Etsy Profit Calculator

See your real net profit on Etsy after listing fees, transaction fees, payment processing and your product cost — so you know exactly what you actually make per sale.

Listing Fee
Transaction Fee (6.5%)
Payment Processing (4% + £0.20)
Total Etsy Fees
Product + Shipping Cost
Net Profit
Profit Margin

⚠️ Based on UK Etsy Payments fee rates. Verify current rates at etsy.com/uk/fees before making pricing decisions.


About This Tool

Many Etsy sellers only think about the listing price and forget to factor in all four costs: the £0.16 listing fee, the 6.5% transaction fee (on price + shipping), the 4% + £0.20 payment processing fee, their actual product cost, and their actual postage cost. This tool combines all of them to show your real profit per sale.

A common mistake is treating the shipping charge as pure revenue. Etsy charges transaction and processing fees on the shipping amount too, and then you still have to pay for the actual postage. Use accurate numbers here for an honest picture of your margins.

Frequently Asked Questions

How do I improve my Etsy profit margin?

Three levers: raise your price (easiest if you have strong reviews and photos), reduce product cost (better suppliers, bulk ordering), or reduce shipping cost (negotiate with couriers, use Royal Mail business accounts). Often a small price increase has a bigger impact than significant cost cutting.

Should I offer free shipping on Etsy?

Etsy's algorithm favours listings that offer free shipping (especially to US buyers). If you offer free shipping, bake the postage cost into your item price. Run the numbers in this calculator with and without free shipping to see the margin impact before deciding.

Is Etsy still profitable in 2025?

Yes, but margins are tighter than they were before the fee increases. Products with strong differentiation and repeat buyers still perform well. The sellers struggling are those selling generic items in saturated categories where price competition erodes margins to near zero.

What is a good Etsy profit margin?

Target at least 30% net margin after all fees and costs. Below 20% leaves very little room for Etsy Ads, returns or price drops. Handmade sellers sometimes accept thinner margins because of the craft value, but digital product sellers on Etsy should aim much higher (60%+).