How to price on Etsy for the margin you want

Work backwards from the margin you want, not forwards from what other shops charge.

The formula

Most Etsy fees are a percentage of what the buyer pays, plus a couple of fixed amounts. So:

What you charge (item + postage) = (your costs + fixed fees) ÷ (1 − percentage fees − target margin)

Then take off the postage you charge to get the item price.

For a UK shop without a VAT ID, the percentage fees are 6.5% + 4% + 0.48% = 10.98%, plus 20% VAT on that, so about 13.2%. The fixed fees are the £0.20 processing fee and the $0.20 listing fee (about £0.15), plus VAT: about £0.42.

Example

Materials and packaging £8, postage £4, and you charge £4 postage. You want 30%. What you charge = (£12 + £0.42) ÷ (1 − 0.132 − 0.30) ≈ £21.86, so the item price is about £17.86. Check it in the calculator, which solves this for any country and also shows break-even.

Offsite Ads

If a sale comes through an Offsite Ad, another 15% (or 12%) of the order goes (max $100). On a 30% margin that halves your profit, so either price so that sales still pay off, or opt out if your shop is under $10,000 a year.

Rates from Etsy's help pages, checked 27 October 2026. Not financial advice.