How do I price a product on Shopify?

Add up your cost of goods, shipping, ad spend per sale, and target profit, then divide by 1 minus your payment processing rate. This gives the minimum price needed to keep the profit you want after Shopify Payments fees.

What are Shopify's fees?

Shopify Payments on the Basic plan in the US charges 2.9% + $0.30 per online card transaction. Higher Shopify plans lower the processing rate, and using third-party gateways adds an additional transaction fee on top.

What is a good profit margin on Shopify?

Most successful Shopify stores aim for at least 30–40% net margin after fees and ads, with healthy ecommerce brands often targeting 50% or more on hero products to fund growth and absorb returns.

Should I include ads in my pricing?

Yes. If you plan to run Meta, Google, or TikTok ads, your customer acquisition cost is a real per-sale expense. Adding it into your price up front is the only way to ensure ads don't erase your margin.

Should I include shipping in my pricing?

If you offer free shipping to customers, roll the average shipping cost into your selling price so each sale still covers fulfillment. If customers pay shipping at checkout, leave it out of pricing.

How is this different from a markup formula?

A markup formula multiplies cost by a fixed amount (e.g. 3×). This calculator works backwards from the profit you want to keep after every per-sale cost, so it accounts for processing fees and ads — markup alone doesn't.

Shopify Pricing Calculator

Find the right selling price for your Shopify products. Enter your cost of goods, shipping, ad cost per sale, and target profit — the calculator works back through Shopify payment processing fees to suggest a profitable price.

Last Updated: June 2026

Reviewed for current Shopify Payments processing rates.

Display currency

Enter all amounts in the same currency. The calculator formats results in this currency — it doesn't convert exchange rates.

Cost of goods

Shipping cost per order

Advertising cost per sale

Desired profit per sale

Or target profit margin (%)

Shopify payment processing

Processing fee (%)

Processing flat ($)

Shopify Payments (Basic plan) defaults to 2.9% + $0.30 per online card transaction in the US.

Suggested selling price

$24.00

Estimated processing fees

$1.00

Estimated net profit

$12.00

Profit margin

50.0%

Example Shopify Pricing Breakdown

A realistic example — pricing a product with $8.00 cost of goods, $3.00 ads, and a $12.00 take-home profit goal.

Cost of goods: $8.00
Shipping cost per order: $0.00
Advertising cost per sale: $3.00
Desired profit per sale: $12.00
Processing flat: $0.30
Processing fee: 2.9%
Suggested selling price: ~$24.00

Numbers shown in USD using the same values as the USD example — they are not exchange-rate conversions. Real Shopify fees vary by plan, country, and payment method.

Tips for Pricing Shopify Products

Always include advertising cost per sale — ads typically eat more margin than processing fees do.
Build in a buffer for returns, discounts, and abandoned-cart recovery codes before locking in your price.
If you offer free shipping, roll the shipping cost into COGS so the price still covers fulfillment.
Sanity-check the price against competitors — too low signals low quality, too high needs strong differentiation.

This calculator provides estimates only and should be used as a planning tool.

Formula

Selling Price = (COGS + Shipping + Ads + Desired Profit + Processing Flat) ÷ (1 − Processing % − Margin %)

Worked example

$8 cost of goods, $0 shipping, $3 ads per sale, $12 desired profit, Shopify Payments at 2.9% + $0.30.

Numerator = 8 + 0 + 3 + 12 + 0.30 = $23.30
Denominator = 1 − 0.029 = 0.971
Price = 23.30 ÷ 0.971 ≈ $24.00

Answer: ~$24.00 selling price

How it works

Pricing a Shopify product is more than COGS plus a markup. Payment processing fees, ad spend, shipping, and your target profit all need to be baked into the final price — otherwise margin disappears the moment you turn on ads or run a discount.

This calculator works backwards from the profit you want to keep. It adds up every per-sale cost, then divides by what's left after Shopify Payments takes its percentage. The result is the minimum price you need to charge to actually hit your goal.

You can also set a target profit margin (%) instead of a fixed dollar profit. That's useful when you want every product in your store to keep, say, at least 30% margin after fees.

Common mistakes

Pricing on COGS + markup and forgetting that processing fees take ~3% of every sale.
Ignoring ad spend — if it costs $5 to acquire a customer, that's $5 off your margin.
Offering free shipping without rolling fulfillment cost into the price.
Forgetting that discounts and abandoned-cart codes reduce the effective price you receive.
Underpricing to look competitive, then having no room to fund ads, returns, or growth.

Go deeper with plain-English guides on the same topic.

FAQ

How do I price a product on Shopify?: Add up your cost of goods, shipping, ad spend per sale, and target profit, then divide by 1 minus your payment processing rate. This gives the minimum price needed to keep the profit you want after Shopify Payments fees.
What are Shopify's fees?: Shopify Payments on the Basic plan in the US charges 2.9% + $0.30 per online card transaction. Higher Shopify plans lower the processing rate, and using third-party gateways adds an additional transaction fee on top.
What is a good profit margin on Shopify?: Most successful Shopify stores aim for at least 30–40% net margin after fees and ads, with healthy ecommerce brands often targeting 50% or more on hero products to fund growth and absorb returns.
Should I include ads in my pricing?: Yes. If you plan to run Meta, Google, or TikTok ads, your customer acquisition cost is a real per-sale expense. Adding it into your price up front is the only way to ensure ads don't erase your margin.
Should I include shipping in my pricing?: If you offer free shipping to customers, roll the average shipping cost into your selling price so each sale still covers fulfillment. If customers pay shipping at checkout, leave it out of pricing.
How is this different from a markup formula?: A markup formula multiplies cost by a fixed amount (e.g. 3×). This calculator works backwards from the profit you want to keep after every per-sale cost, so it accounts for processing fees and ads — markup alone doesn't.

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