Etsy shipping calculator — because "free shipping" is never free
Etsy's fees do not stop at the item price. The transaction fee, the payment processing fee and Offsite Ads are all charged on your shipping too. Type your price and postage into the calculator and watch how much of the postage Etsy keeps.
YOUR LISTING
YOUR PAYOUT
WHAT YOU KEEP AT DIFFERENT PRICE POINTS
| Sale price | Etsy fees | You keep | Effective rate |
|---|
Why Etsy charges fees on your shipping
This is the detail most sellers miss. Etsy's fee bases are:
| Fee | Charged on |
|---|---|
| Transaction fee (6.5%) | Item + shipping + gift wrap (not tax) |
| Payment processing (3–4% + fixed) | Item + shipping + gift wrap + tax |
| Offsite Ads (15% or 12%) | The whole order — item, shipping and gift wrap |
| Regulatory operating fee (some countries) | Item + shipping + gift wrap |
The free-shipping trap, in numbers
Two US sellers, identical $38 item, one charges $7 shipping and one folds it into a $45 "free shipping" price. The buyer pays the same $45 either way:
| $38 + $7 ship | $45 free ship | |
|---|---|---|
| Listing fee | $0.20 | $0.20 |
| Transaction fee 6.5% | $2.93 | $2.93 |
| Payment processing 3% + $0.25 | $1.60 | $1.60 |
| Total Etsy fees | $4.73 | $4.73 |
| You keep | $40.27 | $40.27 |
The fees are identical because Etsy charges them on the same $45 total. Free shipping does not save you a cent in fees — it just moves the postage from the shipping line to the price line. What changes is buyer psychology and Etsy search ranking, which both favour free shipping. So the right move is usually to offer free shipping and price it in — not to imagine the postage escapes Etsy's fees.
How much of your postage does Etsy keep?
Same US seller, $38 item, varying shipping, no ads. The postage column is the shipping you charge; the "fees on postage" column is the Etsy slice of it:
| Shipping charged | Etsy fees | You keep | Fees on the postage alone |
|---|---|---|---|
| $0 (free) | $3.98 | $34.02 | $0.00 |
| $5 | $4.49 | $38.51 | $0.51 |
| $7 | $4.73 | $40.27 | $0.75 |
| $10 | $5.10 | $42.90 | $1.12 |
| $15 | $5.73 | $47.27 | $1.75 |
On a $7 shipment Etsy takes about $0.75 of fees on the postage — roughly 11% of the shipping, the same effective rate as the item. Outside the US the rate is higher: a UK seller pays 10.7% on the item and the shipping alike, and an Australian seller on an overseas order pays 12.5%. Put your own numbers in the calculator above to see the exact figure for your country.
Offsite Ads makes shipping more expensive, not less
If the buyer arrived through an Etsy ad, the 15% Offsite Ads fee lands on the whole order including shipping. The same $38 + $7 order that cost $4.73 organic now costs:
| Organic | Offsite Ads 15% | |
|---|---|---|
| Total Etsy fees | $4.73 | $11.48 |
| You keep | $40.27 | $33.52 |
| Effective rate | 10.5% | 25.5% |
The $7 shipping is now inside the base for a 15% fee, adding about $1.05 of Offsite Ads on the postage alone. Folding the shipping into the price does not help — the percentage just applies to a larger number. The only way shipping avoids Offsite Ads is if the order is not attributed, which is not something you control after the click.
Shipping plus currency conversion
If your listing currency differs from your payout currency, Etsy adds a 2.5% currency conversion fee on the converted amount — and "converted amount" includes the shipping. A Canadian shop listing in USD but paid in CAD pays 2.5% of the whole order, shipping included, every time. That is another reason the shipping line is not neutral.
Should you charge shipping, or build it in?
Etsy fees are identical either way, so the decision is about the buyer, not Etsy:
- Free shipping wins search ranking and conversion. Etsy's search favours free-shipping listings, and buyers convert better on a round "free shipping" price.
- Charging shipping shows the true cost. Some buyers prefer to see a lower item price and pay postage separately; international buyers especially expect it.
- Either way, price the postage in. The mistake is charging $7 shipping but pricing the item as if shipping were free — that $7 still carries ~11% of fees you have to cover.
Type your real price and postage into the calculator above, switch on Offsite Ads if that is how the order arrived, and you will see the postage's full cost — fees and all. The pricing guide shows how to set a price that absorbs it and still hits your margin.
Quick answers
Does Etsy charge the transaction fee on shipping?
Yes — 6.5% on item plus shipping plus gift wrap. Only sales tax sits outside that base.
If I offer free shipping, do I still pay fees on it?
You pay fees on the postage you swallow, because Etsy charges on the order total regardless of which line the money came from. Free shipping moves the cost; it does not remove it.
Is the Offsite Ads fee charged on shipping?
Yes, on the whole order including shipping and gift wrap, capped at US$100 per order. See the Offsite Ads page for the full rules.
How do I check my own shipping maths?
Use the calculator at the top of this page: enter the item price in the first field and your postage in the Shipping you charge field. It applies every fee to both, for your country.
Rates last verified October 2026 against Etsy's published Fees & Payments Policy. Etsy's fee bases can change; always confirm against the policy before pricing. This tool provides estimates only and is not affiliated with, endorsed by, or connected to Etsy, Inc.