Gumroad vs Payhip vs Etsy vs Ko-fi vs Lemon Squeezy: which is better for digital downloads?

I sold on Gumroad for a year, and I wrote up what that year cost me. The other four platforms here I have priced out, not sold on. Every number below comes from the same fee engine behind our platform fee comparison. On September 19, 2026 I rechecked the rates against Gumroad's and Lemon Squeezy's pricing pages and against current published breakdowns for Payhip, Etsy, and Ko-fi, whose pricing pages block automated checks.

Which platform keeps the most of a $29 sale?

Lemon Squeezy, among these five, for a US card buyer. It keeps $27.05 of a $29 sale because its 5% + $0.50 fee already includes card processing. Payhip's free plan and Ko-fi's free tier tie at $26.41, Etsy follows at $25.79, and Gumroad direct comes last of the standard sales at $24.46.

Net payout by sale price, US buyer paying by card:

Platform and sale type	$9 sale	$29 sale	$119 sale
Lemon Squeezy, standard	$8.05	$27.05	$112.55
Payhip, Free Forever plan	$7.99	$26.41	$109.30
Ko-fi, free tier shop sale	$7.99	$26.41	$109.30
Etsy, standard sale	$7.69	$25.79	$107.24
Gumroad, direct sale	$7.04	$24.46	$102.85
Etsy, Offsite Ads sale	$6.34	$21.44	$89.39
Gumroad, Discover sale	$6.30	$20.30	$83.30

The gap looks small per sale and adds up fast. On $29, Lemon Squeezy leaves you $2.59 more than Gumroad direct. At 100 sales a month that is $259.

What does each fee actually include?

Each platform splits its cut differently, and that is where most sellers misread the headline number. The fee engine uses these rates:

• Gumroad: 10% + $0.50 on a direct sale, with card processing of 2.9% + $0.30 on top. Discover sales pay a flat 30% instead (Gumroad pricing).
• Payhip: 5% on the free plan, 2% on Plus ($29 a month), 0% on Pro ($99 a month). Stripe or PayPal processing, about 2.9% + $0.30, applies on every plan (Payhip billing help).
• Etsy: $0.20 listing fee, 6.5% transaction fee, and 3% + $0.25 payment processing for US sellers. Offsite Ads add 15% on attributed sales, or 12% once a shop passes $10,000 a year (Etsy fees and payments policy).
• Ko-fi: 5% on shop sales on the free tier, 0% with a Ko-fi Gold subscription, which costs new creators $12 a month. The processor fee applies either way (Ko-fi Gold).
• Lemon Squeezy: 5% + $0.50, card processing included (Lemon Squeezy pricing). International cards and PayPal can add a small surcharge.

Which is better, Gumroad or Payhip?

Payhip, if fees are the deciding factor. Its free plan nets $1.95 more than Gumroad on every $29 sale, and its paid plans cut the fee further once you sell enough. Plus pays for itself at about $967 a month in sales. Pro beats Plus from about $3,500 a month.

Gumroad earns its higher fee in two places. Discover can send you buyers you did not find yourself, at 30%. And Gumroad handles your tax as merchant of record, covered below. If you already have an audience and you are comfortable with tax, Payhip keeps more of the money.

Which is better, Gumroad or Etsy?

Etsy, if your product is something shoppers browse for. Printables, planners, and templates sell on Etsy because buyers search Etsy for them. A standard Etsy sale also nets more than a Gumroad direct sale: $25.79 against $24.46 on $29.

Watch the Offsite Ads line. When Etsy attributes a sale to its own advertising, 15% comes off the top and the same $29 sale nets $21.44. Shops under $10,000 a year can opt out. Above that, the fee drops to 12% and becomes mandatory.

Which is better, Gumroad or Ko-fi?

Ko-fi, for creators who already have fans. Its free tier takes 5% on shop sales, the same as Payhip's free plan, and nets $26.41 on a $29 sale. Ko-fi Gold removes that 5% for $12 a month, which pays for itself once shop sales pass $240 a month. Gumroad is the better storefront if you want a marketplace and tax handled for you.

Which is better, Gumroad or Lemon Squeezy?

Lemon Squeezy, if you sell to an audience you already have. Its 5% + $0.50 fee includes card processing, so it keeps $2.59 more than Gumroad on every $29 sale, and both platforms handle sales tax as merchant of record. Gumroad is worth its higher fee only if Discover actually sends you buyers.

That "if" is worth measuring rather than assuming. Gumroad shows which sales came through Discover. If that share stays near zero for three months, you are paying marketplace pricing for a checkout page.

Is Lemon Squeezy owned by Stripe?

Yes. Stripe acquired Lemon Squeezy on July 26, 2024. It still runs as its own product: a merchant of record for software and digital products at 5% + $0.50 per sale. That makes it the cheapest option in this comparison that also takes tax off your hands.

Who handles sales tax and VAT?

Two of the five do it by default. Lemon Squeezy is a merchant of record, so it calculates, collects, and remits sales tax and VAT on your sales. Gumroad became a merchant of record at the start of 2025 and does the same inside its 10% fee.

Payhip, Etsy, and Ko-fi each handle some taxes in some regions, and the details change with where you and your buyers live. Read their tax pages before you assume you are covered. For a seller outside the US and EU, this line alone can outweigh a 2-point fee difference.

How should you choose?

Start from what you already have, not from the fee table:

1. No audience yet, product people browse for: Etsy. The marketplace traffic is worth the fees.
2. An audience, and you want zero tax work: Lemon Squeezy, or Gumroad if you also want Discover.
3. An audience, low prices, comfortable with tax: Payhip's free plan, then Plus past about $967 a month.
4. Fans who already support you: Ko-fi, especially if you also take tips.

Run your own price through the platform fee comparison before you move anything. The full fee breakdown for the platform I use is in Gumroad fees in 2026. If the price itself is the open question, the digital product pricing calculator matters more than any fee on this page, and if you are launching your first product, the Startup Launch Arsenal covers pricing and the launch sequence in one pack.

Sources

• Gumroad pricing: 10% + $0.50 direct, 30% Discover, merchant of record.
• Lemon Squeezy pricing: 5% + 50¢, merchant of record.
• Payhip billing help: plan fees.
• Etsy fees and payments policy: listing, transaction, processing, Offsite Ads.
• Ko-fi Gold: 0-5% service fee, Gold for a fixed monthly cost.
• Stripe acquires Lemon Squeezy: July 2024.

Rates checked on September 19, 2026. Payhip, Etsy, and Ko-fi block automated checks, so their figures were cross-checked against at least two current published breakdowns.