Etsy profit calculator (2025)
Etsy takes ~11% of every sale in fees — up to 25% with offsite ads. Enter your cost and price to see your real margin, with 2025 benchmarks by category.
- 1.Enter unit cost
- 2.Enter selling price
- 3.Read your gross margin
Key Takeaways
- →Etsy takes ~11% minimum per sale: 6.5% transaction + 3% + $0.25 processing + $0.20 listing. Offsite ads add 12-15% on top — mandatory for sellers over $10K/year
- →Median Etsy seller earns $574/month. Top 25% earn $1,000-5,000/month. Average is $2,965/month but skewed by super sellers (Etsy Annual Report, 2024)
- →Highest-margin categories: digital downloads (70-90%), personalized jewelry (45-65%), vintage (50-70%). Lowest: print-on-demand (20-35%)
- →Etsy fees vs Amazon Handmade: Etsy ~11% vs Amazon Handmade 15% — but Amazon waives the $39.99/mo subscription and has no listing fee
What is Etsy?
Etsy is an online marketplace for handmade, vintage, and craft items. Over 86 million active buyers and 5.6 million sellers use the platform. Unlike Shopify or your own store, Etsy provides built-in traffic — but charges fees on every sale.
Etsy fees per sale: $0.20 listing + 6.5% transaction fee + 3% + $0.25 payment processing. On a $40 item, Etsy takes $4.45 — roughly 11% before your product costs.
What sellers keep: After all Etsy fees and typical COGS (materials, labor, shipping), most handmade sellers keep 30-60% of the selling price. Digital product sellers keep 70-90% because COGS is near zero.
Does Etsy charge a fee?
Every Etsy sale triggers three mandatory fees, all applied to the total price including shipping:
| Fee | Rate | On a $40 sale | On a $100 sale | Notes |
|---|---|---|---|---|
| Listing fee | $0.20 flat | $0.20 | $0.20 | Per item. Renews every 4 months or when sold |
| Transaction fee | 6.5% | $2.60 | $6.50 | Applied to price + shipping + gift wrap |
| Payment processing | 3% + $0.25 | $1.45 | $3.25 | US rate via Etsy Payments. Varies by country |
| Total Etsy fees | $4.25 | $9.95 | 10.6% on $40 / 9.95% on $100 |
The percentage drops as price rises because the $0.20 listing fee and $0.25 processing fixed fees become a smaller share.
Selling a $10 item costs you ~14% in Etsy fees alone. Selling a $200 item costs ~9.7%. Price higher items are more fee-efficient (Etsy, 2025).
Shipping fees included in calculation. If you charge $8 shipping on top of a $40 item, Etsy calculates the 6.5% transaction fee and 3% processing fee on the full $48 — not just $40. Free shipping doesn't avoid this: if you bake shipping into your price, the fees still apply to the total.
What are Etsy offsite ads?
Etsy runs ads for your listings on Google, Facebook, Instagram, and Pinterest. If a buyer clicks one of these ads and purchases within 30 days, you pay an additional fee:
| Annual sales | Offsite ads fee | Opt-out? |
|---|---|---|
| Under $10,000 | 15% of order total | Yes — you can opt out |
| Over $10,000 | 12% of order total | No — mandatory |
Once you cross $10K in annual sales, offsite ads become mandatory. On a $100 sale from an offsite ad, you pay $12 on top of the ~$10 in standard fees — total ~22% to Etsy.
Track your offsite ad conversion rate in Shop Manager → Marketing → Offsite Ads. If ROAS is below 2x, the traffic isn't profitable (Etsy, 2025).
How much do Etsy sellers make?
| Metric | Value | Source |
|---|---|---|
| Average annual revenue per seller | $1,300 | Capital One Shopping, 2024 |
| Median monthly revenue | $574 | Customcy, 2024 |
| Average monthly revenue | $2,965 | Customcy, 2024 |
| Top 25% monthly revenue | $1,000–$5,000 | Customcy, 2024 |
| Super sellers monthly revenue | $174,410 avg | Customcy, 2024 |
| Sellers who are sole proprietors | 89% | Etsy, 2024 |
| Sellers working from home | 97% | Etsy, 2024 |
| Sellers who are women | 80% | Etsy, 2024 |
The average ($2,965/mo) is heavily skewed by super sellers. The median ($574/mo) tells the real story — half of all Etsy sellers make less than $574/month.
Etsy contributes 11% of household income on average. For 29% of sellers, it's their primary income source (Etsy Annual Report, 2024).
What are the best things to sell on Etsy?
| Category | Avg price range | Typical margin after fees | GMS share | Notes |
|---|---|---|---|---|
| Digital downloads | $3–$15 | 70–90% | Growing | Near-zero COGS — highest margin category |
| Personalized jewelry | $20–$80 | 45–65% | ~20% of GMS | Etsy's largest category. Personalization commands premium |
| Home & Living | $15–$100 | 35–55% | ~25% of GMS | Top category by sales volume. Seasonal peaks in Q4 |
| Craft supplies | $5–$30 | 40–60% | ~10% of GMS | Repeat buyers, lower AOV |
| Apparel | $25–$80 | 30–50% | ~12% of GMS | High return rates reduce effective margin |
| Wedding supplies | $10–$60 | 45–65% | Seasonal | Peak spring/summer. Personalized invitations = high margin |
| Vintage items | $20–$200 | 50–70% | ~8% of GMS | No production cost — sourcing skill is the value |
| Print on demand | $15–$40 | 20–35% | Growing | Lower margin due to fulfillment cost (Printful, Printify) |
| Pet products | $10–$50 | 40–55% | Growing | Passionate buyers, high repeat rate |
Digital downloads are the most profitable category on Etsy — you create once, sell unlimited copies, and COGS is zero.
A $7 printable planner template that sells 100 copies/month generates ~$600 profit after all Etsy fees. Home & Living is the largest category by total GMS ($2.6B+), but margins are lower because of material and shipping costs (Etsy Annual Report, 2024; GodAddy, 2025).
Etsy fees vs Shopify vs eBay vs Amazon
| Factor | Etsy | eBay | Shopify | Amazon |
|---|---|---|---|---|
| Monthly fee | $0 (optional $10 Etsy Plus) | $0–$3,000/yr (store plans) | $39–$399/mo | $39.99/mo |
| Per-listing fee | $0.20 | $0.35 (after 250 free) | None | None |
| Transaction/seller fee | 6.5% | 13.25% (most categories) | None | 8–15% referral |
| Payment processing | 3% + $0.25 | Included in 13.25% | 2.5–2.9% + $0.30 | Included in referral |
| Per-order fixed fee | — | $0.30–$0.40 | $0.30 | Per-item fees vary |
| Total fee on $40 sale | $4.25 (10.6%) | $5.70 (14.3%) | $1.46 + sub (3.7% + sub) | $4.80–$6.00 (12–15%) |
| Total fee on $100 sale | $9.95 (10.0%) | $13.65 (13.7%) | $3.20 + sub (3.2% + sub) | $11–$15 (11–15%) |
| Built-in traffic | 86M active buyers | 132M active buyers | None — you drive traffic | 200M+ Prime members |
| Best for | Handmade, vintage, craft | Used goods, electronics, collectibles | Own brand, DTC | Mass-market, FBA logistics |
Etsy is cheapest per-sale of all marketplaces (10-11% vs eBay 13-14% vs Amazon 12-15%). But Shopify is cheapest overall if you can drive your own traffic — 3-4% in payment processing vs 10%+ on marketplaces.
The trade-off: Etsy gives you 86M buyers for free; Shopify gives you 0. Most successful sellers use both — Etsy for discovery, Shopify for repeat customers and brand control. See also: Shopify fees breakdown (Etsy, eBay, Shopify, Amazon fee pages, 2025).
Etsy vs eBay: which is better to sell on?
| Category | Better platform | Why |
|---|---|---|
| Handmade jewelry | Etsy | Buyers expect handmade. Etsy's audience pays for craft |
| Vintage clothing | Etsy | Curated, style-conscious audience. eBay skews bargain hunters |
| Used electronics | eBay | Largest secondhand electronics market. Buyer protection for tech |
| Collectibles & cards | eBay | Auction format, collector community, authentication services |
| Craft supplies | Etsy | DIY/maker audience actively searching for materials |
| Mass-produced goods | eBay | No handmade requirement. Broader product policies |
| Digital downloads | Etsy | eBay doesn't support digital product delivery well |
| Home decor (custom) | Etsy | Personalization is Etsy's strongest search category |
| Auto parts | eBay | Specialized vehicle part compatibility system |
| Wedding items | Etsy | Etsy dominates wedding planning searches |
If your product is handmade, vintage, personalized, or creative — sell on Etsy. If your product is mass-produced, used, or appeals to bargain hunters — sell on eBay.
If you sell in both categories, run both stores. eBay's final value fee (13.25%) is higher than Etsy's (10-11%), but eBay gives access to 132M buyers vs Etsy's 86M (eBay, Etsy, 2025).
Etsy vs Amazon Handmade: which is better for artisans?
| Factor | Etsy | Amazon Handmade |
|---|---|---|
| Listing fee | $0.20 per item | $0 — no listing fees |
| Selling fee on $50 item | ~$5.50 (11%) — 6.5% transaction + 3% + $0.25 processing + $0.20 listing | ~$7.50 (15%) — flat 15% referral fee (includes processing) |
| Monthly subscription | $0 (Etsy Plus $10/mo optional) | $0 — $39.99/mo Professional plan is waived for Handmade sellers |
| Getting started | Instant — open a shop in minutes | Application required — Amazon reviews your products, process, and workspace. Takes 1-3 weeks |
| Buyer audience | 86M buyers seeking handmade and vintage | 300M+ Amazon buyers, but Handmade is a small subsection |
| Product restrictions | Handmade, vintage (20+ years), craft supplies | Handmade only — no vintage, no digital downloads, no resale |
| Branding | Shop banner, bio, story — moderate customization | Artisan profile page — limited customization within Amazon's layout |
| Offsite ads | 12-15% fee if sale comes from Etsy's offsite ad | No equivalent — Amazon handles all advertising internally |
Amazon Handmade charges a flat 15% per sale vs Etsy's ~10-11%. But Amazon has zero listing fees and waives the $39.99/mo subscription.
The real difference is audience intent. Etsy buyers come specifically looking for handmade — they expect craft, story, and uniqueness. Amazon buyers mostly shop for convenience and price.
If your products compete on uniqueness, Etsy wins. If your handmade products can compete in a search result next to mass-produced alternatives, Amazon's 300M buyers give you more volume (Amazon Handmade, Etsy, 2025).
How to start an Etsy shop
| Step | What to do | Cost | Time |
|---|---|---|---|
| 1. Create account | Sign up at etsy.com/sell | Free | 5 min |
| 2. Set shop preferences | Language, country, currency | Free | 5 min |
| 3. Name your shop | 4-20 characters, no spaces. Check availability | Free | 10 min |
| 4. List your first product | Photos, description, price, shipping, tags | $0.20 | 30-60 min |
| 5. Set up Etsy Payments | Connect bank account for payouts | Free | 10 min |
| 6. Set shipping profiles | Define shipping costs by region | Free | 15 min |
| 7. Complete About section | Tell your maker story — buyers value authenticity | Free | 20 min |
| 8. Open your shop | Hit publish — shop is live | Free | 1 min |
Minimum cost to launch: $0.20 (one listing fee). No monthly subscription required.
Etsy has near-zero barrier to entry, but having one listing won't generate sales.
Top-performing new shops launch with 20-30 listings in a focused niche, invest $50-100 in product photography, and optimize all 13 tags per listing for search. Etsy SEO matters more than any other marketplace because 88% of Etsy traffic comes from search — either Etsy's internal search or Google (Etsy, 2025).
How to increase Etsy sales and profit margins
| Strategy | Margin impact | Effort |
|---|---|---|
| Raise prices 10-20% | Direct margin gain | Low |
| Offer free shipping (baked into price) | Etsy search boost → more sales | Low |
| Switch to digital products | +30-50% margin (zero COGS) | Medium |
| Add personalization upcharge | +$5-15 per order at no extra cost | Low |
| Bundle products | Higher AOV, same shipping cost | Medium |
| Build email list → move to Shopify | Eliminate 10% Etsy fees on repeat buyers | Hard |
| Optimize Etsy Ads (not offsite) | Control CPC vs uncontrolled offsite ads | Medium |
| Negotiate supplier prices at volume | -10-20% COGS | Medium |
| Improve photos → higher conversion | More sales on same traffic | Medium |
The single highest-impact move is switching from physical-only to physical + digital product mix.
A shop selling $25 handmade candles at 40% margin earns $10/sale. The same shop adding a $7 digital "candle care guide" PDF earns $6.30/sale at 90% margin — almost the same profit per transaction with zero materials or shipping.
Diversify into digital to compound margins. See also: retail margin calculator (PrintKK, 2025).
Frequently Asked Questions
FAQ
How much does Etsy take from a sale?
Etsy takes a minimum of ~10% on every sale: $0.20 listing fee + 6.5% transaction fee + 3% + $0.25 payment processing.
On a $40 sale: $4.25.
On a $100 sale: $9.95.
If the sale came from an Etsy offsite ad, add another 12-15%, bringing total fees to 22-25% (Etsy, 2025).
Is selling on Etsy worth it?
For handmade, vintage, and creative products — yes. Etsy gives you access to 86 million active buyers with zero upfront cost. Average seller ROAS on the platform is positive.
But margins are tight at low price points — a $10 item loses ~14% to fees before COGS. Price above $25 for viable margins.
80% of Etsy sellers are women running home-based sole proprietorships (Etsy Annual Report, 2024).
Is Etsy free to sell on?
No. Etsy charges $0.20 per listing with no monthly subscription required (unlike Shopify's $39/mo or Amazon's $39.99/mo). Optional Etsy Plus costs $10/month and includes 15 listing credits and $5 in Etsy Ads credits.
Total fees per sale average 10-13% of the sale price, or up to 25%+ if offsite ads trigger.
Some new sellers also report a one-time setup fee of $15-$29, which may be refunded after your first sale (Etsy, 2025).
Does Etsy charge a fee to list items?
Yes — $0.20 per listing, per item. Multi-quantity listings pay $0.20 when listed, then another $0.20 each time an item from that listing sells.
Listings expire after 4 months and auto-renew for another $0.20 unless you turn off auto-renewal (Etsy, 2025).
How to make money on Etsy?
Start in a focused niche with 20-30 listings. Optimize all 13 tags per listing for Etsy SEO — 88% of Etsy traffic comes from search. Use high-quality photos (Etsy recommends 5+ per listing), write keyword-rich descriptions, and price above $25 to keep margins viable after the ~10% fee floor.
The fastest path to profit: digital downloads (planners, templates, SVGs) at 70-90% margin with zero shipping or inventory costs.
Consistency matters — shops active 3+ years average 138 monthly sales vs 94 for first-year shops (Customcy, 2024).
When does Etsy pay sellers?
Etsy deposits to your bank account on a schedule you choose: daily, weekly, bi-weekly, or monthly. Default for new sellers is weekly (every Monday) during the first 90 days.
After 90 days, funds are available next business day. Bank processing takes 2-3 business days on top.
Minimum deposit threshold is $25 in the US. Etsy deducts all fees before depositing (Etsy, 2025).
Etsy fees vs Shopify: which is cheaper?
Per sale: Shopify is cheaper — 2.9% + $0.30 ($3.20 on $100) vs Etsy's 10% ($9.95 on $100).
Monthly: Shopify charges $39-$399/month subscription and gives you zero built-in traffic.
Most new sellers start on Etsy for free traffic, then add Shopify for repeat customers and brand control. See also: Shopify fees breakdown (Shopify, 2025).
How to reduce Etsy fees?
You can't negotiate Etsy's transaction or processing fees — they're flat rates. But you can:
- Opt out of offsite ads if under $10K/year — this saves 15% on ad-driven sales
- Price higher to dilute the fixed $0.20 + $0.25 fees
- Build an email list and move repeat buyers to your own Shopify store where fees are 3% instead of 10%+
- Use Etsy Plus ($10/mo) for 15 free listing credits ($3 value) and $5 in ad credits
What are the best things to sell on Etsy for profit?
Highest margin categories:
- Digital downloads (planners, templates, art prints) — 70-90% margin
- Personalized jewelry — 45-65% margin
- Vintage items — 50-70% margin, no production cost
- Wedding supplies — 45-65% margin, seasonal demand
Lowest margin: print-on-demand (20-35%) and mass-category apparel (30-50%) due to fulfillment costs and competition (GodAddy, Printful, 2025).
Why is no one buying my Etsy?
Most common reasons:
- Not enough listings — shops with under 20 items get minimal search exposure
- Poor Etsy SEO — titles and tags don't match what buyers type
- Weak photos — blurry, dark, or inconsistent images kill conversion
- Pricing too high or too low for the category
- No reviews yet — new shops have a trust gap
Fix these first: add 20-30 focused listings, optimize all 13 tags per listing using Etsy search autocomplete, and invest in natural-light product photography.
88% of Etsy traffic comes from search — if your tags don't match buyer queries, your listings are invisible (Etsy, EverBee, 2025).
Why is Etsy closing accounts?
Etsy suspends or closes shops for:
- Selling prohibited items — mass-produced goods disguised as handmade, IP-infringing designs, regulated products
- High case rate — too many late shipments or "item not as described" complaints
- Multiple accounts without permission
- Identity verification failure
- Chargeback rate above 1%
To avoid suspension: ship on time with tracking, respond to messages within 24 hours, keep your case rate under 1%, and complete identity verification when prompted.
If suspended, you can appeal through Etsy's Trust & Safety team with documentation (Etsy, 2025).