Etsy Fee Calculator UK

An Etsy sale in Britain carries up to five separate charges, and only one of them is the famous 6.5%. Etsy's Help Centre, checked on 11 November 2026, lists a US$0.20 listing fee billed in your currency, a 6.5% transaction fee on the item price plus postage and gift wrap, Etsy Payments processing of 4% + £0.20 for UK shops, a 0.48% regulatory operating fee for UK sellers, and the optional Offsite Ads fee when an ad brings the order. On top, Etsy charges 20% VAT on its seller fees to UK shops that have not given it a VAT number. Put together, a modest £25 sale with £3.50 postage costs about £4.18, nearly 15% of the item price. This calculator shows each of those lines in pounds, applies the VAT rule correctly, and tells you what is left after your materials and postage.

The five Etsy charges on a UK order

The listing fee is set in dollars and converted, so the pound figure moves with the exchange rate. We use the European Central Bank's reference rates for 10 November 2026 and show the converted amount in the line label. If your listing renews automatically after a multi-quantity sale, you pay the listing fee again for the next unit, so keep the switch on unless you are sure the fee was paid elsewhere.

VAT on Etsy fees: who pays it

Etsy's article on VAT on seller fees says it charges VAT on seller and processing fees to shops in the UK, the EU and Australia. A UK shop that adds a valid VAT number in its settings stops seeing VAT on its Etsy bill, because a VAT-registered business accounts for it through the reverse charge or reclaims it. Most hobby and small shops are below the VAT threshold and have no number, so they pay the extra 20%. The calculator adds that line by default and drops it when you tick 'VAT number on file'. When you do tick it, we also treat you as VAT-registered for your own sales and set aside the VAT inside your price, because a registered seller has to pay that over to HMRC.

transaction = 6.5% × (item + postage + gift wrap)
processing = 4% × order total + £0.20
regulatory = 0.48% × (item + postage + gift wrap)
VAT on fees = 20% × (listing + transaction + processing + regulatory + offsite ads), if no VAT number
profit = order total − all fees − (output VAT if registered) − materials − your postage

Worked examples

The £12 example shows why small items hurt: the fixed 20p processing charge and the listing fee are a bigger share of a small basket. On a £12 sale Etsy and the VAT on its fees take a sixth of the price. Bundling items or setting a minimum order value changes that ratio far more than shaving a percentage point somewhere else.

Offsite Ads in pounds

Etsy caps the Offsite Ads fee at US$100 per order. At the 10 November 2026 reference rates that is about £74.50, which only matters on orders above roughly £497 at the 15% rate. Shops that made US$10,000 or more in the past 365 days cannot opt out and pay 12%; smaller shops can opt out. If you are not sure whether an order came from an ad, Etsy marks it on the order receipt and in your payment account.

Things we leave out on purpose

• Currency conversion: Etsy charges 2.5% when your listing currency differs from your payment account currency. Price in pounds and it does not apply.
• Etsy Plus, shipping labels bought on Etsy and Etsy Ads (onsite) are separate bills you choose.
• Deposit schedules and reserves affect when you are paid, not how much.

If you also sell on eBay UK, note that a private eBay seller pays nothing on a UK sale while an Etsy shop always pays the five lines above. The trade-off is audience: Etsy buyers search for handmade, vintage and craft supplies, and for many makers that buyer intent is worth the fees. The calculator is here so the choice is made with numbers.

How to use this calculator

1. Enter the item price and your materials cost. Open More options for postage, gift wrap and Offsite Ads.
2. Say whether Etsy has your VAT number. Without one, 20% VAT is added to Etsy's fees. With one, we also deduct output VAT from your price.
3. Leave the listing fee on for normal sales. Turn it off only if you already counted the 20 US cents elsewhere.
4. Check the sentence under the result. It tells you what you keep from the price and what share Etsy takes.

Frequently asked questions

Sources and updates

• Etsy Help — What are the fees and taxes for selling on Etsy?, checked 2026-11-11.
• Etsy Help — What are payment processing fees for selling on Etsy?, checked 2026-11-11.
• Etsy Help — Regulatory operating fee, checked 2026-11-11.
• Etsy Help — VAT on seller fees, checked 2026-11-11.