Step 1: count every cost per order
List what one order really costs you: materials or supplier price, print-on-demand base price, postage label, packaging, labels, and a share of subscriptions (Printify Premium, eRank, Canva). Count your time too. Even $10 an hour on a 15-minute item adds $2.50.
Step 2: add Etsy’s fees properly
Etsy’s fees are mostly percentages of the order total, so you cannot just add them on at the end. A cost-plus price of “cost + 20%” leaves you short once fees are taken from the higher price. Work backwards from the margin you want, which the reverse calculator does for you.
Step 3: choose a target margin
For handmade and print-on-demand items, many sellers aim for 25–40% net margin after fees and costs, so there is room for discounts, refunds and Offsite Ads. Digital products can carry higher margins because there are no unit costs. Your margin should also cover any unpaid hours you count separately.
Step 4: free shipping vs charged shipping
Etsy charges fees on shipping either way, so moving postage into the item price does not change total fees. It changes how the price looks. Etsy gives search priority to US orders with free shipping over $35 in some cases, and many buyers now expect shipping to be included. Test both and keep whichever converts better.
| Order total (item + shipping) | $29.99 |
| Listing fee ($0.20, converted) | $0.20 |
| Transaction fee 6.5% | $1.95 |
| Payment processing | $1.15 |
| Total Etsy fees | $3.30 (11.0%) |
| Profit after costs of $12.50 | $14.19 |
Step 5: test discounts before you run them
A 20% sale comes straight off your margin. Use the discount field to check your profit at sale prices before you run Etsy sales events, and make sure an Offsite Ads order at the sale price still makes money.
Step 6: compare with the market
Search your main keyword on Etsy and in a research tool such as eRank or Marmalead. If your formula price is well above similar listings, compete on photos, reviews and personalization rather than cutting below your break-even. If it is well below, you are probably underpricing.
Run your own numbers
Plug in your real price, costs and country. Every fee updates as you type.
Open the Etsy fee calculatorFrequently asked questions
What is a good profit margin on Etsy?
There is no fixed rule, but 25–40% net after all fees and costs gives room for sales, refunds and ad fees. Below about 15%, one refund can wipe out the profit from several orders.
Should I include Etsy fees in my price?
Yes. Work them in by calculating the price from your target margin, not by adding a flat percentage to your costs.
How do I price print-on-demand items on Etsy?
Use the provider’s base cost plus their shipping as your item and postage costs, then set a price that hits your target margin even when Offsite Ads apply.
Last reviewed: October 2026. General information only — check providers' official sites for current features and pricing.