Price your handmade products to succeed on Etsy, with every cost accounted for.
The Etsy-Specific Pricing Formula is built to help handmade sellers on Etsy (or similar marketplaces) calculate a retail price that includes:
This approach ensures you're not losing money on platform sales, even after Etsy takes its cut.
Etsy's fees may look small at first, but they add up, especially when combined with free shipping, paid ads, and promotional discounts. This formula safeguards your profits.
Let's say you sell art prints and ship a physical version. This example demonstrates how the Etsy-Specific Formula ensures profitable pricing:
Materials Cost: $1.00
Labor: $6.00
Etsy Fees: $3.00
Packaging Supplies: $1.00
Calculation: (($1 + $6) × 2) + 3 + 1 = $18.00 Etsy Price
That $18 includes your time, costs, fees, and a reasonable profit, so you know you're charging enough to stay sustainable.
Pro Tip: Don't forget that Etsy charges a percentage for transaction fees and processing fees in many regions. Add in listing fees, ads, and discounts, and the expenses can add up. This formula keeps you ahead of those costs.
Use the calculator below to plug in your numbers and instantly see your suggested Etsy retail price, no spreadsheet needed.
((Materials + Labor) × Markup) + Fees + Packaging = Etsy Price
Consider using this formula if you:
If you're serious about Etsy as a business, not just a hobby, this formula will help you stay profitable.
This free printable worksheet helps you apply the Etsy-Specific Pricing Formula step by step, so you can confidently price your handmade products with platform fees, labor, and packaging all factored in.
Use this worksheet to:
Whether you're just starting or scaling up, this tool helps you price with clarity, not guesswork.
Download the Etsy Pricing Worksheet (PDF)
Return to the Full Craft Pricing Formula Guide: Compare all six pricing strategies to find the one that fits your product, platform, and business goals.
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