Etsy pricing guide
How to price soap on Etsy
A worked example with every 2026 Etsy fee, real material costs and your time, plus the price that gives you a 40% or 50% margin.
Example: 4.5 oz cold process soap bar
Here's what one 4.5 oz cold process soap bar might cost to make and ship. Swap in your own numbers in the calculator; supplier prices vary.
| Cost | Per item |
|---|---|
| Oils and butters | $1.05 |
| Lye | $0.10 |
| Fragrance or essential oil | $0.55 |
| Colorant and additives | $0.15 |
| Wrap and label | $0.45 |
| Mailer and padding | $0.60 |
| Materials and packaging | $2.90 |
| Shipping label | $4.50 |
| Your time (8 minutes at $15/hour) | $2.00 |
| At $9.00 | Amount |
|---|---|
| Etsy fees (listing, 6.5%, 3% + $0.25) | $1.30 |
| Profit before your time | $0.29 |
| Profit after paying yourself | -$1.71 |
| Margin after paying yourself | -19% |
| Break-even price | $10.88 |
| Price for a 40% margin | $19.50 |
| Price for a 50% margin | $24.32 |
The pricing formula
With free shipping and no Offsite Ads, Etsy keeps about 9.5% + $0.45 of every order. So the price that leaves you a target margin is:
Price = (total cost + $0.45) ÷ (0.905 − margin)
For this 4.5 oz cold process soap bar, total cost is $9.40, so a 40% margin needs ($9.40 + $0.45) ÷ 0.505 = $19.50.
Pricing tips for soap
- A single $9 bar barely covers a shipping label. Sell sets of three or more, or price shipping so small orders still make money.
- Cold process bars cure for 4 to 6 weeks. That's cash tied up in stock, so keep batches sized to what sells.
- Essential oils vary hugely in price. Lavender and citrus are cheap; rose and sandalwood can double the cost of a bar.
Don't forget Offsite Ads
If a buyer reaches your listing through one of Etsy's ads on another site, Etsy adds 15% of the order (12% once your shop makes $10,000 a year), capped at $100. Price so that sale still makes money: tick the Offsite Ads box in the calculator to check.
Get the free Etsy Pricing Cheat Sheet
Every 2026 Etsy fee, this formula, and the 8 hidden costs most sellers forget, on one printable page.
Questions
How much does Etsy take when you sell soap?
For a $9.00 order, a US seller pays about $1.30 in Etsy fees: the $0.20 listing fee, 6.5% transaction fee and 3% + $0.25 payment processing. That's 14.5% of the sale, before any Offsite Ads fee.
What's a good profit margin for soap on Etsy?
Many handmade sellers aim for 40% to 50% after every fee and cost, including their own time. Below about 30%, a single return or a 15% Offsite Ads sale can wipe out the profit from several orders.
How do I price soap on Etsy?
Add up materials, packaging, the shipping label and your time, then use: price = (total cost + $0.45) / (0.905 - target margin). For the example 4.5 oz cold process soap bar here, that's $19.50 for a 40% margin.
More pricing guides: Candles · Crochet Items · Jewelry · Stickers · Art Prints
Example costs are illustrations; use your own. US seller fees as of October 2026. Oscar Kiki isn't affiliated with Etsy.
Price your whole shop in one sheet.
The Pricing & Profit Calculator does this for every product at once: materials, time, Etsy and other channel fees, and the price that hits your margin. Excel and Google Sheets.