Etsy Free Shipping Threshold Calculator
Find the exact price where offering free shipping costs you nothing.
Your details
Private — stays in browserOffer free shipping and charge
$34.54
$6.54 more per unit than your current $28.00 price
The break-even price solves for the same net profit as your current setup — item price plus shipping — after Etsy's full fee stack. Etsy's 6.5% transaction fee applies to shipping too, so the free shipping price is higher than most sellers expect.
Why free shipping is never actually free
When you offer free shipping, you absorb two costs: your real shipping cost AND Etsy's 6.5% transaction fee on what you used to charge the buyer for shipping. Charge $6.50 for shipping and Etsy keeps $0.42 of it — offer it free and that $0.42 comes out of your item profit instead.
The threshold is the item price where folding shipping into the price nets you the same profit as before. Sell above it and free shipping actually helps conversion at no cost to you. Sell below it and you're quietly losing money on every "free shipping" order.
How to use the result
If your break-even price is close to or above your current price, free shipping is a good deal — Etsy shoppers filter for it and conversion improves. If it's much higher, either raise the item price or keep charging separately. Many sellers set the free shipping threshold at exactly their break-even price, then round up to a clean number like $35.
Frequently asked questions
What is Etsy's free shipping threshold?
Etsy promotes free shipping to shoppers and applies its 6.5% transaction fee to the total order, which included shipping before you made it free. Your real threshold is the item price where absorbing the shipping cost and fee leaves your profit unchanged.
Should I offer free shipping on Etsy?
Only if your item price is at or above the break-even threshold. Free shipping improves conversion because shoppers filter for it, but below the threshold it silently cuts into your profit.
How much does Etsy charge on shipping fees?
Etsy charges 6.5% on the shipping amount you charge buyers, plus payment processing on the shipping portion. That is the hidden cost you absorb when you switch to free shipping.
How do I set a free shipping threshold price?
Use this calculator to find your break-even price, then round up to a clean number. Re-check it whenever your actual shipping cost or Etsy fees change.