How do I calculate profit margin on Shopify?

Take what the customer pays, subtract payment processing fees, any Shopify transaction fee, your product cost, shipping, packaging and ad spend. That's your profit. Divide it by what the customer paid to get your margin. The calculator does this for you as you type.

What fees does Shopify charge per order?

With Shopify Payments you pay a card rate per order. In the US it's 2.9% + $0.30 on Basic, 2.7% + $0.30 on Grow and 2.5% + $0.30 on Advanced for online cards. If you use another payment provider, Shopify adds a transaction fee of 2%, 1% or 0.6% depending on the plan, on top of the provider's own rate. Rates differ by country, so you can change them in the calculator.

What's the difference between margin and markup?

Margin is profit as a share of the selling price. Markup is profit as a share of your product cost. A product that costs $20 and earns $10 profit at a $30 price has a 33% margin and a 50% markup.

What is break-even ROAS?

Return on ad spend (ROAS) is revenue divided by ad spend. Break-even ROAS is the lowest ROAS at which an order still covers all its costs. If yours is 2.5x, every $1 of ads must bring in at least $2.50 of sales.

What is a good profit margin for a Shopify store?

It depends on the product and how you win customers. Stores that rely on paid ads need much more room per order than stores selling to an existing audience. Use the target margin field to see what price you would need.

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Shopify Profit Margin Calculator

See what you keep from each order after fees, costs and ads.

One order

The customer pays

Selling price$

Discount%Shipping fee$

You pay

Product cost$Shipping cost$Packaging, other$Ads to win the order$

Shopify fees

Your plan

You take payments with

Card fee%Plus, per order$

These are US fees. Change them if yours differ.

Your month and your goal

Orders per month

Fixed costs$Margin you want%

Fixed costs are what you pay every month: your plan, apps and tools.

Profit per order

$17.25

34.5% marginof the $50.00 the customer pays

Where the money goes

Customer pays: $50.00
Product, shipping, packaging: -$21.00
Payment fees: -$1.75
Ads: -$10.00
You keep: $17.25

Your ad budget

Most you can spend to win an order: $27.25
Sales you need per $1 of ads: $1.83

Your month and your goal

Profit per month

$1,696.00

Price for a 30% margin

$46.65

Markup on product cost: 115%

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Good to know

How the Calculator Works

Revenue is your price after the average discount, plus any shipping the customer pays. From that we take the payment processing fee for your plan, the extra Shopify transaction fee if you use a different payment provider, your product, shipping and packaging costs, and the ad spend it takes to win the order.

The default card rates are Shopify Payments' US online rates, last checked against our platform comparison in 2026. Shopify changes its rates now and then and they differ by country, so check your own admin and edit the rate fields if yours differ.

Starting a Store?

The theme decides how your products look before anyone reads a word. Every theme in our Shopify themes library is scored by our reviewers on design and build quality, and there's a free themes page if you'd rather keep your launch costs down.