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What price to charge on Etsy for a target profit margin (UK)
Last checked 13 Oct 2026. Items marked date-sensitive can change; follow the source links before relying on them.
How to set an Etsy UK list price from the margin or profit you want to keep, why fees that scale with price break simple markups, a worked 30% example, and a free calculator that does the solving.
Want the answer for your numbers? The free Etsy UK pricing calculator starts from your costs and target margin (or £ profit) and works backwards through every UK Etsy fee to the item price to list.
Why you can't just "add fees on top"
Etsy's percentage fees are charged on the price you're still choosing. Raise the price and transaction (6.5%), processing (4%) and the UK Regulatory Operating Fee (0.48%) all rise with it. So the right question is not "price = costs + fees + profit" with fees fixed — it is "what price makes (order total − Etsy fees − my costs) hit my target?"
For the fee list itself, see Etsy UK fees explained. For margin as a definition, see how to calculate your Etsy profit margin.
The target to set
Profit margin = (order total − Etsy fees − your costs) ÷ order total
- Order total = item price + postage you charge the buyer (minus discounts). For a UK digital buyer, leave out the VAT Etsy adds at checkout; that VAT isn't yours.
- Your costs = materials, packaging, postage you actually pay, and a per-item share of ads or subscriptions if you want them covered.
- Target = a margin % (profit ÷ order total) or a fixed £ profit per order. This page uses margin % unless it says otherwise.
There is no official "good" Etsy margin. Pick a target that still leaves room for your time, refunds and tax after the formula.
UK fees that scale with the price date-sensitive
For a UK shop on Etsy Payments in GBP, not VAT-registered, one listing fee, no Offsite Ads (rates from Etsy Help, same basis as this site's calculators):
- 6.5% transaction + 4% processing + 0.48% Regulatory Operating Fee = 10.98% of the order
- Fixed: ≈ £0.15 listing + £0.20 processing = £0.35
- 20% VAT on those fees → roughly 13.176% of the order + £0.42
That percentage floor is why you can never keep more than about 86.8% of an order as margin before your own costs. With Offsite Ads at 15% (plus VAT on that fee) the ceiling drops to about 68.8%. Ask the calculator for more than that and it should refuse rather than invent a price.
Worked example: £6 to make, £3.20 postage, 30% target date-sensitive
Defaults from the pricing calculator (checked against the same fee model on 13 Oct 2026): cost to make £6.00, postage charged £3.20, postage cost £3.20, include listing fee, no VAT ID, no Offsite Ads.
| Line | Amount |
|---|---|
| Item price to list | £13.73 |
| Order total (item + postage) | £16.93 |
| Total Etsy fees (incl. VAT on fees) | £2.65 |
| Your costs (£6.00 + £3.20 postage) | £9.20 |
| Profit | £5.08 |
| Margin | 30% of £16.93 |
Same costs, but price so an Offsite Ads sale (15%) still hits 30%: list at about £21.58. You are paying for the ad fee on attributed orders; shops under the $10,000 USD / 365-day threshold can still opt out (Etsy Help: Offsite Ads).
A simple ladder (same costs, different targets)
Use a ladder to see what each margin costs the buyer before you lock a price. In the calculator, the "Price ladder" table does this automatically. Rough pattern with the example costs above: higher margin → much higher list price once Offsite Ads or high percentage fees are in play, because percentages eat part of every extra pound.
Step-by-step without a calculator
- Write down cost to make, postage you will charge, and postage you will pay.
- Choose target margin (e.g. 30%) or target £ profit.
- Guess an item price, compute order total, compute Etsy fees (or use the fee calculator), then profit and margin.
- If margin is low, raise the price and repeat. Binary search is what the pricing tool does for you.
- Round up to the next penny (or your usual price ending) and re-check.
Check the price against reality
- After you sell: your monthly statement shows what Etsy actually took. The statement CSV summary totals fees by type so you can see if live fees match the model.
- Digital downloads: fixed fees hurt low prices harder. See digital download fees and tick "Digital item bought by a UK buyer" in the pricing calculator.
- VAT-registered: turning off VAT on Etsy's fees is only one part; you may also owe VAT on your own sales. See the VAT guide. Not tax advice.
Sources
- Etsy Help: What are the fees and taxes for selling on Etsy?
- Etsy Help: Payment processing fees (UK: 4% + £0.20)
- Etsy Help: Regulatory Operating Fee (UK: 0.48%)
- Etsy Help: How Etsy's Offsite Ads work
- Etsy Help: How VAT is collected on seller fees
- Etsy Help: How VAT works on digital items
- Etsy: Sell on Etsy (UK fee summary)
- GOV.UK: VAT rates
- Etsy Help: How Etsy's Offsite Ads work
Related
- Free Etsy UK fee & profit calculator (runs in your browser)
- Etsy UK pricing calculator: what to charge for a target margin
- Etsy monthly statement CSV summary: your real fees by month
- Etsy UK fees explained
- Etsy VAT for UK sellers: fees and digital downloads
- How to calculate your Etsy profit margin (UK)
- Etsy fees on digital downloads (UK)
- Etsy Offsite Ads fees for UK sellers
- Does Etsy charge a monthly fee in the UK?
- How to read an Etsy monthly statement CSV (UK)
FAQ
How do I work out what to charge on Etsy UK?
Add up what one order costs you, choose a margin or £ profit target, then find the item price where order total − Etsy fees − costs hits that target. Because percentage fees rise with price, solve for the price rather than adding a fixed fee on top.
What profit margin should I aim for on Etsy?
Etsy does not publish a benchmark. Choose a target that still covers your time, ads, refunds and tax after the basic formula. Use a price ladder to see what each margin means in pounds.
Why is there a maximum margin on Etsy?
Percentage fees alone take about 13.2% of the order (with VAT on fees) before your costs, so you cannot keep more than about 86.8% as margin. With Offsite Ads at 15% the ceiling is about 68.8%.
Should I build Offsite Ads into my price?
If Offsite Ads are compulsory for your shop (once you have made $10,000 USD or more in any 365 days), some sales will carry the fee, so pricing as if every sale is ad-free understates cost. Under the threshold you can opt out. Price both ways and decide.
Is postage included in Etsy fees?
Yes. Transaction, processing and regulatory fees apply to postage you charge as well as the item price. Enter postage charged and postage cost separately.