Shopify Profit Margin Calculator
See what each order really earns you after product cost, shipping, ads, fees and refunds.
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Book a free callThese tools give estimates for planning, based on the numbers you enter. Fees, taxes and results vary by store, plan and country. This is not financial or tax advice.
What does the Profit Margin Calculator do?
A Shopify profit margin calculator shows how much money you keep from each sale after every cost. Enter your selling price, product cost, shipping, ad spend per order, payment fees and refund rate, and it returns your net profit per order, your net margin and your monthly profit, plus the most you can spend on ads before you lose money.
1. How to use this profit margin calculator?
- 1Enter your selling price and what the product costs you.
- 2Add shipping, your ad spend per order and your payment fees. Use your real Shopify Payments rate if you know it.
- 3Read your net profit per order and net margin, then check the break-even ad spend to see how much room you have.
What each input means
- Selling price
- per unit
- Product cost (COGS)
- per unit
- Shipping cost you pay
- per order
- Ad spend per order
- your cost per sale
- Payment processing fee
- % of the order
- Fixed payment fee
- per order
- Extra Shopify transaction fee
- % (0 if you use Shopify Payments)
- Refund and chargeback rate
- % of orders
- Orders per month
- for the monthly view
2. How is the profit margin calculator calculated?
- Fees = price × (payment % + Shopify fee %) + fixed fee
- Refund loss = price × refund rate
- Net profit per order = price − product cost − shipping − ad spend − fees − refund loss
- Net margin = net profit ÷ price
- Break-even ad spend = price − product cost − shipping − fees − refund loss
A product sells for $36, costs $8, ships for $3 and takes $12 of ad spend per order. With a 2.9% + $0.30 payment fee and a 3% refund rate, fees are $1.34 and refunds cost $1.08, so net profit is $10.58 per order, a 29.4% net margin. The most you could spend on ads per order is $22.58. At 300 orders a month that is about $3,173 of profit.
3. Who should use this tool?
- New store owners checking whether a product can make money before they launch.
- Dropshippers whose margins disappear once ad spend and payment fees are counted.
- Established stores reviewing which products deserve more ad budget.
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Calculate POD profitProfit Margin Calculator: frequently asked questions
What is a good profit margin for a Shopify store?
It depends on the business model. Many dropshipping stores aim for a net margin of about 15 to 25% after ads, while brands with their own products and repeat customers often aim for more. What matters most is that the margin stays positive after you count ad spend, fees and refunds.
What is the difference between gross margin and net margin?
Gross margin only subtracts the product cost from the price. Net margin subtracts every cost of that sale, including shipping, ads, payment fees and refunds, so it shows what you actually keep.
Are payment fees the same for every store?
No. Rates depend on your Shopify plan, your country and the payment method. Check your own rates and enter them in the fee fields.
Does this include monthly costs like my Shopify plan and apps?
No, this tool works per order. To include fixed monthly costs, use the Break-Even Orders Calculator.
Services that move these numbers
Sales Reporting
Daily or weekly sales reports and financial tracking, so you always know how your store is performing.
Learn more →Meta Ads
Pixel and conversion tracking, then campaign creation, testing and scaling on Facebook and Instagram.
Learn more →Conversion Rate Optimization
Turn more of your existing traffic into orders by fixing what stops visitors from buying.
Learn more →Want an expert to look at your real numbers?
Book a free 30-minute call. You’ll leave with clear next steps, whether you hire us or not.