Etsy
Etsy fees, labor, and handmade profit
Figures below were checked against the published policy pages on October 8, 2026. They illustrate one supported case. They are not an invoice. The US fees used here are a $0.20 listing fee, a 6.5% transaction fee on the item plus buyer shipping plus gift wrap, and Etsy Payments processing of 3% + $0.25 on the order including tax and shipping. Remitted US sales tax is outside the transaction fee and outside revenue. It is inside the processing base.
Labor is a cost when the price is supposed to pay for your time. Cash left after Etsy fees can look fine while the hours spent making the item were never priced.
| Line | Amount |
|---|---|
| Item + buyer shipping | $55.00 |
| Sales tax, processing only | $4.40 |
| Listing fee, one charge | $0.20 |
| Transaction fee, 6.5% | $3.58 |
| Processing fee | $2.03 |
| Fees before Offsite Ads | $5.81 |
| Materials, outgoing shipping, packaging | $26.00 |
| Profit before any extra labor | $23.19 |
Add labor in hours, once
The $23.19 profit treats the $20 as materials, not as materials plus a hidden wage. If two hours at $15 an hour belong in the price, that is another $30 of cost and the result is a loss of $6.81. Enter hours and the hourly cost together. Entering the hours, the hourly cost, and a separate labor dollar amount counts the time twice.
Listing fees follow the number of listing or renewal charges you assign to the order. One order is not always one $0.20 charge. The processing fee’s $0.25 is once per order in this US model, not once per listing charge.
This is not a shop connection
Nothing in this preview reads an Etsy shop, an order file, or a bank payout. You type the amounts. If the payment method or currency is outside the reviewed US processing rate, the US 3% + $0.25 figure is the wrong rate to assume.
Sources and tools
Related guides
Common questions
Why include labor?
Money left after fees can overstate the result of a handmade order if the hours are part of what the price needs to cover.
Do all Etsy fees include sales tax?
No. In the supported US model, remitted tax is excluded from the transaction and Offsite Ads bases and included in payment processing.