How the price is worked out
Etsy's percentage fees grow with your price, so you cannot simply add them on top. The calculator takes all the percentage fees together, then solves for the price that leaves your target after fees and costs.
For a profit target: order total = (target profit + all costs + $0.20 + $0.25) ÷ k
For a margin target: order total = (all costs + $0.20 + $0.25) ÷ (k − margin)
Item price = order total − shipping charged
Example: $10 profit with free shipping
Costs are $6 materials, $4.50 postage and $0.80 packaging, with US fee rates and no Offsite Ad. The keep rate is 90.5%, so the order total must be ($10 + $11.30 + $0.45) ÷ 0.905 = $24.03. Most sellers would round that to $24.50 or $24.99.
Choosing between profit and margin
A fixed profit is useful for cheap items, where a percentage would leave you only a few cents. A margin target is better for a whole range of products, because the profit grows with the price. Many sellers aim for at least a 30% margin after fees so there is room for discounts and the occasional Offsite Ads fee.
Check the result in the Etsy fee calculator to see every fee line by line.
Frequently asked questions
Should I include Offsite Ads in my price?
If your shop is enrolled, some of your sales will carry a 12–15% fee. Many sellers price for normal sales and keep enough margin to absorb it. Choose the Offsite Ads option above to see the worst case.
Is free shipping worth it on Etsy?
Etsy gives US listings with free shipping some visibility benefits. The postage still costs you money, so put your real shipping cost in the calculator and leave 'shipping you charge' at 0.
Why is the margin I asked for 'not reachable'?
Fees already take roughly 9.5% of every order, plus more with Offsite Ads. A margin target close to or above what remains cannot be reached, whatever the price.
Sources
Last reviewed: November 2026 · By Muhammad Shujah