Shopify profit margin calculator

This Shopify margin calculator works out your profit per order, net margin, markup and break-even ROAS from your own numbers: selling price, product cost, shipping, payment processing fees, an optional extra transaction fee and your ad cost per order. It doesn't assume Shopify's fee rates, which vary by plan, country and payment set-up. You enter the rates that apply to you. Everything runs in your browser, and nothing you type is sent anywhere.

How the numbers are calculated

Worked example with the default values

The calculator opens with example numbers. Here's how it gets to its results:

• Payment processing: 3% of 50.00 is 1.50, plus the 0.25 fixed fee, which makes 1.75.
• Profit before ads: 50.00 − 18.00 (product) − 6.00 (shipping) − 1.75 (processing) − 0.00 (transaction fee) = 24.25.
• Profit per order: 24.25 − 8.00 (ads) = 16.25.
• Net margin: 16.25 ÷ 50.00 = 32.5%.
• Markup on product cost: (50.00 − 18.00) ÷ 18.00 = 177.8%.
• Break-even ROAS: 50.00 ÷ 24.25 = 2.06x. Ad campaigns for this product need to return at least 2.06 in revenue per 1 spent to avoid losing money on those orders.

Change one input at a time to see what moves the result most. For many products, shipping and ad cost matter more than the fee rates.

Where to find your fee rates

• Payment processing: your Shopify Payments rates are shown in your Shopify admin under your plan and payment settings. For another provider, such as PayPal, use the rate in your agreement with them. Enter the percentage and the fixed amount per transaction separately.
• Extra transaction fee: on some plans Shopify charges an additional transaction fee when you use a third-party payment provider instead of Shopify Payments. Check your plan details. If it doesn't apply to you, leave it at 0.
• International and currency conversion fees: if a large share of orders are international or in another currency, your effective processing rate is higher. Use a blended rate from a recent payout report.
• Apps and subscription: monthly costs such as your plan and apps aren't per-order fees. Divide them by monthly orders and add them to shipping and fulfilment cost if you want them included.

Using the results

Profit per order is the number that matters most, because it's what's left to pay for your fixed costs and your time. A healthy margin on paper can disappear once shipping, fees and ads are counted.

Markup is useful for setting prices from cost. Margin is useful for comparing products and channels. Don't mix them up: a 100% markup is a 50% gross margin before any other costs.

Break-even ROAS tells you the minimum return your ads need. If your ad platform reports a ROAS below it, those ad-driven orders lose money, even if revenue is growing. Aim comfortably above it to cover returns, discounts and fixed costs.

What this calculator leaves out

• Returns and refunds. If 10% of orders come back, your effective profit per order is lower. Some fees aren't refunded on returns.
• Discounts. Enter the price after typical discounts, or run the calculator twice.
• Taxes and duties. Enter prices excluding VAT, GST or sales tax.
• Fixed costs: staff, rent, software.
• Chargebacks and fraud, which are rare per order but costly.

Making margin reporting automatic

A calculator is fine for pricing decisions. For real margins per product, channel and month you need your actual fees, refunds and costs in one place, which usually means getting Shopify payouts and fees into your accounting system correctly. See the QuickBooks and Xero integration guides, or a custom Shopify app that writes cost and margin data into metafields and reports.