Shopify Profit Margin Calculator

To calculate your Shopify profit margin, take what the customer pays for an order, subtract every cost that order creates (product cost, packaging, shipping, payment fees, ad spend and expected refunds), then divide what’s left by what the customer paid. The calculator above does this per order, shows gross margin and markup beside it, and can work backwards from a target net margin to a price.

How do you use this profit margin calculator?

1. Choose Profit from price to check a price you already charge, or Price from target margin to find the price for the margin you want.
2. Enter the selling price or target margin, the product cost, the shipping you pay and your ad cost per order.
3. Under Fine-tune, open Discount and shipping to add the average discount across all orders, the shipping you charge and packaging and fulfillment.
4. Check the payment fields under Fees and refunds. They start at Shopify Payments’ US online card rate on the Basic plan, 2.9% + 30¢, as listed in Shopify’s guide to card processing fees when we checked on 26 October 2026. Replace them with your own rate, and compare plans in the Shopify fees calculator.
5. Add your refund rate there, then any monthly fixed costs and your orders per month under Monthly fixed costs.

What’s the difference between margin and markup?

Margin divides profit by the price; markup divides the same profit by the cost. Shopify’s product details page guide uses a $50 price and a $30 cost, which is a 40% margin. The same $20 profit is a 66.7% markup on the $30 cost.

To convert, markup = margin ÷ (1 − margin) and margin = markup ÷ (1 + markup). Discounts cut margin quickly: in Shopify’s profit reports example, a $20 T-shirt that costs $10 has a 50% margin, which falls to 33% when it sells at 25% off. If you hand out codes from the discount code generator, put their average effect in the discount field.

What should you include in COGS?

Shopify’s Cost per item field is “the cost to you of the product or variant”. For goods you resell, that’s what you paid the manufacturer, excluding taxes, shipping or other costs; for goods you make, it can be based on your labor and material costs. Enter it for a typical order (unit cost × units), with packaging, pick and pack, and outbound shipping in their own fields. If you track landed cost, add inbound freight and import duties to the product cost.

Ad spend, apps and your Shopify plan aren’t COGS; they have their own fields.

Where do you find these numbers in Shopify?

• Product cost: open a product and fill in Cost per item under pricing. Shopify then shows a projected profit and margin, except when Charge tax on this product is selected. Products with variants need a cost on each variant.
• Payment fees: go to Settings > Payments, click Manage in the Shopify Payments section and check Standard rates. For fees actually charged, go to Finance and click View payouts; the transaction export lists the amount, fee and net for each transaction (Shopify Help Center).
• Margins you already earned: go to Analytics > Reports, click the Category filter and choose Profit Margin. Profit is reported only for products that had a cost recorded when they sold.
• Plan and app charges: your bills are in Settings > Billing.
• Ad cost per order: divide ad spend by the orders it brought in. Check your tracking first with the GA4 conversion tracking checklist, because duplicate purchase events can inflate return on ad spend.

How does the target margin mode find a price?

Processing percentages, transaction fees and refunds grow with revenue; other costs are a fixed amount per order. The calculator divides that amount by what’s left of each revenue dollar after the percentage costs and your target, subtracts the shipping you charge, then adjusts for the average discount. If the percentage costs plus the target reach 100%, no price works, and the tool says why.

What is break-even ROAS?

Break-even ROAS is revenue divided by profit before ad cost: the lowest return on ad spend at which an ad-driven order still breaks even. Plan budgets around it with the ROAS calculator.

What doesn’t this calculator include?

• Taxes: enter prices without sales tax or VAT; income tax isn’t modeled. Card fees are a percentage of the whole transaction amount, which includes any sales tax or VAT the customer pays, so your payout fees run slightly higher than shown.
• Currency conversion, chargebacks and disputes: their fees aren’t included.
• Card mix: Shopify’s pricing page lists higher online rates for international and Amex cards, so use a blended rate if many orders pay that way.
• Refunds: a refund here returns the whole order total and the payment fees stay charged, because Shopify’s billing overview says card fees aren’t returned when you refund. Return shipping isn’t included; add it to the shipping you pay if you cover it. Your refund policy sets what you refund.
• Mixed baskets: each calculation is one average order.

This is general information, not financial or tax advice.