How to calculate Etsy UK net profit
This calculator uses UK Etsy Payments rates and the GBP value of fees that Etsy bills in US dollars. Your earnings are not your gross order value: transaction, processing, regulatory, listing and applicable advertising fees reduce the amount left to cover inventory, postage and other business costs.
UK Etsy Payments and the regulatory charge
A UK bank account using Etsy Payments is charged , separately from Etsy’s transaction fee. The UK Regulatory Operating Fee is on item, postage and gift-wrap charges. Payment processing can also include separately charged buyer VAT. These are distinct fees; do not combine or assume a US processing rate.
GBP listing fees are not fixed
Etsy lists new listings and additional sold quantities at US$0.20 each. The GBP amount depends on the exchange rate when Etsy charges the fee. Enter the actual GBP amount or the USD-to-GBP rate rather than assuming £0.20 or a permanent £0.15/£0.16 value. You can include separately incurred renewals in the detailed quantity model.
How Offsite Ads fees work in pounds
Only an attributed Offsite Ads sale incurs an Offsite Ads fee: typically 15%, or 12% when the lifetime rolling sales threshold has been met. The cap is US$100 per order and must be converted to GBP at an applicable exchange rate, or entered as the actual GBP cap. Etsy Ads spend is separate; check last-click attribution before counting both.
Example: £100 UK order without optional fees
For a £100 sale with £40 goods cost, £0 postage, £0.16 actual listing fee, no Offsite Ads and no modelled VAT cost: transaction fee £6.50, UK processing £4.20 and Regulatory Operating Fee £0.48 leave £48.66 estimated profit before further expenses.
Etsy VAT for UK sellers: two separate questions
VAT included in your product selling price
Depending on VAT registration and where the item is shipped, the seller or Etsy may need to account for VAT on the sale. For seller-remitted VAT already included in the displayed item price, enter the actual tax liability; this calculator removes it from economic revenue. If Etsy collects and remits VAT separately, enter that buyer VAT under the Etsy-collected mode; it is excluded from revenue, but may affect processing fees.
VAT on Etsy seller fees
VAT on transaction, payment processing, regulatory, advertising or other Etsy seller services is a different charge from VAT on goods. Etsy’s treatment can depend on seller location, VAT ID submission and account setup. NetPerSale does not automatically impose a UK 20% VAT rate or presume that submitted VAT IDs always remove fees.
Where you have a VAT invoice, enter the actual VAT Etsy charged and the amount recoverable as input VAT (if any). Net VAT cost is the difference, avoiding double counting. VAT registered and unregistered sellers should check their circumstances; VAT recovery is not assumed.
When is 2.5% currency conversion charged?
Etsy's 2.5% sale currency conversion applies when the listing currency differs from the Etsy Payment account currency. It does not mean that every UK seller pays an additional currency conversion fee, nor is it the same as converting USD listing charges into GBP.
Break-even and target-margin prices
Solvers rerun the full UK fee engine at each candidate price and account for the fixed 20p processing charge, percentage fees and the Offsite Ads cap. They are unavailable if absolute VAT amounts have been entered whose relationship to a future item price is unknown. Use your actual Etsy settlement and professional VAT advice for important decisions.
Official Etsy fee sources
Fee policies last checked: —
Independent estimate for UK selling accounts. Etsy may change policies and individual account terms. Verify your Payment account and VAT invoices.