I calculated the exact profit margin on a $10, $25, $50, and $100 digital product across Etsy, Gumroad, and Payhip. The difference is larger than most sellers realize.
TL;DR: Gumroad keeps more per sale at lower volumes (10% flat). Etsy takes 10-16% combined but brings organic traffic. Payhip wins on margins (5% free plan) with no discovery. At $25/sale: Gumroad nets $22.50, Etsy nets ~$20.85, Payhip nets $23.75. The gap widens significantly at higher volumes.
When you're building a digital product business, the platform fee conversation usually goes like this: someone says "Etsy takes 6.5%" and you nod, thinking that sounds reasonable. Then your first month of real sales arrives and you realize the actual take rate is closer to 16%. That gap matters.
I ran the exact numbers across Etsy, Gumroad, and Payhip at four price points — $10, $25, $50, and $100 — including every fee layer most comparison guides conveniently skip. Here's what you actually keep.
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Why Profit Margin Matters More Than Revenue for Digital Sellers
Revenue is vanity. Profit is sanity. This is doubly true for digital product creators because the operational costs (hosting, file delivery, support) are nearly zero — which means the platform fee structure is one of the biggest variables in your actual business economics.
Two sellers can both report "$5,000/month in digital product sales" and be in completely different financial positions depending on where they sell. A seller on Etsy netting 84 cents of every dollar takes home $4,200. A seller on Payhip netting 95 cents takes home $4,750. Same revenue, 13% different take-home — which compounds to $6,600 per year on that volume.
The platform decision isn't just about where buyers find you. It's about what percentage of every sale you actually keep.
Etsy Fee Structure for Digital Products in 2026: Full Breakdown
Etsy has three mandatory fee layers plus one that's functionally mandatory for competitive categories.
Listing fee: $0.20 per item Every time you publish a listing, you pay $0.20. Listings renew every four months or when a sale occurs. For digital products with high volume, this is minor. For sellers with 50+ listings doing low sales volume, it adds up faster than expected.
Transaction fee: 6.5% of sale price This applies to the full sale price, including any shipping (digital products have no shipping, so this applies cleanly to your price).
Payment processing: ~3% + $0.25 Etsy Payments (mandatory in most countries) charges approximately 3% + $0.25 per transaction. This varies slightly by country.
Offsite Ads: 12–15% on referred sales (mandatory above $10K/year) If you sell more than $10,000/year on Etsy, you're automatically enrolled in Offsite Ads and charged 12–15% on any sale that Etsy claims came from their external advertising. You cannot opt out at that volume. This is the fee that blindsides high-volume sellers.
Etsy effective take at common price points (excluding Offsite Ads):
| Sale Price | Listing Fee | Transaction | Processing | Total Fees | You Keep |
|---|---|---|---|---|---|
| $10 | $0.20 | $0.65 | $0.55 | $1.40 | $8.60 (86%) |
| $25 | $0.20 | $1.63 | $1.00 | $2.83 | $22.17 (89%) |
| $50 | $0.20 | $3.25 | $1.75 | $5.20 | $44.80 (90%) |
| $100 | $0.20 | $6.50 | $3.25 | $9.95 | $90.05 (90%) |
Note: At $10, the listing fee represents 2% of the sale — which is why low-priced products on Etsy have disproportionately high effective fee rates.
Gumroad Fee Structure in 2026: What You Actually Keep
Gumroad simplified its pricing in 2023 to a single flat fee.
Platform fee: 10% on every sale This covers payment processing, file hosting, delivery, fraud protection, and VAT/tax remittance. No listing fee, no renewal fee, no monthly fee. You keep 90% of every sale.
Gumroad effective take at common price points:
| Sale Price | Platform Fee | You Keep |
|---|---|---|
| $10 | $1.00 | $9.00 (90%) |
| $25 | $2.50 | $22.50 (90%) |
| $50 | $5.00 | $45.00 (90%) |
| $100 | $10.00 | $90.00 (90%) |
Gumroad's model is the most predictable of the three — you always know exactly what you'll net before a sale happens.
Payhip Fee Structure in 2026: The Underdog Option
Payhip has three tiers, and the free plan is genuinely competitive.
Free plan: 5% transaction fee, no monthly cost Plus plan: $29/month + 2% transaction fee Pro plan: $99/month + 0% transaction fee
All plans include file hosting, automatic delivery, EU VAT handling, and a built-in affiliate program.
Payhip effective take at common price points (Free plan):
| Sale Price | Transaction Fee | You Keep |
|---|---|---|
| $10 | $0.50 | $9.50 (95%) |
| $25 | $1.25 | $23.75 (95%) |
| $50 | $2.50 | $47.50 (95%) |
| $100 | $5.00 | $95.00 (95%) |
Note: Payhip doesn't include payment processing costs in the stated fee — you'll also pay Stripe or PayPal fees (typically 2.9% + $0.30), which reduces the actual margin. Accounting for Stripe: on a $25 sale, you'd net approximately $22.52 instead of $23.75.
Side-by-Side Profit Margin Comparison
Here's the honest three-way comparison including Stripe fees for Payhip:
| Sale Price | Etsy | Gumroad | Payhip (Free + Stripe) |
|---|---|---|---|
| $10 | $8.60 (86%) | $9.00 (90%) | $9.21 (92%) |
| $25 | $22.17 (89%) | $22.50 (90%) | $22.52 (90%) |
| $50 | $44.80 (90%) | $45.00 (90%) | $44.55 (89%) |
| $100 | $90.05 (90%) | $90.00 (90%) | $91.80 (92%) |
The counterintuitive finding: At the $25–$50 sweet spot, all three platforms net you almost identical amounts — within a dollar or two. Where Etsy loses ground is at low price points (under $15) due to the fixed listing fee, and at high volume when Offsite Ads kick in. Where Payhip wins is at high volumes on the Pro plan ($99/month + 0% fees) — at $10,000+/month in sales, the math heavily favors Payhip.
Hidden Costs: What the Comparison Tables Don't Show
Etsy Ads pressure
Etsy's algorithm increasingly rewards sellers who run Etsy Ads. While technically optional, many sellers find their organic reach declines when they stop running ads. The effective cost of "free" Etsy visibility is often a 15–25% ad spend on top of the fee structure above.
Currency conversion
If you sell internationally (which you will), platforms handle currency conversion differently. Etsy automatically converts and charges a currency conversion fee. Gumroad handles conversion at its own rates. This typically costs sellers with global buyers an additional 1–2%.
Refund handling
Gumroad automatically handles refunds and reverses the fee. Etsy refunds the transaction fee but not the listing fee or payment processing fee. On a $15 product refund, you lose ~$0.70 to fees that don't get reversed on Etsy.
Time cost
Etsy requires ongoing SEO optimization, photo updates, and review management that Gumroad doesn't require once you're driving your own traffic. This isn't a dollar cost, but it's real work.
Which Platform Has the Best Profit Margin for Beginners?
The profit margin question can't be fully answered without accounting for traffic.
If you have no existing audience: Etsy's lower net margin is offset by its organic discovery. A $25 sale on Etsy netting $22.17 is infinitely more valuable than a $25 Gumroad listing that gets zero visits. For beginners, Etsy's traffic is worth the fee premium.
If you have 500+ engaged followers or an email list: Gumroad's flat 10% with no listing fees and no ad pressure is the cleaner, more profitable choice. The audience you've built is worth more than Etsy's marketplace traffic.
If you're doing $2,000+/month: Run the Payhip math. At $2,000/month, Payhip Plus ($29/month + 2% fee) saves you meaningful money versus Gumroad. At $5,000+/month, Payhip Pro ($99/month + 0%) generates serious savings.
For a broader platform comparison that includes discovery and audience factors, see our full Etsy vs Gumroad vs Payhip comparison.
Frequently Asked Questions
What percentage does Etsy actually take from digital product sales?
The real combined rate is 10–16% depending on your price point and whether Offsite Ads apply. Breaking it down: 6.5% transaction fee + ~3% payment processing + $0.20 listing fee per sale. If your shop generates over $10,000/year, mandatory Offsite Ads add another 12–15% on Etsy-referred sales. The "6.5% fee" headline figure dramatically undersells the true take rate.
Does Gumroad have any monthly fees?
No. Gumroad charges only when you make a sale — a flat 10% of every transaction. There is no monthly fee, no listing fee, no renewal fee. You can have 1 product or 100 products listed and pay nothing until a sale happens. This zero-risk model makes Gumroad ideal for new sellers testing products before investing in a paid platform.
Is Payhip actually better than Gumroad for profit margins?
On the free plan, Payhip charges 5% versus Gumroad's 10% — but you need to add Stripe/PayPal fees (~3% + $0.30) to Payhip's rate, which brings them to near parity at mid-price points. Payhip genuinely wins at high volume (Pro plan at 0% fees) and at very high price points where the percentage difference is material. For most sellers earning under $2,000/month, the difference is under $50/month — not enough to choose Payhip over Gumroad's better UX and brand recognition.
What are the total fees on a $25 digital product on Etsy?
Approximately $2.83: $0.20 listing fee + $1.63 transaction fee (6.5%) + $1.00 payment processing (~3% + $0.25). You keep approximately $22.17. If that sale came from Etsy's Offsite Ads and you're above the $10K/year threshold, add another $3.00–$3.75, bringing your take to ~$18.42.
Which platform has zero listing fees for digital products?
Both Gumroad and Payhip charge no listing fees. You can publish as many products as you want on either platform at no charge — fees only apply when you make a sale. Etsy charges $0.20 per listing, renewed every four months or at point of sale.
Is it worth switching from Etsy to Gumroad to save on fees?
Usually not as a full replacement — you'd lose Etsy's organic traffic, which has real acquisition value. The smarter move is additive: keep your Etsy listings active for marketplace discovery, and build a Gumroad storefront that you drive your own traffic to. Your Etsy buyers provide social proof; your Gumroad store serves your direct audience at better margins.
What is the cheapest way to sell digital products online in 2026?
Payhip's free plan at 5% (plus payment processing) is the lowest-fee option for sellers with existing traffic. For sellers starting from zero who need marketplace discovery, Etsy's fee premium pays for itself in organic traffic. Gumroad sits in the middle — clean, simple, with a strong creator ecosystem and predictable 10% fee.
How do fees compare when selling high-ticket products ($100+)?
At $100, the dollar amounts are: Etsy keeps ~$9.95, Gumroad keeps $10.00, Payhip (Free + Stripe) keeps ~$8.20. The percentage differences are minimal at this price point — your decision should be based on traffic and audience, not fee optimization. At $100+ products, Gumroad's audience and checkout trust often outweigh the small fee advantage of Payhip.
Related Reading
- Etsy vs Gumroad vs Payhip — Full Platform Comparison
- Gumroad vs Etsy: Which Platform Gets More Organic Traffic?
- How to Sell Digital Products on Gumroad for Beginners
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Michael Tremblay
Founder of Kupkaike. Sells digital workbooks on Etsy and builds AI tools for creators. Follow on X
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