Etsy Profit Calculator
Etsy UK profit calculator in GBP after Etsy fees, VAT on fees, materials, labour and Royal Mail postage.
Etsy United Kingdom fee table last updated · reference source
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Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.
Fee figures are stored in our static fee table and change over time. Confirm current rates against the platform's official fee page before relying on them.
What this tool does
Runs the full UK Etsy fee stack — including the regulatory operating fee and 20% VAT on Etsy's fees — and then subtracts your materials, labour and the postage you actually pay, so you see real profit per order in pounds.
How to use the Etsy Profit Calculator
- Leave the shop country set to United Kingdom; amounts are in GBP.
- Enter the item price, quantity and the postage you charged.
- Add any VAT included in the order, since processing applies to it.
- Enter the listing fee exactly as shown on your Etsy statement.
- Enter your materials, labour and actual postage costs.
- Read total fees, the VAT on Etsy fees line and what you receive.
Formula
Fees = L × Q + 0.065 × (P × Q + S) + 0.04 × (P × Q + S + T) + 0.20 + 0.0032 × (P × Q + S) + A × (P × Q + S) + 0.2 × (non-processing fees)
- L
- Listing fee from your statement
- P, Q, S
- Price, quantity, shipping charged
- EtsyFees
- Listing + transaction + processing + Offsite Ads (see Etsy Fee Calculator)
- M, L
- Material and labor cost per item
- Post
- Actual postage and packaging cost
- T
- VAT included in the order
Fixed amounts are in GBP. Etsy caps Offsite Ads fees per order; this tool does not apply the cap.
Worked example
An £18 candle with £3.20 postage charged, £4.50 materials, £3 labour and £2.85 actual Royal Mail postage.
Inputs
- Item price£18
- Quantity sold1
- Postage charged to buyer£3.2
- VAT collected on the order£0
- Sale came from Offsite Ads?No
- Material cost per item£4.5
- Labor cost per item£3
- Actual postage & packaging£2.85
- Shop country (Etsy Payments)United Kingdom
- Listing fee per item£0.16
Result
- Net profit£7.87
- Total fees£2.98
- Profit margin37.15%
- Fees as % of revenue14.03%
Etsy United Kingdom fee table
| Fee | Rate | Applied to |
|---|---|---|
| Listing | Billed from US£0.20 | Each item listed / renewed |
| Transaction | 6.5% | Item price + postage |
| Payment processing | 4% + 0.20 GBP | Order total incl. tax |
| Regulatory operating fee | 0.32% | Order total |
| VAT on Etsy fees (20%) | 20% | Etsy seller fees |
| Offsite Ads | 15% / 12% | Attributed orders |
Results explained
- Net profit
- What you keep after Etsy fees and every cost you entered.
- Total fees
- All Etsy deductions on the order.
- Profit margin
- Net profit divided by order revenue (price × qty + shipping).
- Fees as % of revenue
- How much of each sale dollar Etsy keeps.
Frequently asked questions
Many handmade sellers target 30–50% after all fees and costs, but it depends on your time and pricing. Use the margin output to test prices.
Yes. Paying yourself an hourly rate shows whether a product is genuinely profitable rather than just covering materials.
This is profit before income tax and National Insurance. The trading allowance covers the first £1,000 of gross trading income.
Yes, as a separate fee line. If you are VAT-registered and reclaim it, subtract that line from total fees.
Etsy's 6.5% and processing fees apply to postage too, so undercharging postage reduces profit twice.