Shopify Profit Calculator

Estimate Shopify profit margin after product costs, fees, shipping, and payment processing.

Enter the rates that apply to your Shopify plan and payment setup.

Net profit $0.00
Gross collected revenue $0.00
Estimated refunds $0.00
Product cost $0.00
Shipping cost $0.00
Payment processing fees $0.00
Shopify transaction fees $0.00
Advertising spend $0.00
Total expenses $0.00
Profit per order $0.00
Net profit margin 0.00%
Break-even ROAS N/A

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, and other expenses. It is built for Shopify merchants and ecommerce operators who want a quick per-order margin check. Enter selling price, COGS, shipping, and payment fees; the result is net margin as a percent of price. Treat it as a simplified estimate—pair it with Product Pricing, Gross Margin, AOV, or Refund Rate calculators when you need pricing, catalog, or returns context.

Formula

(Selling price minus summed variable costs) ÷ selling price × 100 as percent.

Example calculation

Using the default example values from the JSON seed for this tool:

Selling price
79
Product cost (COGS)
28
Avg shipping fulfillment
6.5
Avg payment processing
2.6

Result: $0.00 (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

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.

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Shopify

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FAQ

How do you calculate Shopify profit?
Subtract product cost, shipping, and payment fees from selling price, then divide by selling price for margin percent. This calculator does that in one step.
What costs should I include in a Shopify profit calculator?
Include COGS, average shipping per order, and payment processing. Add Shopify plan or app fees only if you allocate them per order elsewhere.
What is a good profit margin for a Shopify store?
It varies by category. Many stores aim for healthy gross margin after variable costs; thin margins need strong volume or repeat buyers.
Does this include Shopify fees?
Include payment processing in the fees field. Monthly Shopify subscription fees are not auto-loaded—add a per-order share if you want them in the math.
Why might this differ from Shopify reports?
Shopify reports may batch refunds, taxes, discounts, and payouts differently. Align definitions before comparing.

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.