How to use the Shopify Profit Calculator
- Step 1
Enter price and costs
Add the selling price, product cost and shipping cost per order.
- Step 2
Choose payment fees
Pick your Shopify plan's card rate or enter your own.
- Step 3
Add apps, ads and returns
Spread monthly app costs over orders and add ad spend per order and your return rate.
- Step 4
Read the results
See profit and margin per order, break-even ROAS and monthly profit at your volume.
Break-even ROAS
Break-even ROAS is the return on ad spend at which an order's profit after product, shipping and fees equals its advertising cost, calculated as 1 divided by the contribution margin. If your contribution margin before ads is 40%, you need a ROAS of 2.5 just to break even; anything below that loses money on every ad-driven sale.
Contribution margin here means revenue minus product cost, shipping, payment fees and the expected cost of returns, before advertising. App subscriptions are fixed costs, so the calculator spreads them across your monthly orders.
Frequently asked questions
What fees does Shopify take per sale?
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With Shopify Payments, you pay a card processing fee per online order, such as 2.9% plus 30 cents on the US Basic plan, with lower rates on higher plans. If you use a third-party payment provider, Shopify adds a transaction fee on top. Your monthly plan and app subscriptions are fixed costs separate from per-order fees.
What is a good profit margin for a Shopify store?
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Many Shopify stores aim for a net margin of 10–20% after product, shipping, fees, ads and returns, though it varies widely by category. Contribution margin before ads is often 40–60% for healthy direct-to-consumer brands. Use the calculator to see which cost moves your margin most before changing price.
How do I calculate break-even ROAS?
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Divide 1 by your contribution margin before advertising. If an order earns 40% after product cost, shipping, payment fees and expected returns, break-even ROAS is 1 ÷ 0.40 = 2.5. Campaigns returning less than 2.5 in revenue per dollar of ad spend lose money on each order they drive.
Should I include returns in my profit calculation?
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Yes. Returns cost you the refunded revenue, return shipping and often the product itself if it cannot be resold. Entering your return rate spreads that expected cost across every order, which gives a truer profit per order than ignoring it. Apparel stores often see return rates of 20–30%, much higher than most categories.
Embed this tool on your site
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<iframe src="https://ecomstudio.ai/embed/shopify-profit-calculator" width="100%" height="720" style="border:0;border-radius:16px" title="Shopify Profit Calculator by EcomStudio.ai" loading="lazy"></iframe> <p style="font-size:12px">Free <a href="https://ecomstudio.ai/tools/shopify-profit-calculator">Shopify Profit Calculator</a> by EcomStudio.ai</p>