Short answer: $4.25 — that is 10.6% of the sale. You keep $35.75 before your product cost and shipping.
| Fee | Amount |
|---|---|
| Listing fee | $0.20 |
| Transaction fee (6.5%) | $2.60 |
| Payment processing (3% + $0.25) | $1.45 |
| Total Etsy fees | $4.25 |
| You receive | $35.75 |
Assumes Etsy Payments in the US and no Offsite Ads attribution. If the sale is attributed to Offsite Ads, add 12% (sellers over $10k/yr) or 15% (under) of the order total on top.
$35.75 is not profit — it is what lands in your account before you pay for the item itself. Here is the real number at four common cost levels on a $40 sale:
| Your unit cost | Net profit | Margin |
|---|---|---|
| $8.00 | $27.75 | 69.4% |
| $12.00 | $23.75 | 59.4% |
| $16.00 | $19.75 | 49.4% |
| $20.00 | $15.75 | 39.4% |
Margin is net profit divided by the $40 sale price. It excludes inbound shipping, storage, returns and ad spend — all of which come out of the profit column above.
If your unit cost is $16.00, you need to charge at least $18.18 on Etsy just to break even, and $23.33 to clear a 20% margin. Anything under $18.18 loses money on every single order — which is exactly the kind of SKU that hides in a big catalog.
Change the price and cost in the calculator →
Is $4.25 the whole cost of selling at $40?
No. It is the whole of Etsy's fees. Your own costs — the unit cost, inbound freight, packaging, returns, and any advertising — come out of the $35.75 you receive.
Does the buyer's shipping charge change the fees?
Yes on all three marketplaces. Etsy charges its percentage fee on the total the buyer pays, shipping included, so a $40 item with $6 shipping is charged fees on $46, not $40.
How do I check this against my own catalog?
Paste your SKUs, prices and costs into the free calculator, or send a CSV for the $9 bulk audit and get every SKU's fees, margin and break-even price back within 24 hours.