How to Price on Etsy (2026): Pricing Formula + Fee Calculator

Published on January 4, 2026

Updated Jan 16, 2026 - Sources [1] [2] [3]

This Etsy pricing guide shows a simple formula to price products, cover costs, include Etsy selling fees, and still hit your target profit margin.

Quick answer: required price = (total cost + fixed fees + target profit) ÷ (1 - total percent fees).

Quick pricing formula (2026)

Use your exact Etsy fee rates

Metric	Formula / note
Total cost	Materials + labor + overhead.
Required price	`(total cost + fixed fees + target profit) / (1 - total percent fees)`

Tip: Use the calculator to avoid manual fee math and confirm margin fast.

Open $25 pricing demoSee profit after Etsy fees.

If you sell on multiple platforms, compare Etsy pricing outcomes in our platform fee comparison guide.

Don't let pricing issues hinder your success any longer! This article will provide you with a simple and effective pricing formula to help you price your Etsy products with confidence, ensuring your hard work gets the return it deserves and generates a healthy profit.

Step 1: Calculate Your Total Costs

Any sound pricing strategy begins with a deep understanding of your costs. Ignoring costs makes any profit purely theoretical. Your total costs should include these three main components:

Material Cost

This is the cost of all the raw materials needed to produce your product. For example, if you make jewelry, this includes beads, wire, clasps, etc. Don't forget to account for small, seemingly insignificant items; they can add up to a significant expense.

Labor Cost

Your time is valuable! Calculate the hours required to produce each item and multiply it by a reasonable hourly wage you set for yourself. Even if it's a hobby, assign a value to your time—it reflects your professional skill and effort.

For example: If it takes you 2 hours to make a craft item and your target hourly wage is $20, your labor cost is $40.

Overhead Cost

These are expenses related to running your business that cannot be directly attributed to a single product. Examples include tool depreciation, studio rent (if applicable), Etsy subscription fees, marketing expenses, utilities, etc. Distribute these total costs across the number of products you produce.

For example: If your monthly overhead is $200 and you produce 50 items per month, the overhead cost per item is $4.

Total Cost = Material Cost + Labor Cost + Overhead Cost

Step 2: Set Your Profit & Retail Price

Once you know your total cost, you can set your profit margin. A common pricing strategy is the "wholesale" and "retail" model, even if you only sell retail.

Wholesale Price

The wholesale price should cover your total costs and include a portion of profit. A simple rule of thumb is to multiply your total cost by 2.

Wholesale Price = Total Cost x 2

This means you'd still make a healthy profit if you were to sell your products to other retailers.

Retail Price

The retail price is the final price the customer pays. Typically, the retail price is 2 to 2.5 times the wholesale price.

Retail Price = Wholesale Price x 2 (or 2.5)

This not only ensures a sufficient profit margin but also gives you room for promotions or to handle future cost increases.

For example: If your total cost is $20, your wholesale price is $40 ($20 x 2), and your retail price is $80 ($40 x 2).

Step 3: Don't Forget Etsy Fees! Verify Your Profit with a Calculator

Congratulations, you now have a reasonable retail price for your product. However, this is the price your customer pays, not the money you ultimately take home. Etsy will deduct various fees from this amount—listing fees, transaction fees, payment processing fees, and possibly even Offsite Ad fees.

**So, how do you ensure that after all Etsy fees are deducted, your calculated retail price still yields the profit you expect?**

Manually checking and calculating these complex fees is not only time-consuming but also extremely prone to error. Your pricing needs to be robust enough to leave you satisfied after all costs and fees are deducted.

Price with Precision, in One Click!

Stop struggling with tedious Etsy fee calculations! Enter the "retail price" you just calculated and your cost data into our **Free Etsy Fee & Profit Calculator**.

It will instantly show you your actual take-home profit and profit margin after all Etsy fees are deducted. You can easily adjust the sale price until you hit your ideal profit target!

Use the Free Etsy Profit Calculator Now

Sources

The fee structures mentioned in this article are based on data available in early 2026. Pricing strategies should always account for the latest platform fees. For the most current and accurate fee information, please always refer to the official Etsy documentation.

[1] Official reference

Etsy Fees and Taxes

Listing and transaction fee definitions.

[2] Official reference

Etsy Payments processing fees

Country-specific processing rates and fixed fees.

[3] Official reference

Etsy Fees & Payments Policy

Policy summary and additional fee notes.

FAQ

What is the simplest Etsy pricing formula?

Price should cover total cost, target profit, and all Etsy fees. A quick rule is: required price = (total cost + fixed fees) / (1 - total percent fees).

Do Etsy fees apply to shipping?

Etsy states transaction fees apply to the total order amount, which can include shipping and gift wrap if charged.

Should I include my time in costs?

Yes. Add labor, tools, and overhead into COGS so your price reflects real profit, not just material cost.

How do I verify the final price?

Use the Etsy fee calculator with your exact fees and costs to confirm profit and margin.

Conclusion

Effective pricing is the cornerstone of a successful Etsy business. By understanding and calculating your total costs, setting a reasonable profit target, and using our calculator to verify that your final price covers all platform fees, you can escape the cycle of low profits.

Start using a scientific pricing strategy today to maximize your Etsy business's profitability!

Use these tools to validate your Etsy pricing and margins.

For a cross-platform snapshot, see the fee comparison page.

Next read

Compare Etsy pricing outcomes with Shopify and Amazon fee models.

Platform fee comparison guide →