Shopify Profit Calculator
Calculate your true profit per unit on Shopify. Includes product costs, shipping, payment processing fees, and ad spend.
How to Calculate Shopify Profit
Enter Product Details
Input your selling price, product cost, and shipping cost per unit.
Add Ad Spend
Optionally add your monthly ad spend and units sold to include acquisition costs.
See True Profit
Get profit per unit, margin %, fee breakdown, and break-even analysis.
Frequently Asked Questions
What fees does Shopify charge per transaction?
Shopify Payments charges 2.9% + $0.30 per transaction on the Basic plan, 2.6% + $0.30 on Shopify plan, and 2.4% + $0.30 on Advanced. If you use a third-party payment gateway, Shopify adds an additional 2%, 1%, or 0.5% fee respectively. This calculator uses the Basic plan rate (2.9% + $0.30).
What profit margin should I aim for on Shopify?
Most successful Shopify stores aim for 40-60% gross margins before ad spend. After advertising costs, a net margin of 15-30% is healthy. Dropshipping margins are typically lower (15-30% gross), while private label products can achieve 50-70%. Always factor in all costs including returns, which average 15-20% in e-commerce.
How do I calculate break-even on Shopify?
Break-even is when total revenue equals total costs. Per unit: break-even occurs when selling price covers product cost + shipping + Shopify fees + ad cost per unit. For monthly break-even: divide total fixed costs (rent, software, salaries) by your per-unit contribution margin (price minus variable costs).
Should I include ad spend in profit calculations?
Yes, including ad spend gives you a more realistic view of profitability. Calculate ad cost per unit by dividing monthly ad spend by monthly units sold. This tells you your true profit per unit after all customer acquisition costs. Many Shopify stores become unprofitable once ad costs are factored in.
How can I improve my Shopify profit margins?
To improve margins: (1) negotiate better supplier pricing with larger orders, (2) increase AOV through bundling and upsells, (3) reduce shipping costs with fulfillment optimization, (4) lower ad cost per acquisition with better creatives, (5) reduce returns with better product descriptions and images, and (6) consider raising prices if your brand supports it.
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