The four Etsy fees
Every US sale carries three fees and sometimes a fourth. The listing fee is a flat $0.20 per listing, charged when you publish and again each time the listing renews, which happens automatically when an item sells. The transaction fee is 6.5% of the full order value: item price plus the shipping and gift-wrap you charge. The payment processing fee for Etsy Payments in the US is 3% of the order value plus $0.25 per order. The Offsite Ads fee is 15% (12% once your shop passes $10,000 in a year) and applies only to orders attributed to an Etsy ad on Google, Facebook, Pinterest or similar.
The calculator adds them up as: fees = 0.20 × quantity + 6.5% × order + 3% × order + 0.25 + (15% × order if Offsite Ad), and shows what lands in your account. Enter your cost per item to see profit as well.
Why the effective rate is higher than 6.5%
Sellers often quote "Etsy takes 6.5%", but the processing fee and the listing fee push a typical $25 sale to about 11% and a $10 sale to over 15%, because the fixed $0.25 and $0.20 charges weigh more on small orders. An Offsite Ad order lands around 26% to 30%. Price with the effective rate, not the headline rate.
Assumptions
Rates are the US schedule current as of the date shown above the explanation. Sales tax collected by Etsy is excluded from the fee base, as Etsy excludes it. Sellers outside the US should set their own processing rate and fixed fee; some countries also pay a regulatory operating fee as a percentage of the order, which you can fold into the transaction rate. Currency conversion fees, Etsy Ads (on-site), subscriptions and shipping label costs are not included.