Worked seller example · USD
Handmade Etsy profit: include the cost of your time
A handmade item needs to cover both supplies and the time you spend making it. Here is how a $40 item can pay for your labor and still leave a profit.
The example order
One handmade item normally sells for $40, plus $5 shipping. Materials cost $10, making it takes half an hour at $20/hour, packaging costs $1, and postage costs $5. This order has no Offsite Ads fee.
- Item revenue
- $40.00
- Shipping collected
- $5.00
- Materials
- $10.00
- Labor: 30 minutes at $20/hour
- $10.00
- Packaging
- $1.00
- Postage
- $5.00
- Estimated Etsy fees
- $4.73
- Net profit
- $14.27
Estimated fees include a $0.20 listing fee, 6.5% transaction fee, US processing at 3% + $0.25. No sales tax, currency conversion, or additional costs are entered. Totals use unrounded calculations; displayed amounts may differ by a cent. Fee details and exclusions appear below.
Labor allowance and profit are different
The $10 labor allowance pays for production time. The remaining $14.27 is profit after the entered costs. If you omit labor, the result looks $10 higher even though you still spend the same time making the product.
Add other work such as personalization or packing to your time estimate. Monthly overhead, income taxes, returns, and any unentered costs still need to be covered; this is an order-planning estimate.
The calculator opens with these inputs filled in. Change them to match your product.
Fee assumptions used
These are editable planning assumptions from the local fee table, last reviewed 2026-08-22. Payment processing assumptions can vary by country, currency, payment method, and seller setup, so they are estimates rather than guaranteed exact fees.
Etsy publishes fixed fees such as listing fees in USD and converts them to your payment account currency at the market rate when the fee is reflected in your payment account. This calculator uses the exchange rate shown in the calculator, so your actual Etsy amount may vary. VAT on seller fees, deposit fees, Etsy Ads spend, Pattern, subscriptions, reserves, refunds, and return costs are not included unless explicitly shown.
| Country | Listing | Default USD rate | Transaction | Payment processing | Regulatory | Offsite ads |
|---|---|---|---|---|---|---|
| United States | USD 0.20 | 1 | 6.5% | 3.0% + USD 0.25 | 0.00% | 0%, 12%, 15% |
| United Kingdom | USD 0.20 | 0.79 | 6.5% | 4.0% + GBP 0.20 | 0.48% | 0%, 12%, 15% |
| Canada | USD 0.20 | 1.37 | 6.5% | Domestic or US order: 3.0% + CAD 0.25; International order: 4.0% + CAD 0.25 | 0.50% | 0%, 12%, 15% |
| Australia | USD 0.20 | 1.52 | 6.5% | Domestic order: 3.0% + AUD 0.25; International order: 4.0% + AUD 0.25 | 0.00% | 0%, 12%, 15% |
| Euro area estimate | USD 0.20 | 0.93 | 6.5% | 4.0% + EUR 0.30 | Verify by country | 0%, 12%, 15% |