How Etsy fees work in 2026
For a US shop, most sales carry three fees. A $0.20 listing fee, a 6.5% transaction fee on the item price plus the shipping you charge, and a payment processing fee of 3% plus $0.25.
The processing fee is the one people get wrong. Etsy charges it on the full amount the buyer pays, including the sales tax Etsy collects for the state. The transaction fee does not apply to sales tax.
If the buyer found you through an Etsy Offsite Ad, there is one more fee: 15% of the order (item plus shipping) if your shop has never made $10,000 in a 12-month period, or 12% once it has. The 12% rate stays even if your sales drop later. Offsite Ads fees are capped at $100 per order.
Using it for digital downloads
Set shipping, materials and label cost to 0. Many states do not tax digital downloads, so set the sales tax rate to 0 too unless your buyers pay it. On a $12 digital product with no sales tax the fees come to about $1.59 ($0.20 listing, $0.78 transaction, $0.61 processing), so you keep roughly $10.41 before your own time and tools.
What this calculator leaves out
Sales tax Etsy collects goes to the state, so it is not counted as your revenue. It only appears in the processing fee. Currency conversion, Etsy Ads (onsite), Share & Save credits, the one-time shop setup fee and optional subscriptions are left out. Add them to your costs if they apply to you.
The formulas behind it
Every result cell is a plain spreadsheet formula, so you can check the math or rebuild it yourself.
| Cell | Result | Formula |
|---|---|---|
| B10 | Order total | =B2+B3 |
| B11 | Listing fee | =0.20 |
| B12 | Transaction fee | =B10*6.5% |
| B13 | Payment processing | =B10*(1+B4%)*3%+0.25 |
| B14 | Offsite Ads fee | =MIN(B10*B7%, 100) |
| B15 | Total Etsy fees | =SUM(B11:B14) |
| B16 | Fees as % of order | =B15/B10 |
| B17 | Your profit | =B10-B15-B5-B6 |
| B18 | Profit margin | =B17/B10 |
Sources
Rates checked (US). Platforms change fees from time to time.