Etsy Break-Even Calculator (2026)
Find the minimum listing price and units needed to cover all costs on Etsy — including the 6.5% transaction fee and Etsy Payments processing.
By Marginory team · Online sellers with hands-on experience across Etsy, Shopify & PODUpdated Fee data verified against official platform documentation
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Break-Even Analysis
Break-even price (per unit)$9.12
Contribution margin per unit$14.38
Etsy break-even formula (2026)
Break-even price: (Product cost + Shipping + Packaging + $0.25) / (1 − 6.5% − 3%)
Contribution margin: Sale price − Product cost − Etsy transaction fee − Payment fee
Break-even units: Monthly fixed costs / Contribution margin per unit
Assumptions:
- Etsy transaction fee: 6.5% of sale price
- Etsy Payments (US): 3% + $0.25 per transaction
- Listing fee ($0.20) not included in formula — add to product cost if needed
- Offsite Ads not included — add 12% or 15% to platform fee rate if applicable
Source: https://www.etsy.com/legal/fees/ · Last verified: 2026-07-02
Etsy break-even price by total cost
Minimum viable listing price at different cost levels (US fees, free shipping to buyer, 0% profit):
| Total cost (product + shipping + packaging) | Break-even price | Etsy fees at that price |
|---|---|---|
| $5.00 | $5.80 | $0.80 |
| $8.00 | $9.12 | $1.12 |
| $12.00 | $13.54 | $1.54 |
| $15.00 | $16.85 | $1.85 |
| $20.00 | $22.38 | $2.38 |
| $30.00 | $33.43 | $3.43 |
Break-even = (Cost + $0.25) / (1 − 6.5% − 3%). Anything below this price loses money before you even count your time. Rates verified July 2026.
Frequently Asked Questions
What is the Etsy break-even price?
The break-even price is the minimum you must charge to cover all costs with $0 profit. Formula: (Product cost + Shipping + $0.25) / (1 − 9.5%). Example: ($10 product + $5 shipping + $0.25) / 0.905 = $16.85. Charge less than this and you lose money.
How many sales do I need to cover my Etsy startup costs?
Break-even units = Fixed costs / Contribution margin per order. Contribution margin = Sale price − variable costs (Etsy fees + product cost + shipping). If you have $500 in equipment costs and earn $8 contribution margin per order, you need 63 sales to break even.
What costs should I include in my Etsy break-even calculation?
Variable costs per order: materials, packaging, shipping label, the $0.20 listing fee, and Etsy's fees (6.5% transaction + 3% + $0.25 payment processing). Fixed costs to recover: equipment, tools, software subscriptions, photography props, and initial inventory. Many sellers forget packaging and the listing fee — they add up at volume.
Does the $0.20 Etsy listing fee change my break-even price?
Slightly. Adding $0.20 to your costs raises the break-even price by $0.20 / 0.905 ≈ $0.22. For a $15 product it's negligible, but for low-priced items like stickers or digital downloads under $5, the listing fee is a meaningful percentage — always include it.
How do Etsy Offsite Ads change break-even?
If a sale comes through Offsite Ads, Etsy adds a 12% or 15% fee on that order. Your break-even price for those orders becomes (Costs + $0.25) / (1 − 9.5% − 12%) — roughly 15% higher. If more than ~20% of your orders come from Offsite Ads, price with the ad fee built in rather than treating it as an exception.