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Visit tool →Shopify Profit Calculator
Estimate how much your Shopify store keeps after product costs, payment fees, shipping, refunds, advertising, apps, and other monthly expenses.
Calculator
Enter the rates that apply to your Shopify plan and payment setup.
Net profit
$17,821.00
Gross collected revenue
$45,000.00
Estimated refunds
$1,275.00
Product cost
$16,000.00
Shipping cost
$3,500.00
Payment processing fees
$1,305.00
Shopify transaction fees
$900.00
Advertising spend
$3,500.00
Total expenses
$27,179.00
Profit per order
$35.64
Net profit margin
39.60%
Break-even ROAS
2.11x
Results are simplified estimates for educational purposes only and should not be treated as financial, accounting, legal, or tax advice. See our disclaimer for details.
How this Shopify profit calculator works
This calculator estimates monthly store profit from order volume, average order value, variable costs per order, payment and transaction fees, refunds, advertising, and fixed monthly expenses. Enter the rates that apply to your Shopify plan and payment setup—fees vary by plan, payment method, country, and account.
It is for Shopify merchants and ecommerce operators who want a monthly snapshot, not a full accounting close. Results update when you change inputs; use your own fee percentages rather than assuming one global Shopify rate.
Costs included in the calculation
- Product cost per order (COGS-style unit cost)
- Shipping you pay versus shipping charged to customers
- Payment processing fees (as a percent of collected revenue)
- Shopify transaction fees (as a percent of collected revenue)
- Estimated refunds (as a percent of product revenue)
- Monthly advertising spend
- Monthly Shopify plan and app costs
- Other monthly store expenses you enter
Shopify profit formula
Gross collected revenue = (monthly orders × average order value) + (monthly orders × shipping charged to customer)
Estimated refunds = monthly product revenue × refund rate
Total non-ad expenses = product cost + shipping cost + payment fees + transaction fees + plan/apps + other expenses + estimated refunds
Net profit = gross collected revenue − total non-ad expenses − monthly advertising spend
Net profit margin = net profit ÷ gross collected revenue × 100 (when revenue > 0)
Break-even ROAS = gross collected revenue ÷ maximum break-even ad spend (when ad spend room is positive)
Example Shopify profit calculation
Assume 500 orders, $85 average order value, $5 shipping charged to customers, $32 product cost per order, $7 shipping paid per order, 2.9% payment processing, 2% transaction fees, $3,500 ad spend, $299 plan/apps, 3% refund rate, and $400 other monthly expenses.
- Gross collected revenue: (500 × $85) + (500 × $5) = $45,000
- Estimated refunds: $42,500 × 3% = $1,275
- Product cost: 500 × $32 = $16,000
- Shipping cost: 500 × $7 = $3,500
- Payment fees: $45,000 × 2.9% = $1,305
- Transaction fees: $45,000 × 2% = $900
- Total expenses (with ads): $27,179
- Net profit: $17,821 (margin about 39.6% on collected revenue)
Load the example values in the calculator above to match this scenario.
How refunds affect Shopify profit
Refunds shrink revenue and often leave you with product, shipping, or fee costs you cannot fully recover. This calculator applies your refund rate to product revenue as a simplified monthly estimate. For refund frequency by order count, use the Refund Rate Calculator.
How payment and transaction fees affect margin
Payment processing and Shopify transaction fees scale with collected revenue. A few percentage points on every order can erase margin on low-AOV products. Enter the rates you actually pay—not a generic benchmark.
How advertising spend affects break-even ROAS
Break-even ROAS shows how much revenue you need per dollar of ad spend after other variable and fixed costs in this model. If non-ad expenses already exceed collected revenue, break-even ROAS cannot be calculated (N/A). Compare with the ROAS Calculator and Break-even ROAS Calculator using the same attribution window.
Costs this calculator may not include
- Income taxes, sales tax remittance, and VAT accounting
- Owner payroll, contractors, and warehouse labor not in your inputs
- Inventory write-downs, shrinkage, or currency conversion
- One-time capital purchases or loan interest
- Chargebacks handled outside your refund rate assumption
This is an educational estimate, not tax, legal, or audited financial advice.
Overview
Use this Shopify profit calculator to estimate how much profit you keep after product costs, Shopify fees, payment processing, shipping, refunds, advertising, apps, and other expenses. Built for Shopify merchants tracking monthly order volume—not single-SKU margin only. Enter monthly orders, average order value, per-order costs, fee rates, and fixed monthly spend; the main result is estimated net profit. Pair with Product Pricing, Gross Margin, AOV, or Refund Rate tools when you need catalog or returns context.
Formula
Net profit = gross collected revenue minus product cost, shipping, payment and transaction fees, refunds, advertising, plan/apps, and other monthly expenses.
Example calculation
Using the default example values from the JSON seed for this tool:
- Monthly orders
- 500
- Average order value
- 85
- Product cost per order
- 32
- Shipping charged to customer per order
- 5
- Shipping paid by store per order
- 7
- Payment processing rate
- 2.9
- Shopify transaction fee rate
- 2
- Monthly advertising spend
- 3500
- Monthly Shopify plan and app costs
- 299
- Estimated refund rate
- 3
- Other monthly expenses
- 400
Result: $17,821.00 (Net profit)
How to interpret this result
Net margin percentage after common variable costs in your inputs.
Fixed overhead, returns, and financing sit outside this per-order view.
Verify discounts are reflected in selling price when margin looks too high.
When to use this calculator
- When sales look fine but take-home on each order feels thin
- Before you discount heavily and want to see margin after common variable costs
- When payment and app fees creep up and you want them in one pass
- When you compare SKUs and need a quick margin read per product
Rule of thumb
This margin is from the fields you included. Add anything you treat as variable in real life or the percent will read too high.
Terms used in this calculator
- Gross margin
- Sales minus COGS as a percentage of revenue—nothing below gross profit counted here.
- Net profit (quick model)
- Revenue minus a lump sum of expenses you chose to lump for a planning pass—not audited net income.
- AOV
- Average order size: slice revenue divided by order count—with tax/shipping counted the same each month.
Common mistakes
- Using list price instead of post-discount selling price.
- Missing payment processor or app fees that scale with orders.
- Ignoring returns in categories with heavy RMA.
What to do next
Pricing, refunds, ROAS, and AOV calculators line up storefront economics with ads.
How to improve this result
- Renegotiate COGS or shipping when SKU velocity justifies volume.
- Fix sizing, imagery, and PDP copy when refund reasons cluster on “not as described.”
- Run small pricing tests on best sellers while you watch conversion, not headlines.
Recommended tools
Useful tools for this calculator
These tools are related to the topic of this calculator. Some links may be partner links.
ProfitWell
Pricing and retention resources for subscription businesses.
Visit tool →Shopify
Partner linkCommerce platform for building and scaling an online store.
Visit tool →FAQ
- How do you calculate Shopify profit?
- Subtract total monthly expenses—including product cost, shipping, fees, refunds, ads, and fixed costs—from gross collected revenue. This calculator does that from your order and rate inputs.
- What Shopify costs should I include?
- Include product cost per order, shipping you pay, payment processing, transaction fees, estimated refunds, advertising, Shopify plan and apps, and other monthly store expenses you enter.
- Does this calculator include payment processing fees?
- Yes, when you enter your payment processing rate. Rates depend on your payment setup and country—use your actual percent, not a generic default.
- Does this calculator include Shopify transaction fees?
- Yes, when you enter a Shopify transaction fee rate that matches your plan and payment method.
- How do refunds affect Shopify profit?
- Refunds reduce revenue in this model through your estimated refund rate on product revenue. High refund rates can erase margin even when order volume looks healthy.
- What is a good Shopify profit margin?
- There is no single benchmark. Margin depends on product category, logistics, ad costs, refund rates, and whether you sell DTC or through marketplaces. Compare your result to your own history and costs.
- How do I calculate break-even ROAS for a Shopify store?
- This tool estimates break-even ROAS as gross collected revenue divided by the ad spend room left after other expenses in your inputs. Compare with live ROAS from ads using the same attribution window.
- Are taxes included in this calculator?
- No. Sales tax, VAT, and income taxes are not included. This is a simplified operating estimate, not tax or accounting advice.
Related calculators
Average Order Value (AOV) Calculator
Revenue ÷ orders for coherent slice/time—watch tax and shipping conventions.
Open calculator →Gross Margin Calculator
Revenue minus cost of goods sold, expressed as percent of revenue.
Open calculator →Product Pricing Calculator (Cost + Margin)
Cost-plus shelf price implied by landed cost plus target gross margin %.
Open calculator →Refund Rate Calculator
Calculate refund rate—the percentage of orders refunded during a period.
Open calculator →Affiliate disclosure
Disclosure: Some links on this page may be affiliate links. If you sign up or make a purchase through these links, FounderCalc may earn a commission at no extra cost to you. We only recommend tools that are relevant to the calculator topic.