What percentage does Etsy take from sellers in 2026?

Etsy charges a 6.5% transaction fee on total sales (item price + shipping + gift wrap), a $0.20 flat listing fee per item (renewed every 4 months or upon sale), and a payment processing fee (3% + $0.25 in the US).

How much does Etsy Offsite Ads cost?

Etsy Offsite Ads charge 15% per attributed sale for shops earning under $10,000 annually (optional), and 12% per attributed sale for shops earning $10,000 or more (mandatory).

How do I calculate profit on Etsy?

Net Profit = Total Revenue (Item Price + Shipping Charged) minus Item Cost (COGS), Postage Paid, $0.20 Listing Fee, 6.5% Transaction Fee, and 3% + $0.25 Payment Processing.

What is the difference between optional and mandatory Etsy Offsite Ads?

Sellers earning under $10,000 in trailing 12-month revenue pay a 15% fee on sales driven by Offsite Ads and can opt out. Sellers making over $10,000 pay a discounted 12% fee and participation is mandatory.

What is the listing fee renewal rule on Etsy?

Each listing costs $0.20 USD to publish. When an item sells, Etsy renews the listing for another $0.20 USD for remaining quantity in stock. Unsold listings expire after 4 months.

2026 Etsy Seller Fee & Offsite Ads Engine

Etsy Fee & Profit Margin Calculator

Calculate exact listing renewal costs, 6.5% transaction cut, payment processing fees, and mandatory/optional offsite ads.

Product Pricing & Sourcing Costs

Item Selling Price ($)

Shipping Charged to Buyer ($)

Crafting / Material Cost ($)

Actual Shipping Postage Cost ($)

Etsy Offsite Ads Rate

Net Take-Home Profit$23.25

Net Profit Margin51.7%

Listing Renewal Fee ($0.20)-$0.20

Transaction Fee (6.5%)-$2.93

Payment Processing Fee-$1.60

Total Platform Fees-$4.73

SellerKit Analytics & Editorial Team

Senior E-Commerce Data Analysts & Financial Modelers

2026 Rate Schedule VerifiedE-Commerce Financial Analysis

Financial Modeling & Accuracy Disclaimer:Calculations generated by SellerKitHub tools rely on published marketplace fee rates (Amazon Seller Central 2026, Etsy Seller Handbook, eBay Merchant Terms). Estimates are for planning purposes. Final referral fees, dimensional weight packaging charges, and taxes may vary depending on category reclassifications, peak seasonal storage surcharges, and regional carrier postal rates.

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2026 Official Etsy Seller Fee Schedule Matrix

Comprehensive breakdown of mandatory and optional fees assessed by Etsy on seller transactions in 2026.

Fee Type	Calculation Basis	Rate (USD / Regional)	Requirement	Notes & Exclusions
Listing Fee	Per unique item listing	$0.20 USD	Mandatory	Renews automatically every 4 months or upon sale.
Transaction Fee	Item price + Shipping charged + Gift wrap	6.50%	Mandatory	Applied to total order amount before local sales tax.
Etsy Payments Processing	Total order revenue	3.00% + $0.25 USD	Mandatory	Varies by seller country (e.g. UK: 4% + £0.20, CA: 3% + $0.25 CAD).
Offsite Ads (<$10k/yr)	Ad-driven sales revenue	15.00%	Optional	Can be disabled inside Etsy Shop Settings.
Offsite Ads (>$10k/yr)	Ad-driven sales revenue	12.00%	Mandatory for Life	Applies automatically after hitting $10,000 trailing 365-day sales.

Worked Step-by-Step Etsy Shop Profit Examples

Example 1: Handmade Ceramic Mug ($28)

Selling Price: $35.00

Shipping Charged: $5.00 ($40 Total)

Sourcing Cost: $8.00

Actual Postage: $4.50

Listing Renewal Fee ($0.20): -$0.20

Transaction Fee (6.5%): -$2.60

Payment Processing: -$1.45

Total Platform Fees: -$4.25

Etsy Net Profit: $23.25 (58.1% Margin)

Example 2: Digital Printable Art ($12)

Selling Price: $28.00

Shipping Charged: $0.00

Sourcing Cost: $13.50

Actual Postage: $4.50

Listing Renewal Fee ($0.20): -$0.20

Transaction Fee (6.5%): -$1.82

Payment Processing: -$1.09

Total Platform Fees: -$3.11

Etsy Net Profit: $6.89 (24.6% Margin)

Example 3: Custom Leather Bag with 15% Ads

Selling Price: $65.00

Shipping Charged: $0.00

Sourcing Cost: $14.00

Actual Postage: $3.80

Transaction Fee (6.5%): -$6.43

Offsite Ads Cut (15%): -$9.75

Total Platform Fees: -$16.18

Etsy Net Profit: $31.02 (47.7% Margin)

E-Commerce Profit Masterclass

Optimizing Unit Economics & Hidden Fee Traps

How to structure product pricing, manage logistics, and protect your take-home margins.

1. The "Free Shipping Guarantee" Trap

Etsy strongly encourages sellers to offer "Free Shipping" on orders over $35 by granting priority search placement in US search results. However, shipping is never truly free. When offering free shipping, sellers must incorporate the average postage cost directly into the item retail price. Failing to bake postage into your base price erodes your net profit margin by 10% to 20% per sale.

2. Managing Offsite Ads Profitability

Offsite Ads can bring valuable incremental sales, but a 15% ad fee on top of standard 9.5% fees means Etsy takes roughly 24.5% of your total revenue. For low-margin items (like print-on-demand), this can swallow your entire profit. Calculate your net margin with Offsite Ads enabled to ensure your business remains profitable on ad-driven sales.

3. Accounting for Labor & Material Waste

Handmade sellers frequently underprice their craft by failing to include labor hours in their Cost of Goods Sold (COGS). Always calculate an hourly labor rate into your product sourcing cost alongside raw materials and packaging.

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Frequently Asked Questions

Etsy charges a 6.5% transaction fee on the total sale amount, including the item price, shipping charged to the buyer, and optional gift wrapping charges.