Etsy pricing calculator: what should you charge?
Most handmade pricing formulas forget that Etsy's fees are a percentage of your price, and that your time is a cost. Enter what one item costs you to make and ship. Get the price that pays you for your hours and still leaves the profit you want. Free, nothing leaves your browser.
US Etsy rates as of October 2026: 6.5% transaction fee and 3% + $0.25 payment processing on the order total (item + shipping), $0.20 listing fee per item sold, Offsite Ads 15%. Sales tax left out. Rates change; check Etsy's fee page.
Priced right on paper. Is it profitable in practice?
Discounts, ad spend, refunds and label price changes eat the margin you priced in. The Seller Profit Sheet reads your monthly Etsy sales export and shows real net profit per product, with a red LOSING MONEY flag on anything underwater, plus a price calculator for every product you sell. Excel and Google Sheets, one-time $14, no subscription.
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The Etsy pricing formula
Add up what one sale costs you: materials, packaging, the shipping label and your time at an hourly wage. Call that cost. Etsy then takes about 9.5% of the order total plus $0.45 a sale. If you want a profit margin m on top, the order total has to be:
order total = (cost + $0.45) ÷ (1 − 0.095 − m)
Subtract the shipping you charge the buyer, and what's left is your item price. With $6 materials, $1 packaging, 30 minutes at $15 an hour, a $5 label, free shipping and a 20% margin, cost is $19.50, so the order total is $19.95 ÷ 0.705 = $28.30. You keep $5.66 profit after paying yourself $7.50 for the half hour.
Why "materials × 3" loses money
The popular rule of thumb (materials times 2 or 3) ignores your time, the shipping label and the fact that fees grow with the price. In the example above, materials × 3 is $18, which leaves you $3.84 for 30 minutes of work, under $8 an hour. The calculator shows what the rule gives for your numbers.
Free shipping or charge shipping?
For your profit it barely matters: Etsy charges its 9.5% on shipping too, so $5 moved from the shipping line into the item price costs the same in fees. What changes is how the listing looks. Etsy favors US listings with free shipping on orders over $35 in search, so many sellers build the label into the price.
Questions
Should I pay myself in the price?
Yes. If your time isn't in the cost, your "profit" is really your wage, and you'll find you can't afford to hire help or take a week off. Set a modest hourly rate and treat it as a cost like materials.
What profit margin should an Etsy shop aim for?
Many handmade sellers aim for 15 to 30% after paying themselves. Below 10% there's no room for a discount, a refund or a month of Etsy Ads.
How do I check my real margin after a month of sales?
Your pricing assumes every sale goes to plan. Your sales export shows what really happened. The Seller Profit Sheet above turns that export into profit per product.