Shopify Profit Calculator
Calculate profit per unit and profit margin for your Shopify store products. Account for payment processing fees, product cost, shipping, advertising costs, and allocated subscription fees to understand true per-unit profitability.
Enter your selling price, product cost, and operating costs to calculate net profit per unit and profit margin. Shopify charges payment processing fees only — no sales commission. Includes shipping, ads, and subscription costs.
Percentage of selling price
Fixed per transaction
Leave blank to ignore subscription costs
Used to allocate monthly subscription per unit
Formula
Payment Fee = (Selling Price × Rate %) + Fixed Fee | Shopify Allocated = Monthly Subscription ÷ Units | Total Costs = Product Cost + Payment Fee + Shipping + Ad Cost + Shopify Allocated | Net Profit = Selling Price − Total Costs | Profit Margin % = (Net Profit ÷ Selling Price) × 100
Shopify does not charge a sales commission — only payment processing fees (percentage + fixed per transaction). Total costs include product, shipping, ads, and allocated subscription fees. Profit margin shows what percentage of each sale is retained as profit. Allocating subscription costs across expected units reveals the true per-unit cost of running your store.
Worked Example
Product selling for $100 · Product cost $30 · Payment 2.9% + $0.30 · Shipping $5 · No ads · Shopify Basic plan $29/month, expecting 100 sales.
Payment fee = ($100 × 2.9%) + $0.30 = $3.20
Shopify allocated = $29 ÷ 100 = $0.29
Total costs = $30 + $3.20 + $5 + $0 + $0.29 = $38.49
Net profit = $100 − $38.49 = $61.51
Profit margin = ($61.51 ÷ $100) × 100 = 61.51%
Each $100 sale generates $61.51 in profit (before taxes and overhead like warehousing, utilities, admin labour). At 100 units/month, that's $6,151/month gross profit.
Frequently Asked Questions
When to use this calculator
- →Pricing products to achieve a target profit margin
- →Evaluating whether a product is profitable given your costs
- →Comparing profitability across different products or suppliers
- →Analyzing the impact of paid advertising on per-unit profitability
- →Determining how many units you need to sell to break even or hit profit targets
Common mistake: forgetting payment processing fees
Many sellers calculate profit without deducting payment processing costs.
| Scenario | Selling Price | Payment Fee | Impact |
|---|---|---|---|
| Small product | $25 | $1.03 | 4.1% of price |
| Medium product | $100 | $3.20 | 3.2% of price |
| Expensive product | $500 | $15.20 | 3.0% of price |
Payment fees may seem small per transaction, but on high-volume products, they significantly reduce profit margin. A product selling 1,000 units/month at $100 each loses $3,200 to payment processing alone.
Responsible store owner note
Shopify charges payment processing fees only (no commission on sales). Rates vary by payment provider, country, and plan. The default 2.9% + $0.30 is typical for Shopify Payments in the US — verify your actual rates in your Shopify admin. This calculator is for estimation of per-unit profit only and does not include fixed overhead, variable marketing spend, or taxes.
Key concept: why Shopify doesn't charge commission
Shopify's business model is fundamentally different from marketplaces like Amazon or Shopee. Shopify makes money from:
- •Monthly subscription fees (recurring revenue per store)
- •Payment processing fees (percentage of transaction value)
- •App ecosystem (third-party apps and integrations)
- •Shipping and shipping label sales
- •Capital services (Shopify Loans, Shopify Balance)
Because Shopify doesn't take a percentage commission, your profit margin improves as sales increase — unlike marketplaces where higher volume means higher fees.
Frequently asked questions
Does Shopify charge a commission on sales?
No — Shopify does not charge a percentage commission on sales. You pay a fixed monthly subscription (Basic $29, Standard $79, Premium $299+) plus payment processing fees (typically 2.9% + $0.30 per transaction with Shopify Payments in the US).
What payment processing fees does Shopify charge?
With Shopify Payments (US), standard rates are 2.9% + $0.30 per online transaction. Rates vary by country and payment provider. International credit cards may add 1%. If using third-party payment providers (Stripe, Square, PayPal), their rates apply. Check your Shopify admin for exact rates.
How do I calculate the Shopify subscription cost per unit?
Divide your monthly subscription cost by expected monthly unit sales. Example: $29 Basic plan ÷ 100 expected sales = $0.29 per unit. If you sell 500 units, that drops to $0.06 per unit. Higher sales volumes spread the fixed cost thinner, improving profit margin per unit.
What is profit margin and why is it important?
Profit margin = (Net Profit ÷ Selling Price) × 100. A 50% margin means you keep 50% of each sale as profit; a 20% margin means 20%. Healthy e-commerce margins are 30–50% for dropshipping, 40–60% for private label, 50–70% for digital products. Higher margins provide a buffer for taxes, overhead, and unexpected costs.
What costs does this calculator NOT include?
This calculator covers direct per-unit costs only: product, shipping, ads, payment fees, and allocated subscription. It does NOT include: fixed overhead (warehouse rent, utilities, insurance), labour (packing, customer service), app subscriptions, professional services, returns/refunds, or additional marketing spend beyond the per-unit ads allocation. Factor those in separately based on your business.
How do I handle multiple payment methods with different fees?
Calculate the weighted average rate. Example: if 70% of sales are by credit card (2.9% + $0.30) and 30% by PayPal (3.49% + $0.49), the weighted average is approximately 3.1% + $0.35 per transaction. Enter that as your payment rate and fixed fee.