Etsy charges in four layers, and sellers routinely only remember two of them. Here is the whole stack.
| Fee | Amount | Applies to |
|---|---|---|
| Listing fee | $0.20 | Per listing, per 4 months, and again on each renewal after a sale |
| Transaction fee | 6.5% | Item price + shipping + gift wrap you charge |
| Payment processing | 3% + $0.25 | Total the buyer pays (US rate; varies by country) |
| Offsite Ads | 12% or 15% | Only on orders attributed to an Etsy-bought ad |
Offsite Ads is 15% for shops under $10k/yr in sales (optional) and 12% for shops over $10k/yr (mandatory, capped at $100 per order).
$24 handmade item, $5 shipping charged, materials cost $6, no Offsite Ads:
| Buyer pays | $29.00 |
| Listing fee | -$0.20 |
| Transaction fee (6.5% of $29.00) | -$1.89 |
| Payment processing (3% + $0.25) | -$1.12 |
| Materials | -$6.00 |
| Profit | $19.79 |
Now the same order with Offsite Ads at 15%: another -$4.35, dropping profit to $15.44. That single line is why an ad-attributed order can feel like it barely paid — and why you should price with it in mind if you're in the mandatory tier.
Each sale auto-renews the listing at $0.20. On a $6 item that's 3.3% of revenue, on top of everything else. Low-price Etsy listings need noticeably fatter markups than sellers assume.
Checking one product? The free calculator does the full Etsy fee stack including Offsite Ads instantly — no signup.
Checking a whole catalog? The $9 bulk profit audit takes your CSV and hands back every SKU's fees, profit, margin and break-even price, with the money-losers flagged.
Exact fee breakdowns for the prices sellers ask about most.