What fees does Etsy actually charge?
A $0.20 listing fee (renewed every 4 months or when an item sells), a 6.5% transaction fee on the item price plus shipping, and a payment processing fee of about 3% + $0.25. Sellers over $10k/yr trailing sales may also be enrolled in Offsite Ads at 12–15% on those referred sales. Rates change occasionally — verify current numbers on etsy.com/sell.
Why does the transaction fee apply to shipping too?
Etsy charges its 6.5% transaction fee on the total amount the buyer pays, which includes the shipping charge, not just the item price. That's why this calculator adds price and shipping together before applying fee percentages.
How can I raise my margin?
Raise your price, reduce COGS or actual shipping cost, or cut discretionary spend like Etsy Ads. Because payment processing has a flat $0.25 component, raising your price also slightly improves your percentage margin since the flat fee is diluted across a bigger sale.
Is the $0.20 listing fee per sale or per listing?
It's charged per listing, per 4-month renewal period or automatically whenever the listing sells and Etsy renews it. This calculator treats it as a per-sale cost since renewal-on-sale is the common case for made-to-order sellers.