Etsy Price Calculator

Enter your costs and target profit margin to get your break-even price and the price to charge after all Etsy fees.

Production Costs
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Target Profit
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Enter your costs

Add material cost, labor, or overhead to calculate the right listing price.

Once you're priced right, protect your ad spend

SafeHand automatically pauses Etsy Ads when your ROAS drops below break-even — so you only pay for ads that work.

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How to price items on Etsy

A price that “looks competitive” is not the same as a price that makes money. Before you compare with other shops, work out the lowest price that covers what one sale costs you. This Etsy price calculator does that in four steps:

  1. Add up your costs per item: materials, your labor (hours × an hourly rate you would accept), packaging and other overhead.
  2. Add shipping if you offer free shipping. The label comes out of your price, so it is a cost.
  3. Cover Etsy's fees. Fees are a percentage of the price, so they can't simply be added on top; the price has to be solved for.
  4. Add your profit margin. The margin is the share of the price you keep after costs and fees.

The formula

Etsy takes 9.5% of the price (6.5% transaction + 3% payment processing) plus $0.45 per order ($0.20 listing + $0.25 payment). So:

Break-even price = (costs + $0.45) ÷ (1 − 0.095)
Price for a target margin = (costs + $0.45) ÷ (1 − 0.095 − margin)

With Offsite Ads ticked, the calculator adds the 15% Offsite Ads fee to the percentage, which shows the price you would need if every sale came from Offsite Ads.

Worked example

A candle: $6 of materials, 30 minutes of labor at $15/hour ($7.50), $1.50 of packaging, and a $5 label because you offer free shipping. Total cost: $20.

Break-even price: ($20 + $0.45) ÷ 0.905$22.60
Price for 30% margin: ($20 + $0.45) ÷ 0.605$33.80
Etsy fees at $33.80−$3.66
Costs−$20.00
Profit per sale (30% of $33.80)$10.14

Anything below $22.60 loses money on every order. Between $22.60 and $33.80 you make a profit, but less than your target margin.

What about the “materials + labor × 2 × 2” rule?

A common rule of thumb for handmade goods is to double materials plus labor for a wholesale price and double that again for retail. It is quick, but it ignores Etsy's fees and shipping, and it can be too high for cheap materials or too low for expensive ones. For the candle above it gives $54, well above the $33.80 that already earns 30%. Use the formula to find your floor, then decide where to sit above it based on your market.

Choosing a target margin

The margin needs to cover anything the formula doesn't: discounts, refunds, slow months and advertising. If you run Etsy Ads, your margin also sets your break-even ROAS. At a 30% margin, ads need a ROAS of at least 3.3x to pay for themselves (1 ÷ 0.30). Check this with the Etsy ROAS calculator, and see what is a good ROAS on Etsy for how to use it.

After you set the price

Once the listing is live, check real orders with the Etsy profit calculator. It includes the shipping you charge and the fees on it, so you can confirm each sale earns what you planned.

Frequently asked questions

How do I price items on Etsy?

Add up everything one sale costs you (materials, your labor at an hourly rate, packaging and other overhead, plus shipping if you offer free shipping), then set a price that covers those costs, Etsy fees and the profit margin you want. This calculator works that price out for you.

How is the minimum (break-even) price calculated?

Break-even price = (your costs + fixed fees) ÷ (1 − percentage fees). The percentage fees are the 6.5% transaction fee and 3% payment processing fee; the fixed fees are the $0.20 listing fee and $0.25 payment fee. At that price you make exactly $0 profit.

Should I include shipping in my Etsy price?

If you offer free shipping, yes: the label cost comes out of your price, so include it in your costs. If you charge the buyer for shipping instead, remember Etsy still takes its transaction and payment fees on the shipping amount.

What profit margin should I aim for when pricing?

Pick a margin that still leaves room for advertising, discounts and refunds. If you plan to run Etsy Ads, the margin also sets your break-even ROAS: a 30% margin needs at least 3.3x ROAS for ads to pay for themselves.

Why am I losing money on Etsy even with sales?

Usually because the price does not cover every cost: unpaid labor, packaging, free shipping, fees on shipping, or ad spend. Enter all of them here to see your true break-even price.

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