Shopify profit margin calculator
This Shopify profit margin calculator takes your price, costs and Shopify plan and shows the fees Shopify takes, what you keep on each order, your margin, and the price you'd need for the margin you want. It uses the card rates on Shopify's pricing page for every plan.
to see how it works.
Results
| Sales (after discount, with shipping) | - |
|---|---|
| Card processing | - |
| Shopify transaction fee | - |
| Total payment fees | - |
| Plan price per order | - |
| Your costs | - |
| Profit per order | - |
| Profit margin | - |
| Markup on product cost | - |
| Break-even ROAS | - |
| Item price for your target margin | - |
For one online order in a US store. Nothing you type leaves this page.
How to work out your Shopify profit margin
Profit margin = profit ÷ sales × 100
Sales are what the customer pays you after any discount, including the shipping they pay, but not sales tax (that goes to the state). Profit is sales minus everything the order costs you:
- Payment fees: with Shopify Payments, a percentage of the amount charged (tax included) plus 30¢. With another provider, that provider's fee plus Shopify's own transaction fee.
- The product: what one unit costs you, including freight to get it to you.
- Fulfillment: the shipping label and packaging.
- Marketing: ad spend per order. This is the cost most sellers leave out, and often the biggest.
- Your plan and apps: spread over the orders in a month.
What Shopify charges on each plan
Online card rates with Shopify Payments, from Shopify's pricing page for US stores. International cards add 1 point on every plan. If you use another payment provider, Shopify adds its own transaction fee on top of that provider's fee.
| Plan | Price per month | Standard card | Premium card | Fee with another provider |
|---|---|---|---|---|
| Basic | $39 ($29 yearly) | 2.9% + 30¢ | 3.5% + 30¢ | 2% |
| Grow | $105 ($89 yearly) | 2.7% + 30¢ | 3.3% + 30¢ | 1% |
| Advanced | $399 ($359 yearly) | 2.5% + 30¢ | 3.1% + 30¢ | 0.6% |
| Plus | from $2,300 | 2.25% + 30¢ | 2.95% + 30¢ | 0.2% |
When a bigger plan pays for itself
Each step up lowers the card rate by a fraction of a point, so it pays once your card sales are big enough. On standard cards, billed monthly, Grow beats Basic above about $33,000 of card sales a month ($30,000 if you pay yearly), and Advanced beats Grow above about $147,000 a month. Below that, the cheaper plan wins unless you need the features.
Worked examples
1. A $45 T-shirt on Basic. With a 10% discount and $6 shipping, sales are $46.50. With 7% sales tax the customer is charged $49.76, and Shopify Payments takes $1.74 (2.9% of $49.76 plus 30¢). The shirt costs $14, the label $7.50 and packaging $1.20, so the profit is $22.06, a 47.4% margin.
2. The same shirt, with $8 of ads per order. Profit drops to $14.06, a 30.2% margin. To keep a 25% margin with that ad cost, the shirt would need to sell for $41.24 before the discount. The break-even ROAS is 2.11: each $1 of ads has to bring in $2.11 of sales just to break even.
3. The same shirt through another payment provider at 2.9% + 30¢. The provider takes $1.74, and on Basic Shopify adds 2%, $1.00, so fees come to $2.74 instead of $1.74.
Margin or markup?
Margin is profit as a share of the selling price. Markup is how much you add on top of cost. A product that costs $10 and sells for $20 has a 100% markup but a 50% gross margin, before any fees. Price from the margin you need, not the markup, because fees and shipping come out of the selling price.
Common mistakes
- Forgetting the fee is on tax and shipping too: Shopify's card fee is charged on the whole amount the customer pays.
- Leaving out ad spend: a product with a healthy margin before ads can lose money after them. Use the break-even ROAS to set your ad targets.
- Ignoring free shipping: if you offer it, the label is still your cost.
- Using the yearly plan price while paying monthly: the headline prices on Shopify's pricing page are for yearly billing.
Sources
- Plan prices, Shopify Payments card rates and third-party transaction fees: Shopify pricing (US). Our tests check every rate in the calculator against a copy of this page saved on the date below.
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