-precision financial models and calculators to help independent professionals optimize tax compliance.
Primary sources used in this guide
- Etsy Fees & Payments Policy (listing, transaction, processing, and Offsite Ads)
- IRS guidance on Form 1099-K and third-party settlement organizations
- IRS Schedule C (Form 1040) instructions, Profit or Loss From Business