How much you should be charging for your Etsy products to make the profit margin you need?
To make a profit and grow your Etsy business, you'll need to make sure that you are charging enough to cover your costs of making the product, plus an additional amount to cover Etsy fees, postage and your time. Any amount left over after these costs have been removed is your profit.
Markup is essentially the amount added to your production cost price to arrive at a price. It is a commonly used technique to add a consistent profit margin to your product prices. Your ideal markup will depend on the types of products you sell, however as a general rule you will want to aim for no lower than a 50% markup for Etsy. Learn more about recommended markups for your craft products here ».
First, make a list of every material that you have used up to produce the item - let's call this your "recipe". For each item in your recipe, calculate your unit price for each: this can be calculated using a rolling average calculation on your purchase history for the material and converting to a suitable unit of measurement (e.g pounds to ounces). Don't forget to include hidden costs like shipping and taxes paid. Finally, calculate how much you used up and multiply this by your manufacturing unit price. Don't want to do all these calculations yourself? Sign up for a free 14 day trial of Craftybase and we'll calculate these for you!
One of the biggest pricing mistakes Etsy sellers make is that they completely ignore their own labour costs. Being self-employed, it's easy to undervalue or completely ignore the time you put in to your business. Learn more about how to calculate your handmade labor costs »
Etsy charges $0.20 for each listing - think of this as an "advertising fee" to show your products to the world. When you sell something on Etsy, they will then charge you 6.5% of the amount collected - it is important to note that this includes shipping or gift wrapping charged to the customer. The listing fee is renewed each time your product sells, so if you sell 3 of your products you'll pay $0.60 (3 x $0.20). If the sale was processed through Etsy's Direct Checkout, you'll then also pay 3% of this amount, and an additional $0.25 fee. Our Etsy Fee Calculator will calculate all of the above fees and show you the profit margins you are making.
This 2025 Etsy Pricing Calculator calculates how much you should charge to sell your product taking into consideration your location, pricing markup, labor cost and material cost. It then shows your profit margin taking into consideration Etsy Listing Fees, Etsy Seller Fees and Etsy Payments Fees.
This Etsy Pricing calculator is a completely free tool provided with ❤ by Craftybase - Inventory & Bookkeeping for Makers. There is no cost to use this tool.
Pricing strategy is often one of the hardest parts of running a craft business - once you have made your product, how do you know what to charge for it? Our eBook introduces online craft sellers to the theories around pricing, in an easy to understand way: giving you the knowledge and confidence to begin planning your strategy.
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