Etsy charges five separate fees on every sale. Most sellers know about two of them. The other three eat into margins quietly, and by the time you notice, you have been underpricing for months.
This post breaks down every Etsy fee layer for 2026, walks through a real example on a $25 item, and shows you how to calculate your actual per-item profit so you can price correctly from day one.
Every Etsy sale triggers some or all of these fees. The first three are unavoidable. The last two depend on your advertising choices.
$0.20 per listing
Charged when you create a listing and again each time it sells (auto-renew). Listings expire after 4 months if unsold — another $0.20 to relist. Multi-quantity listings charge $0.20 per sale.
6.5% × (Item Price + Shipping Price)
Applied to the total order amount including the shipping price the buyer pays. This is Etsy’s main revenue cut. Increased from 5% to 6.5% in April 2022 and has held steady through 2026.
3% + $0.25 per transaction
Charged by Etsy Payments (their mandatory payment processor for most countries). This is comparable to Stripe or PayPal processing fees. The percentage applies to the total sale including shipping and sales tax collected.
15% of order total (12% if revenue > $10K/yr)
Only charged when a buyer clicks an Etsy-placed ad on Google, Facebook, Instagram, or Pinterest and purchases within 30 days. Sellers under $10,000/year in revenue can opt out. Sellers over $10,000 cannot opt out and pay 12%.
Cost-per-click, variable — typically $0.10–$0.50 per click
On-platform advertising you control. You set a daily budget. Etsy charges per click, not per sale. ROI varies wildly by category — track it weekly or turn it off.
A handmade item sells for $25 with $5 shipping charged to the buyer. Here is what Etsy takes:
| Fee | Calculation | Amount |
|---|---|---|
| Listing fee | Flat fee per sale | $0.20 |
| Transaction fee (6.5%) | 6.5% × ($25 + $5) | $1.95 |
| Payment processing | 3% × $30 + $0.25 | $1.15 |
| Total Etsy fees | $3.30 | |
| You receive | $30 − $3.30 | $26.70 |
That is 11% of your gross revenue going to Etsy before you account for materials, labor, packaging, or shipping costs. If an Offsite Ad triggered the sale, add another $4.50 (15% × $30), bringing the total to $7.80 — 26% of your gross.
The margin trap: A $25 item with $5 shipping collects $30 total. Subtract $8 in materials, $3 in packaging and shipping costs, and $3.30 in Etsy fees and you keep $15.70. If Offsite Ads triggered the sale, add another $4.50 and profit drops to $11.20. Many sellers set prices based on “materials × 3” without accounting for the full fee stack and discover they are barely breaking even.
The listing fee ($0.20) and payment processing flat fee ($0.25) are fixed per transaction. That means lower-priced items lose a larger percentage to fees.
| Item Price | Total Etsy Fees | Fee % | After Fees |
|---|---|---|---|
| $10 (free shipping) | $1.40 | 14.0% | $8.60 |
| $25 + $5 ship | $3.30 | 11.0% | $26.70 |
| $50 + $5 ship | $5.68 | 10.3% | $49.33 |
| $100 + free ship | $9.95 | 10.0% | $90.05 |
Below $15, fees consume 13–14% of revenue. Above $50, fees stabilize around 10%. This is why experienced Etsy sellers bundle products or raise prices — the fixed-fee components become less punishing at higher price points.
Etsy runs ads for your products across Google, Facebook, Instagram, and Pinterest. You do not control these ads. You do not choose the creative. You do not set the budget. And if a buyer clicks one and purchases within 30 days, you owe 15% of the entire order.
If you are under $10,000 and have not explicitly opted out, you are opted in by default. Check now.
Offsite Ads are profitable when two conditions hold: (1) the buyer would not have found you organically, and (2) your margins can absorb 15% on top of base fees. For high-margin items — digital downloads, printables, templates — 15% on top of 11% still leaves healthy profit. For low-margin physical goods with $5–10 in materials per unit, the math gets tight.
Check your Offsite Ads stats: Go to Shop Manager → Marketing → Offsite Ads. Etsy shows you total revenue and total fees from Offsite Ads. Divide fees by revenue — if the cost percentage is higher than your profit margin, opt out (if eligible) or raise prices to compensate.
Most sellers track revenue but not profit per item. The formula is simple but requires honest accounting:
Sale Price + Shipping Charged − All Etsy Fees − COGS − Actual Shipping Cost − Packaging
COGS = cost of goods sold (materials, labor time valued at your target hourly rate). Actual shipping cost is what you pay the carrier, which may differ from what you charge the buyer.
Run this calculation on your top 5 best-selling items. If any item shows less than 30% net margin after all costs, you are either underpriced or the item is not viable at current materials cost.
For tax purposes, Etsy reports your gross revenue on Form 1099-K (if you exceed $600 in annual sales). This includes the shipping the buyer paid. Etsy fees, shipping costs, and materials are deductible on Schedule C, but you need to track them yourself — Etsy does not itemize deductions for you.
The Etsy Seller Bookkeeping Template auto-calculates all five Etsy fee layers per item, tracks COGS, and generates a Schedule C summary for tax season. One spreadsheet, no subscription.
Get the Etsy Seller Bookkeeping Template — $29How much does Etsy take from each sale in 2026?
Etsy takes five separate fees from each sale: a $0.20 listing fee, a 6.5% transaction fee on the sale price including shipping, a 3% + $0.25 payment processing fee, an optional 15% Offsite Ads fee on sales from Etsy-placed ads, and a 12% Etsy Ads fee if you run on-platform advertising. On a typical $25 item with $5 shipping, the total Etsy fees (before any ad fees) come to approximately $3.30, leaving you with $26.70 before your own costs.
What is the Etsy transaction fee for 2026?
The Etsy transaction fee is 6.5% of the total order amount including the shipping price the buyer pays. This fee applies to every sale. If your item sells for $25 with $5 shipping, the transaction fee is 6.5% of $30 = $1.95. This increased from 5% to 6.5% in 2022 and has remained at that level through 2026.
How do Etsy Offsite Ads fees work?
Etsy runs ads for your products on Google, Facebook, Instagram, and Pinterest. If a buyer clicks one of those ads and purchases within 30 days, Etsy charges you an Offsite Ads fee. The rate is 15% of the order total for sellers earning under $10,000/year. Sellers earning over $10,000/year pay 12% and cannot opt out. Sellers under $10,000 can opt out in Shop Manager under Settings → Offsite Ads.
Can I calculate my actual profit per Etsy sale?
Yes. Subtract all five Etsy fee layers, your cost of goods (materials, labor, packaging), and your shipping cost from the sale price. A $25 item with $5 shipping, $5 in materials, $3 in packaging and shipping costs, and $3.30 in Etsy fees leaves a net profit of roughly $18.70. Tracking this per-item is critical because many sellers discover they are losing money on lower-priced items once all fees are accounted for.
What is the Etsy listing fee?
Each listing costs $0.20 and lasts for four months or until the item sells. When an item sells, the listing automatically renews for another $0.20. Multi-quantity listings charge $0.20 for the initial listing and $0.20 per additional sale. If you list 100 items, the upfront listing cost is $20 before any sales.