Five fee layers
Listing fees keep a listing active. Transaction fees are a percentage of the sale. Payment processing has a percentage plus a fixed fee. Offsite ads charge a percentage when Etsy attributes an order to its advertising. Some regions add VAT on fees.
The layers have different bases, so a single “Etsy fee percentage” cannot describe the order. The breakdown table shows each base and amount.
The transaction fee includes shipping
Etsy's transaction fee applies to the item price plus shipping charged. A $5 shipping charge does not escape the fee; it increases the base. This is a common source of underestimation.
The payment processing fee also applies to the order total, plus the fixed fee. Enter the rates from your current seller dashboard, not a blog post.
Listing fees are monthly, not per order
Listing fees are incurred to keep listings active, whether or not an order arrives. This calculator takes monthly listing fees and divides them by monthly orders. A $2.50 monthly listing cost across 100 orders is $0.025 per order.
That amortization is small for a busy shop and meaningful for a low-volume one. It is also why the tool separates monthly costs from order-level fees.
Worked example
Item $40, shipping $5, COGS $12, monthly listing fees $2.50, 100 orders, transaction 6.5%, payment 3% + $0.25, offsite ads 15% on 10% of orders, VAT 0.
Fees are $0.025 listing + $2.925 transaction + $1.60 payment + $0.675 offsite ads = $5.225. Net profit is $27.775 and net margin is 61.72%. The effective fee rate is 11.61% of gross revenue.
Offsite ads are not charged on every order
Offsite ads apply only to orders Etsy attributes to its ads. Treating every order as attributed overstates fees. This calculator multiplies the ads rate by the attributed order share.
If you do not know the share, start with a conservative estimate and compare it with your Etsy ads report. The result is a planning estimate, not an attribution measurement.
Refunds, countries and currencies
Refunded orders are modeled as a stress case: revenue is zero, product cost is assumed recovered, and Etsy fees are treated as unchanged. Actual fee reversal depends on Etsy policy and the order, so verify before relying on it.
Rates and currencies differ by country. This tool uses USD and editable example rates. Do not mix a US payment rate with a UK VAT rate or convert currencies inside one calculation.