This guide is practical and concise—examples first, formulas and caveats after. For quick calculations, jump to the linked calculator.
How to Price on Etsy to Hit a Target Margin
Etsy pricing is straightforward once you treat fees as part of cost and work backward from your target margin. This guide uses US rates; confirm your local fees.
What fees to consider
- Transaction fee (~6.5%) on item price + shipping.
- Payment processing (~3% + $0.25 fixed per order).
- Listing renewal $0.20 per item (optional, but common).
- Offsite ads (12–15%) if the sale is attributed to ads.
Pricing workflow
- Estimate item price candidates and shipping.
- Compute total fees and net payout.
- Subtract unit cost to get profit; compare to target margin.
- Iterate price until margin is at/above target.
Scenario examples
Example A: No offsite ads
Item $25, shipping $0, qty 1, cost $10. Fees ≈ $25×(6.5%+3%) + $0.25 + $0.20 = $2.83. Net ≈ $22.17. Profit ≈ $12.17. Margin ≈ 54.9%.
Example B: Attributed sale (12% offsite)
Same inputs but +12% offsite = +$3.00 fees. Profit falls to ≈ $9.17. If your target was 50% margin, raise price or reduce cost.
Free shipping?
Adding shipping into item price raises the fee base but can increase conversion. Test both: our Etsy Fee Calculator shows net payout for each scenario.
Coupons and sales
Percent‑off coupons reduce gross; fees apply to the discounted amount. When running a sale, ensure the estimated margin still clears your floor.
Checklist before publishing
- Price hits target margin with and without offsite ads.
- Photos, attributes, and keywords are complete (conversion matters more than squeezing a few cents of fees).
- You have a small buffer for seasonal fee changes.
Run your numbers in the calculator, then sense‑check with two or three competitor listings.