M
MoneyLander
Popular searches
APR Calculator Take-Home Pay Three-Account System Electricity Cost Mortgage Stamp Duty

Etsy Fee Calculator UK

Last updated: April 2026

Etsy is the go-to marketplace for handmade, vintage and craft items in the UK, but its layered fee structure can be confusing for new sellers. Our Etsy fee calculator breaks down the listing fee, transaction fee, payment processing fee and any offsite ads charges so you can see exactly what you will keep from each sale.

Understanding your Etsy costs before setting prices is crucial for maintaining healthy profit margins, especially on lower-priced items where fees take a proportionally larger bite. Enter your sale details below. For information on registering as self-employed and reporting online income, visit GOV.UK.

Calculate Your Etsy Fees

Net profit
—
Total fees (inc. VAT)
—
Effective fee rate
—
VAT on fees
—

Fees include 20% UK VAT on all Etsy charges. Net profit does not include your cost of goods, packaging or actual postage costs.

Etsy charges a transaction fee of 6.5 per cent on the total sale amount, which includes the item price and the postage amount you charge the buyer. This is applied to every sale.

UK sellers using Etsy Payments pay a payment processing fee of 4 per cent plus £0.20 per transaction. Etsy Payments is mandatory for UK sellers and covers all buyer payment methods.

Yes. Etsy charges 20 per cent VAT on all of its fees for UK sellers, including the listing fee, transaction fee, payment processing fee and any advertising fees. If you are VAT-registered, you can reclaim this VAT on your VAT return.

Etsy Offsite Ads promote your listings on platforms like Google, Facebook and Instagram. Sellers who made less than $10,000 in the past 12 months can opt out. If opted in, you pay a 15 per cent fee on the sale price only when a buyer clicks an offsite ad and purchases within 30 days.

How Etsy Fees Work

Etsy charges several fees on each sale. The listing fee is 16 pence per item for a four-month listing period. The transaction fee is 6.5 per cent of the total sale amount including postage. The payment processing fee, charged through Etsy Payments, is 4 per cent plus 20 pence per transaction in the UK. These fees stack on top of each other, meaning the effective total fee on a sale is approximately 11 to 13 per cent depending on the item price.

Offsite ads is a programme where Etsy advertises your products on Google, Facebook and other platforms. If a buyer clicks an offsite ad and purchases within 30 days, an additional fee of 15 per cent of the sale applies, or 12 per cent if your shop earns more than 10,000 dollars annually. Sellers with annual revenue below 10,000 dollars can opt out of offsite ads, but those above this threshold are automatically enrolled and cannot opt out.

Handmade craft products displayed in an Etsy shop workspace

Pricing Your Products for Profit

To maintain a sustainable business on Etsy, you need to factor all fees into your pricing from the outset. A common approach is to calculate your total costs, including materials, labour, packaging and postage, then add your desired profit margin and finally add a buffer for Etsy fees. As a rough guide, increase your target selling price by 12 to 15 per cent to cover all platform fees. For handmade items, many successful sellers aim for a profit margin of 30 to 50 per cent after all costs including fees.

Free postage can improve your search ranking on Etsy but means absorbing the shipping cost within your item price. If you offer free postage, remember that Etsy’s transaction fee is calculated on the total order amount, so you are effectively paying fees on your postage cost too. Consider whether the improved visibility justifies this additional expense for your particular product range and price point.

Etsy vs Other Selling Platforms

Comparing Etsy’s fees with alternatives helps you choose the best platform for your products. eBay charges a final value fee of 12.8 per cent plus 30 pence for most categories but offers a broader audience. Setting up your own website using Shopify or WooCommerce avoids marketplace fees but requires you to drive your own traffic through marketing and SEO, which has its own costs. Many successful craft sellers use a combination of platforms, with Etsy providing discovery and their own website offering better margins for repeat customers.

Compare with eBay costs using our eBay fee calculator, or work out your overall margins with the profit margin calculator. For registering as self-employed, visit GOV.UK.

Related Calculators

eBay Fee Calculator Profit Margin Freelance Tax VAT Calculator

This calculator provides estimates for guidance only. Etsy fees and exchange rates may change without notice. This is not financial advice. For official fee information visit Etsy's fee policy.