Etsy fee and profit calculator (UK)
Enter your price, postage and costs. You'll see each Etsy fee, your profit per sale and the price to charge for the profit you want.
Etsy UK fees used
| Fee | Rate | Charged on |
|---|---|---|
| Listing fee | $0.20 (about 15p to 16p) | Each listing, and again each time one of a multi-quantity listing sells or renews |
| Transaction fee | 6.5% | Item price plus postage, gift wrap and personalisation |
| Payment processing (UK bank) | 4% + £0.20 | The order total |
| Regulatory operating fee (UK) | 0.48% | Item price plus postage and gift wrap |
| Offsite Ads (only if a sale comes from one) | 15%, or 12% if your shop made $10,000+ in the last 365 days | The order total, capped at $100 |
Etsy adds VAT to its seller fees for UK sellers who haven't given it a VAT number. If you're not VAT registered, leave the VAT option on "Yes".
Worked examples
1. A £20 candle with £3.50 postage (cost £5, postage costs you £3.50, VAT on fees, no ad). The buyer pays £23.50. Fees: listing £0.19, transaction £1.83, processing £1.37, regulatory £0.14, total £3.53. Profit: £23.50 − £3.53 − £5 − £3.50 = £11.47.
2. The same candle from an Offsite Ad at 15%. The ad fee is £23.50 × 15% × 1.2 = £4.23, so total fees are £7.76 and profit drops to £7.24.
3. A £45 print with free postage (cost £12, postage costs you £4, VAT registered so no VAT on fees, listing fee £0.16). Fees: £0.16 + £2.93 + £2.00 + £0.22 = £5.31, so profit is £45 − £5.31 − £12 − £4 = £23.69.
Do I pay tax on Etsy sales?
If you make things to sell, that's usually trading. Your first £1,000 of trading income in a tax year is covered by the trading allowance. Over that, you'll normally need to register for Self Assessment. Etsy's fees, your materials and postage are business expenses. Use the side hustle tax calculator to see a rough figure. Etsy also reports sellers with 30 or more sales, or about £1,700 or more, in a calendar year to HMRC, see platform reporting explained.
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Free: The UK Contractor's Cheat Sheet 2026/27
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Frequently asked questions
How much does Etsy take from a sale in the UK?
For a UK shop paid in pounds: 6.5% transaction fee, 4% + £0.20 payment processing and a 0.48% regulatory operating fee, plus the $0.20 listing fee. Etsy adds VAT to these if you're not VAT registered. On a £23.50 order that's about £3.53.
Does Etsy charge fees on postage?
Yes. The transaction, processing and regulatory fees are charged on the postage you charge as well as the item price.
Are Offsite Ads optional?
For most shops, yes. Shops that made $10,000 or more in the last 365 days must take part, at 12%. You only pay when a sale comes from one of the ads.
Do I have to pay tax on Etsy sales?
If you make or buy things to sell, it's usually trading. Up to £1,000 of income a year is covered by the trading allowance. Above that you'll normally need to register for Self Assessment. This is an estimate, not tax advice.
Sources
- Fees & Payments Policy – Etsy
- How to sell on Etsy UK (fees) – Etsy
- What is a Regulatory Operating Fee? – Etsy Help
- Selling goods or services on a digital platform – GOV.UK
This guide is general information, not legal, tax or financial advice. Rules and rates change, so check the linked GOV.UK pages for the current position.