How to Price in Payment Processing Fees for Craft Sales
How to build payment processing fees into craft prices, with the gross-up formula and worked examples.
In this guide
Every card sale costs a fee, often a percentage plus a fixed amount. On small items, fees take a large share. This guide shows how to build fees into your price the right way.
- Most processors charge a percentage plus a fixed fee per sale.
- To cover a percentage fee, divide your price by (1 minus the fee rate), not multiply.
- Fixed fees hurt small sales most.
- Check your platform's current fee page, since fees change.
Why fees matter more than you think
A fixed fee on a small sale can be a big percentage.
Marketplaces may add listing, transaction and payment fees together.
The steps
1. Find your fee rates
Check your platform fee page.
2. Add fixed fees to cost
Per order.
3. Gross up for percentage
Price = cost and profit / (1 - fee rate).
4. Check each channel
Etsy, website and markets differ.
5. Review often
Fees change.
Worked example: three products with a 3% card fee
$20 an hour, 10% overhead, 30% profit and a 3% fee, like many in-person card readers.
| Sticker pack | Wood sign | Custom tumbler | |
|---|---|---|---|
| Materials | $2.00 | $5.00 | $9.00 |
| Labor at $20.00/hr | 0.15 hr = $3.00 | 0.5 hr = $10.00 | 0.4 hr = $8.00 |
| Overhead (10%) | $0.50 | $1.50 | $1.70 |
| Cost to make | $5.50 | $16.50 | $18.70 |
| Plus 30% profit | $7.15 | $21.45 | $24.31 |
| Cover 3% selling fees (divide by 0.97) | $7.37 | $22.11 | $25.06 |
| Suggested price | $8 | $23 | $26 |
The next section shows how the wood sign price changes at higher fee rates.
Price needed at each fee rate
| Fee rate | Price needed | Fee paid |
|---|---|---|
| 3% | $22.11 | $0.66 |
| 5% | $22.58 | $1.13 |
| 10% | $23.83 | $2.38 |
| 15% | $25.24 | $3.79 |
Dividing by (1 minus the fee rate) makes sure you keep your full amount after fees. Multiplying by (1 plus the rate) comes up a little short.
Check current rates on Etsy Fee Basics and Square fees.
Pricing mistakes to avoid
- Multiplying instead of dividing. Divide by (1 - fee rate).
- Ignoring fixed fees. Add them per order.
- Same price on every channel. Fees differ by channel.
- Old fee rates. Check current rates.
Fee checklist
- Fee rates.
- Fixed fees.
- Gross-up formula.
- Channel prices.
- Review dates.
Price by sales channel
Type your cost and each channel's fees into the peach cells. The calculator shows the price for each channel.
Get the Multi-Channel Price CalculatorCalculators that help
- Etsy fees: Find Etsy profit. Use the Etsy Fee and Profit Calculator.
- Channel profit: Compare channels. Use the Sales Channel Profit Comparison Calculator – Etsy vs Website vs Amazon Handmade vs Craft Shows.
- Markup and margin: Check margin. Use the Markup & Margin Calculator – Markup %, Profit Margin, Price for Target Margin & Markup Chart.
- Etsy price: Price for Etsy. Use the Etsy Price Calculator.
Common questions
How do I add fees to my price?
Divide by (1 minus the fee rate).
Should I charge customers a card fee?
Rules vary. Building fees into price is simpler.
Why not just multiply?
Multiplying comes up a little short.
Do fixed fees matter?
Yes, especially on small sales.
Are Etsy fees higher?
Marketplace fees often add up to more than card fees alone.
How often should I check fees?
At least once a year.
Get every calculator in one download
The Lifetime Spreadsheet Vault includes this calculator and 320+ more for candles, tumblers, vinyl, resin, baking, crochet, laser and more. Pay once, and every future spreadsheet is included.
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Lifetime Spreadsheet Vault
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