Etsy fees in this calculation
Presets reflect typical Etsy economics (verified 2026-07-23) — adjust every field to your actual numbers. Estimates only.
| Transaction fee On the item price + shipping you charge | 6.5% |
| Payment processing US rate — varies by country | ~3% + 25¢ |
| Listing fee Per listing / renewal — pennies, but real | $0.20 |
Worked examples
Handmade item, typical fees
| Selling price | $35.00 |
| All per-order costs | $17.78 |
| Contribution margin | $17.22 |
| Break-even ROAS | 2.03× |
Three stacked Etsy fees total ~$3.78 — about 11% of the price.
Digital download (no shipping, no materials cost per unit)
| Selling price | $12.00 |
| All per-order costs | $1.56 |
| Contribution margin | $10.44 |
| Break-even ROAS | 1.15× |
Near-pure margin: fees are the ONLY per-order cost, floor near 1.15×.
Break-even ROAS by margin — quick reference
| Gross margin (after fees) | Break-even ROAS |
| 20% | 5.00× |
| 25% | 4.00× |
| 33% | 3.03× |
| 40% | 2.50× |
| 50% | 2.00× |
| 60% | 1.67× |
Frequently asked questions
What fees does Etsy take from each sale?
Three stack on every order: the 6.5% transaction fee (charged on item price plus shipping you charge the buyer), payment processing (about 3% + 25¢ in the US), and the 20¢ listing fee. Together they typically take 10–12% of a physical item's price.
Is Etsy Ads worth it for my shop?
Only when its return clears your break-even ROAS. Etsy reports ad revenue per dollar spent — compare that number directly to the floor this calculator gives you. Below the floor, ads convert profitable organic sales into paid losses.
How is break-even different for digital products on Etsy?
With no materials or shipping, fees become your only per-order cost, so margins run 85%+ and break-even ROAS can approach 1.1–1.2×. That is why digital sellers can sustain far more aggressive ad spend than physical-goods shops.
Does Offsite Ads change my break-even?
Yes — Offsite Ads takes 12–15% of attributed orders on top of standard fees, and you cannot opt out above $10k revenue. For those orders, add the Offsite fee to "other costs": a $35 sale loses another $4.20–$5.25 of margin, raising the floor sharply.