Etsy Shipping Profit Calculator (2026)
Find the exact shipping amount to charge on Etsy to break even — accounting for Etsy's 6.5% transaction fee which applies to shipping charged to buyers.
By Marginory teamContent reviewed
Listing
Etsy's 6.5% transaction fee applies to this amount too
Key Etsy rule
Etsy's 6.5% transaction fee applies to item price + shipping you charge. So charging more for shipping increases your Etsy fee. "Free shipping" moves the cost into item price, which also gets the fee applied — but can improve search ranking.
Shipping Breakdown
Total Order Profit
Shipping pricing guidance
Worked example: free shipping vs charging postage
A $24 item, $8 to make, $6.50 to post.
| Postage in price | Charge $3 | Absorb postage | |
|---|---|---|---|
| Buyer pays | $30.50 | $27 | $24 |
| Etsy fees | −$3.35 | −$3.02 | −$2.73 |
| Profit | $12.65 | $9.49 | $6.77 |
Moving postage into the price keeps profit while showing "free shipping". Absorbing it without raising the price costs the full $6.50 less the fee saved on it.
Cost inputs are illustrative; fees are calculated with the same rates as the calculator above.
Etsy shipping fee formula
Assumptions
- Etsy transaction fee (6.5%) applies to item price + shipping charged — not your actual shipping cost
- Payment processing (US): 3% applied to total (item + shipping charged)
- Fixed payment fee ($0.25) is per transaction, not per shipping calculation
- Free shipping: fee applies to item price only, but you absorb shipping cost — may improve search ranking
Source: etsy.com/legal/fees/ · Last verified: 2026-10-11
Free shipping vs. charging separately on Etsy
Etsy's 6.5% transaction fee applies to the full amount the buyer pays — item price plus any shipping you charge. This means that whether you offer free shipping (rolling the cost into item price) or charge separately, the fee base is the same.
The key difference: Etsy's search algorithm has historically favored listings with free shipping for US domestic buyers. If you offer free shipping, make sure your item price covers the shipping cost plus the 6.5% fee on that amount.
Not sure whether to charge a flat rate or let Etsy calculate postage? Compare both in Etsy calculated shipping vs flat rate.
Review the market, fee bases and exclusions shown with this tool. Published rates and illustrative cost inputs have different certainty. Compare your breakdown with an actual order statement. Sources and methodology.