Pop in the numbers for a single Etsy sale — not your yearly totals — and we'll show every Etsy fee, your net profit, margin and a rough UK tax set-aside estimate.
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What this one item cost you. If you buy things to resell, it's the price you paid for the item. If you make things, it's the materials that went into it — fabric, clay, yarn, components, and so on. Don't include your own time: for both this calculation and HMRC's, your labour doesn't count as a cost.
Anything else this one sale cost you that isn't covered above — packaging and wrapping, labels, a fair share of any Etsy Ads spend, or extras like gift boxes. Because this calculator works on a single sale, enter this sale's share only, not your yearly totals.
Etsy advertises listings on Google, Facebook, Instagram and similar sites. If a buyer clicks one of those ads and buys from your shop within 30 days, Etsy charges an Offsite Ads fee on that order: 15% if your shop has made under $10,000 in the past 365 days (you can opt out at this level), or a discounted 12% once your shop passes $10,000 (participation then becomes compulsory). Etsy caps the fee at $100 per order. Tick the box only if this particular sale came from an offsite ad.
Fees last verified: 2026-09-21. Always confirm current fees on the marketplace's own help pages.
Here's exactly what a £25 item with £4 shipping costs you in Etsy fees, using the same fee engine as the calculator above:
| Fee | Amount |
|---|---|
| Listing fee | £0.16 |
| Transaction fee (6.5%) | £1.62 |
| Processing fee (4% + £0.20) | £1.36 |
| Regulatory operating fee (0.48%) | £0.14 |
| Total fees | £3.28 |
If this profit repeated across roughly 100 sales a year, the rough UK tax set-aside would be about £0.00 (effective rate 0.0%). This is an estimate, not a tax bill.
Every Etsy UK sale carries four possible fees: a fixed listing fee, a transaction fee on the item price, a Payments processing fee on the item price plus shipping, and a regulatory operating fee on the order total. A fifth, Offsite Ads, only applies when the sale came from one of Etsy's own adverts.
| Fee | Rate | Applies to |
|---|---|---|
| Listing fee | £0.16 | Fixed, per listing (auto-renews every 4 months) |
| Transaction fee | 6.5% | Item price only (excludes shipping) |
| Payments processing | 4% + £0.20 | Item price + shipping charged |
| Regulatory operating fee | 0.48% | Item price + shipping charged |
| Offsite Ads (if the sale came from one) | 12–15% | Item price + shipping; capped at $100/order |
Rates last verified 2026-09-21 against Etsy's official fee pages.
Whether you owe Income Tax on Etsy profits depends on your total selling income across all platforms, not just Etsy. HMRC's £1,000 trading allowance means that if your gross selling income for the tax year is £1,000 or less, you generally do not need to report it or pay tax on it.
Above £1,000 gross, you will likely need to register for Self Assessment and pay Income Tax on your profit (revenue minus allowable costs such as fees, materials and postage). Etsy may also report your sales data to HMRC if you pass the platform reporting thresholds — roughly £1,700 of sales or 30 transactions in a calendar year — though being reported doesn't automatically mean tax is due.
Every Etsy UK sale carries a £0.16 listing fee, a 6.5% transaction fee on the item price, and a Payments processing fee of 4% + £0.20 on the item price plus shipping. A 0.48% regulatory operating fee also applies to the order total. If the sale came from an Offsite Ad, add 12–15% on top. This calculator adds up every fee for you.
Offsite Ads is Etsy's advertising on Google, Facebook, Instagram and similar sites. If a buyer clicks one of those ads and buys within 30 days, Etsy charges a fee on that order: 15% if your shop has made under $10,000 in the past 365 days (you can opt out at this level), or a discounted 12% once your shop passes $10,000 (participation then becomes compulsory). The fee is capped at $100 per order.
UK sellers pay a 0.48% regulatory operating fee on the order total (item price plus shipping charged), introduced to cover Etsy's cost of complying with digital services regulation. It applies on top of the listing, transaction and processing fees and is charged on every sale.
UK sellers using Etsy Payments pay 4% plus £0.20 per transaction, calculated on the total of the item price and any shipping you charge the buyer. This is separate from the 6.5% transaction fee, which applies to the item price only.
Only if your Etsy selling counts as trading and your gross income across all platforms exceeds the £1,000 trading allowance. Below £1,000 gross, you generally don't need to register for Self Assessment or tell HMRC. Above it, you likely need to declare your profit. Etsy may also report your sales data to HMRC if you pass the platform reporting thresholds (roughly £1,700 or 30 sales a year).