Shopify Margin Calculator

    Shopify profit depends on more than price minus product cost. This margin calculator spreads your monthly subscription across orders, applies Shopify Payments processing, and separates gross profit from true net profit so you can price with confidence and spot where margin leaks.

    Instant calculations · Editable fee assumptions · Export-ready results

    Inputs

    Values update results instantly. Adjust fee assumptions to match your seller dashboard.

    Pricing

    USD

    Price customer pays before tax.

    Units included in this order.

    Your costs

    USD

    Cost to source or make one unit.

    USD

    What you pay carrier to fulfill.

    USD

    Mailers, boxes, inserts, tape.

    Fees

    %

    Shopify Payments rate, often 2.9% in US.

    USD

    Fixed Shopify Payments fee, often $0.30.

    %

    Optional extra app or channel fee percent.

    Overhead

    USD

    Your Shopify subscription billed monthly.

    Used to spread subscription cost per order.

    Results

    Live estimates based on your inputs and editable fee assumptions.

    Order revenue

    $39.99

    Sale price times quantity.

    Product costs

    $15.00

    COGS for this order.

    Shipping + packaging

    $6.49

    Fulfillment cost.

    Payment fees

    $1.46

    Processing and channel fees.

    Plan cost per order

    $0.39

    Monthly plan divided by orders.

    Gross profit

    $24.99

    Revenue minus product cost only.

    Gross margin

    62.5%

    Gross profit as percent of revenue.

    Net profit

    $16.65

    Revenue minus all costs.

    Net margin

    41.6%

    Net profit as percent of revenue.

    Markup on product

    166.6%

    Markup over product cost.

    What this means

    Strong Shopify margin: gross 62.5%, net 41.6% with $16.65 net per order. Plan adds $0.39 per order at 100 orders per month.

    Shopify margin breakdown

    Interactive breakdown of fees, costs, and remaining profit.

    Distribution

    • Product
      $15.00
      37.5%
    • Shipping + pack
      $6.49
      16.2%
    • Fees
      $1.46
      3.7%
    • Plan / order
      $0.39
      1.0%
    • Net profit
      $16.65
      41.6%

    Total $39.99 · 5 segments · interactive

    Line-item breakdown

    Dollar amounts, share of revenue, and visual proportion.

    Revenue
    $39.99
    Product costs
    $15.00
    Shipping + packaging
    $6.49
    Payment fees
    $1.46
    Plan per order
    $0.39
    Total costs
    $23.34
    Gross profit
    $24.99
    Gross margin
    62.5%
    Net profit
    $16.65
    Net margin
    41.6%
    Markup
    166.6%

    Assumptions used

    • • Transaction 2.90% + $0.30 fixed on $39.99
    • • Additional fees 0.00%
    • • Subscription $39.00 / 100 orders = $0.39 per order

    Share or export this calculation

    Copy your numbers, save as PDF, or share with your team and seller communities.

    Profit intelligence

    Profit Health Score

    A quick read on margin strength, fee efficiency, shipping control, and pricing safety.

    57
    / 100
    FairCalculated from live inputs — updates instantly
    Profit margin: At 0.0%, margin is dangerously thin. Small cost increases will erase profit.
    Fee burden: Only 0.0% of revenue goes to fees — very efficient.
    Shipping cost: Shipping costs look controlled or not applicable to this calculator.

    AI Business Insights

    New

    Personalized recommendations generated from your live calculation. No generic advice — every insight uses your actual numbers.

    Margin is too thin for sustainable growth

    At 0.0% margin, you keep only $16.65 per order. This leaves almost no room for returns, ads, or Etsy Offsite attribution. Even a $1 increase in costs would cut profit by 6% if you cannot raise price.

    Insights update instantly as you edit inputs. They are estimates based on your assumptions, not financial advice.

    Action plan

    Recommended Improvements

    Specific moves you can make today, ranked by potential profit impact. Each uses your real numbers.

    Increase price by $3

    High impact

    Moving from $39.99 to $42.99 would improve margin from 0.0% to 45.7% and add $3.00 profit per order — $150.00 extra on 50 sales per month if volume holds.

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    How it works

    Methodology & formulas

    This calculator is transparent by design. Review the steps and formulas so you can trust the estimate and adjust assumptions when your dashboard differs.

    Calculation steps

    1. 1Revenue = salePrice × quantity.
    2. 2Product cost = productCost × quantity.
    3. 3Shipping and packaging are summed per order.
    4. 4Payment fees = revenue × transactionPercent/100 + fixedFee.
    5. 5Additional fees = revenue × additionalFeesPercent/100.
    6. 6Subscription per order = monthlySubscription / avgMonthlyOrders when orders > 0, else 0.
    7. 7Gross profit = revenue − product cost.
    8. 8Total costs = product + shipping + packaging + paymentFees + additionalFees + subscriptionPerOrder.
    9. 9Net profit = revenue − totalCosts.

    Formulas

    • Revenue = salePrice × quantity
    • PaymentFees = revenue × txn% + fixed
    • AddlFees = revenue × additional%
    • SubPerOrder = plan / avgOrders
    • GrossProfit = revenue − productCost×qty
    • NetProfit = revenue − productCost×qty − shipping − packaging − paymentFees − addlFees − subPerOrder
    • GrossMargin = grossProfit / revenue × 100
    • NetMargin = netProfit / revenue × 100
    • Markup = (salePrice − productCost)/productCost × 100

    Important assumptions

    • Transaction percent is applied to order revenue to model Shopify Payments.
    • Additional fee percent covers optional app or sales channel take rates; defaults to 0%.
    • Monthly subscription is spread evenly: subscriptionPerOrder = planCost / avgMonthlyOrders.
    • If avgMonthlyOrders is 0, subscription per order is treated as 0 to avoid division by zero.
    • Taxes, refunds, chargebacks, and currency conversion are not included.
    • Always verify live Shopify Payments rates for your country and plan.

    Worked example

    $40 tee with $39 plan

    Sell at $39.99, product $15, shipping $4.99, packaging $1.50, 2.9% + $0.30 fees, $39 plan over 100 orders.

    Revenue $39.99, payment fees $1.46, fulfillment $6.49, plan per order $0.39, product $15, net profit about $16.65, net margin about 41.6%, gross margin 62.5%.

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