Backwards pricing · UK fees + VAT

Stop guessing your Etsy price. Solve for it.

Set your costs and the margin you want. The solver returns the listing price that still holds up after Etsy's UK fees, VAT and Offsite Ads.

Find my price
✓ Target-price solver✓ VAT-aware maths✓ Free, no signup

How do you calculate the right Etsy price in the UK?

Price = (your total costs + £0.36) ÷ (1 − 0.108 − VAT effect − your target margin). UK sellers pay 10.8% plus £0.36 before 20% VAT on fees, so the price has to cover your margin after roughly 13% in charges. Model 12% more if any orders come from Offsite Ads.

You actually keep
Listing fee
Transaction fee (6.5%)
Payment processing
Regulatory operating fee (0.32%)
Offsite Ads fee (0%)
VAT on Etsy fees (20%)
POD base + shipping cost
Total taken from the sale

Price it right the first time

To hit your 40% target margin, charge:

What should I charge for a print-on-demand shirt in the UK?

Take the classic example: a Printify tee at roughly £7.50 base plus £3.75 shipping costs you about £11.25 per order. Etsy then takes its UK fees plus VAT on whatever you charge. The price required for each target margin:

Target marginRequired listing priceWith 12% Offsite Ads modelled
20%£17.45£22.22
30%£20.51£27.44
40%£24.87£35.85
50%£31.59£51.70

Read the table right to left: if Offsite Ads might bring the order, the ad-safe 30% price is far above the naive one. That is why so many UK POD shops quietly lose money on ad orders: they priced for the 0% world.

Three pricing mistakes that quietly eat UK Etsy margins

1. Forgetting VAT on fees. US advice quotes 9.5% plus $0.45; your real UK starting point is about 13% after 20% VAT. A price copied from a US forum is under-priced before you begin.

2. Absorbing shipping without modelling it. Free shipping is a pricing decision, not a marketing one. Every percentage fee applies to the total either way, so fold average shipping into the item price deliberately.

3. Treating Offsite Ads as rare. Any order can carry the 12% to 15% surcharge plus VAT with no warning in the order screen. If the 12% case breaks your price, your price is wrong, not the ads.

Pricing questions UK sellers actually ask

How do I calculate what to charge on Etsy UK?
Work backwards from the margin you want. Add your product cost and your provider's shipping, then divide by one minus Etsy's UK percentage fees (10.8% plus the VAT effect, about 13% in total), minus your target margin. For a tee costing £11.25 all-in with a 40% target, that gives about £24.87. The solver above does this instantly and stress-tests the 12% Offsite Ads case.
What is a good profit margin for Etsy UK sellers?
30% to 50% after all fees, VAT on fees and costs is the range that survives bad months. Below 20%, a single refund or Offsite Ads order turns the sale negative. UK margins run thinner than US ones at the same price because of VAT, so price off UK numbers, not US forum advice.
Should I offer free shipping or charge for it?
Etsy's search gives a boost to listings with free shipping, and buyers anchor on the total price either way. Since every percentage fee applies to shipping charges too, most sellers fold average shipping into the item price and mark shipping free. Toggle the shipping field above to compare both scenarios.
Why do I lose money on some Etsy sales even with a profit on paper?
Usually one of three reasons: the order came through Offsite Ads (an extra 12% to 15% plus VAT you did not model), the buyer paid a higher shipping rate than you estimated, or a refund ate the margin. Pricing at 30% to 50% absorbs all three.
Does raising my Etsy price hurt my sales?
Less than sellers fear. Etsy buyers comparison-shop less than Amazon buyers because most listings are differentiated by design and reviews. A £2 to £3 increase on a £20 to £25 item typically costs fewer sales than the margin it recovers. Test on your best seller first for two weeks.
How do Offsite Ads change the price I should charge?
If any of your orders come through Offsite Ads, price as if they all do. At the 12% rate plus VAT, the required price for the same margin rises sharply: about £24.87 at 40% becomes about £35.85 with Offsite Ads modelled in. Flip the toggle above and read the solver: that is your ad-proof price.