What is a good Shopify profit margin?

For physical products sold direct-to-consumer, a 20–40% net margin after ads is healthy, and 10–20% is normal in competitive niches. Dropshipping margins are typically lower (10–20%), while branded or handmade goods can sustain 40%+.

How accurate are the default fees?

Defaults reflect common Shopify Basic + Shopify Payments rates in the US (2.9% + 30¢ rounded; transaction fee waived when using Shopify Payments, otherwise ~2%). Update the percent fields to match your country and plan.

Does this include the 30¢ flat fee per transaction?

It's bundled into the processing %. For an exact match on small orders, add about 30¢ to your cost of goods or raise the processing % slightly.

What counts as advertising?

Anything you pay to acquire orders: Facebook/Meta, TikTok, Google, influencer fees, affiliate payouts. Use your real monthly total — that's what drives cost per order.

How do I use the break-even number?

Break-even is the orders per month you need before fixed costs (Shopify plan + ads) are covered. Hit that number and every additional order is mostly profit.

Is this calculator free to use?

Yes — no sign-up, no email, no limits. It runs entirely in your browser.

Shopify Profit Calculator

See your true Shopify profit per order, per month, and per year — after subscription, payment processing, transaction fees, shipping, discounts, and ads. A friendly ecommerce profit calculator for creators who want real numbers, not guesses.

Last Updated: June 2026

Reviewed for current platform fees and pricing rules.

Product sale price ($)

Cost of goods ($)

Shipping cost ($)

Discount per order ($)

Monthly sales volume (orders)

Advertising spend / month ($)

Shopify fee settings

Shopify subscription / month ($)

Transaction fee (%)

Payment processing (%)

Looking profitable — about $3,380.25 a month after every fee.

Net profit / order

$22.54

Monthly profit

$3,380.25

Profit margin

50.1%

Monthly expenses

$3,369.75

Yearly revenue

$81,000.00

Break-even

14 orders/mo

Per-order breakdown

Net price $45.00

Cost of goods
$12.00
Shipping
$6.00
Transaction fee
$0.90
Processing fee
$1.31
Ads (per order)
$2.00
Subscription (per order)
$0.26
Net profit
$22.54

Selling on more than one platform? Compare with the Etsy Profit Calculator or set your prices with the Handmade Pricing Calculator.

Formula

Net price = Sale price − Discount · Profit / order = Net price − COGS − Shipping − Transaction% − Processing% − (Ads ÷ Orders) − (Subscription ÷ Orders) · Break-even orders = (Subscription + Ads) ÷ (Net price − variable cost per order)

Worked example

$45 product, $12 cost of goods, $6 shipping, $39/mo Shopify plan, 2% transaction fee, 2.9% payment processing, $300/mo ads, $0 discount, 150 orders/mo.

Net price = 45 − 0 = $45
Fees per order = 45 × 0.02 + 45 × 0.029 = $2.21
Ads per order = 300 ÷ 150 = $2.00; Subscription per order = 39 ÷ 150 = $0.26
Cost per order = 12 + 6 + 2.21 + 2.00 + 0.26 = $22.47
Profit per order = 45 − 22.47 ≈ $22.53; Monthly profit ≈ $3,380

Answer: ≈ $22.53 profit per order · ≈ $3,380/mo · ≈ 50% margin

How it works

Most Shopify dashboards show revenue, not profit. The number that actually matters is what's left after every cost — the platform fee, payment processing, ads, shipping, packaging, and the product itself.

This calculator separates fixed costs (your Shopify plan, monthly ad budget) from variable costs (per-order fees, cost of goods, shipping). That split is what powers the break-even line: the number of orders per month you need before fixed costs are covered and every extra order is profit.

Because it runs in real time, you can use it as a Shopify pricing estimator — bump the sale price up by $5, drop ad spend by $100, or test a 10% discount and watch margin move. Treat it as a sandbox for your store's economics before you change anything in your real admin.

Common mistakes

Counting revenue as profit — gross sales look great until subscription, ads, and processing come out.
Ignoring payment processing fees because they're "small" — at 2.9% on $10k of sales they're $290/mo, not pocket change.
Setting an ad budget without tracking cost per order — a $10 CPA on a $30 product can wipe out the entire margin.
Discounting heavily to drive volume while keeping costs and ad spend the same — net profit usually falls, not rises.
Forgetting that shipping you charge the customer is often less than what you actually pay the carrier.

FAQ

What is a good Shopify profit margin?: For physical products sold direct-to-consumer, a 20–40% net margin after ads is healthy, and 10–20% is normal in competitive niches. Dropshipping margins are typically lower (10–20%), while branded or handmade goods can sustain 40%+.
How accurate are the default fees?: Defaults reflect common Shopify Basic + Shopify Payments rates in the US (2.9% + 30¢ rounded; transaction fee waived when using Shopify Payments, otherwise ~2%). Update the percent fields to match your country and plan.
Does this include the 30¢ flat fee per transaction?: It's bundled into the processing %. For an exact match on small orders, add about 30¢ to your cost of goods or raise the processing % slightly.
What counts as advertising?: Anything you pay to acquire orders: Facebook/Meta, TikTok, Google, influencer fees, affiliate payouts. Use your real monthly total — that's what drives cost per order.
How do I use the break-even number?: Break-even is the orders per month you need before fixed costs (Shopify plan + ads) are covered. Hit that number and every additional order is mostly profit.
Is this calculator free to use?: Yes — no sign-up, no email, no limits. It runs entirely in your browser.

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