Free Tool
Shopify Profit Calculator
Calculate your true profit per unit after product costs, shipping, advertising, and Shopify payment processing fees.
How to Calculate Your Real Shopify Margins
Most Shopify store owners dramatically overestimate their profit margins. They subtract product cost from selling price and call it profit, ignoring shipping, ad spend, and platform fees that often eat 30-40% of revenue.
This calculator gives you the full picture. Enter your selling price and product cost to start, then add shipping cost per unit and ad spend per unit (total monthly ad spend divided by monthly orders) for a realistic margin.
The Shopify plan selector automatically applies the correct payment processing rate. Basic charges 2.9% + $0.30, Shopify charges 2.6% + $0.30, and Advanced charges 2.4% + $0.30 per transaction.
Enter your monthly order volume to see projected monthly profit after the plan subscription cost is factored in, plus the break-even number of orders needed just to cover your Shopify plan fee.
Frequently Asked Questions
What fees does Shopify charge per transaction?
Shopify charges payment processing fees on every sale: 2.9% + $0.30 on Basic, 2.6% + $0.30 on Shopify, and 2.4% + $0.30 on Advanced. If you use a third-party payment gateway instead of Shopify Payments, there is an additional 0.5-2% transaction fee on top.
What is a good profit margin for eCommerce?
Most healthy eCommerce businesses operate at 15-30% net profit margin after all costs (COGS, shipping, ads, platform fees). Below 10% is risky since there is little room for ad spend increases or unexpected costs. Above 30% is excellent and usually indicates strong brand pricing power.
How do I calculate true profit on Shopify?
True profit is selling price minus ALL costs: product cost (COGS), shipping, ad spend per unit, Shopify payment processing fees, and a share of your monthly plan cost. Many sellers only subtract COGS and overestimate their margins by 15-20%.
Should I factor ad spend into per-unit profit?
Yes. Divide your total monthly ad spend by total orders to get ad cost per unit. This gives you a realistic view of whether each sale is truly profitable. A product with great margins but high customer acquisition costs can still lose money.
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