Shopify Store Profit Margin Calculator
Know your true numbers. Calculate exact profit margin after Shopify fees, app subscriptions, payment processing, and ad spend.
Average revenue per order
Total number of orders per month
Cost of goods sold per item
Your actual shipping cost (if you offer free shipping)
Sum of all Shopify app subscription costs
Meta, Google, TikTok ads etc.
Percentage of orders that are returned
What fees does Shopify take from each sale?
Shopify's direct fees: Payment processing (Shopify Payments): 2.6% + 30¢ per transaction (2.9% + 30¢ for online credit cards). Third-party payment gateways: 0.5-2% additional. Transaction fees (if not using Shopify Payments): 0.5-2% depending on plan. There are NO listing fees for having products. You only pay listing fees if you use Shopify's own checkout via Shopify Checkout.
How do app fees affect my profit margin?
App fees are often overlooked but can dramatically erode margins. The average Shopify store has 6-8 apps installed. Common apps: Email marketing (Klaviyo: $20-100/mo), Reviews (Judge.me: $15-50/mo), Upsells (Reconvert: $50-150/mo), Analytics (Glew: $25-100/mo). At 100 orders/month, even $100/mo in app fees = $1/order overhead. Always calculate app costs per-order when assessing profitability.
What's a healthy profit margin for a Shopify store?
Industry benchmarks: General e-commerce: 15-25% net margin. Dropshipping: 10-20% (lower product costs but higher adspend). Private label/own brand: 25-40%. Reselling: 30-50%. Luxury goods: 50%+. If your margin is below 10%, examine: product costs (should be < 30% of revenue), ad spend ratio (ideally < 20% of revenue), platform/app fees (should be < 5% of revenue).
How do I calculate true profit margin after all fees?
True margin formula: Net Profit = Revenue - (Product Cost + Shipping + Customs + Shopify Fees + App Fees + Payment Processing + Ads Spend + Returns + Refunds). The calculator above uses this approach. Many stores calculate incorrectly by forgetting app fees, returns, or the cost of goods not sold (damaged inventory).
What order volume do I need to be profitable on Shopify?
Minimum viable volume depends on your margins, but generally: To cover $79/mo Shopify plan: need ~$790 revenue/month at 10% margin. To cover $299/mo Advanced plan: need ~$3,000+/month at 10% margin. Calculate your break-even: (Fixed Costs) / (Profit Margin per Order). If your product costs $30, sells for $75, fees = $10, your net per order = $75 - $30 - $10 = $35. To earn $5K/month net, you need ~143 orders/month.