E-commerce
Shopify Profit Margin Calculator
Accurately calculate your net profit and profit margin on Shopify products, accounting for plan fees, payment processing, shipping, returns, and ad spend.
How It Works
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Step 1: Select Your Plan
Choose your Shopify plan and payment gateway to auto-fill your processing fees.
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Step 2: Enter Costs
Input your selling price, product cost, shipping, returns, and marketing spend.
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Step 3: Get Insights
See your profit margin, break-even price, and colored guidance on profitability.
Why Profit Margin Matters
Profit margin is the percentage of revenue you keep after all costs. On Shopify, these costs include:
- Payment processing: Shopify's transaction fee + gateway fee
- Product cost: Your cost of goods sold (COGS)
- Shipping: What you pay to ship vs. what customers pay
- Returns: Lost product cost + handling fees
- Marketing: Ad spend and promotional costs
A healthy Shopify profit margin is typically 20% or higher. Below 10% leaves little room for unexpected costs or market changes.