Profit Per Unit

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.

Your store
The order
Your costs

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:

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.

PlanPrice per monthStandard cardPremium cardFee 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%
Plusfrom $2,3002.25% + 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

Sources

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