Shopify profit margin calculator

What this calculator counts

Your profit per order after discount, VAT, shipping, packaging, payment fees, apps, returns and ads.

Break-even CPA is the “left before ads” line: the most you can pay in ads for one order without losing money.

Assumptions: a returned order is refunded in full and the product goes back to stock; the shipping, packaging, payment fees and apps of that order stay paid. If your returned products can’t be resold, your real margin is lower than shown.

Gross margin vs. contribution margin

Gross margin only takes out the product cost. It is the margin you see on a product page. Contribution margin keeps going: shipping, fees, apps, returns and ads. It is the money that actually pays your fixed costs and your salary. In the example below, a 66.7% gross margin ends at 13.0% after ads.

The Shopify fees to include

Card fees. With Shopify Payments, you pay a card rate on each order and no extra transaction fee. Your rate depends on your plan: find it in Shopify admin › Settings › Payments › Manage, under “Standard rates” (Shopify Help Center). The fee fields above hold an example rate, not Shopify’s: replace it with yours.

Transaction fees with another payment provider. If you use a third-party payment provider instead of Shopify Payments, Shopify charges a transaction fee on top of that provider’s own card fees. Rates read on shopify.com/pricing on October 22, 2026:

Refunds. Card fees aren’t returned to you when you refund an order (Shopify Help Center). The calculator keeps them as a cost on returned orders.

Apps. Only apps that charge per order go in the calculator. Monthly app subscriptions are fixed costs, like your Shopify plan: your profit per order has to cover them.

Worked example

Made-up numbers: the ones pre-filled in the calculator above.

Questions

What is a good profit margin for a Shopify store?

There is no single good number: it depends on your product, your price and your ad costs. The useful test is whether profit per order, times your orders in a month, covers your fixed monthly costs with room to spare.

How do I calculate my profit margin on Shopify?

Start from what the customer paid, take out VAT if your prices include it, then every cost tied to the order: product, shipping, packaging, payment fees, apps, returns and ads. What is left, divided by the revenue you kept, is your profit margin. That is what this calculator does.

What is the difference between break-even CPA and break-even ROAS?

Same limit, two units. Break-even CPA is the most you can pay in ads for one order. Break-even ROAS is the ROAS that matches it. In the example: $17.55 per order, or a ROAS of 2.56. Your ROAS against your break-even: ROAS calculator.

Does Shopify charge transaction fees?

Not on card payments through Shopify Payments: you pay the card rate only. With a third-party payment provider, yes: from 2% on Basic to 0.2% on Plus, read on shopify.com/pricing on October 22, 2026. On stores created on or after May 12, 2025, the part of an order paid with a gift card or store credit is also charged (Shopify Help Center).

Should I include VAT?

If your prices include VAT, yes: enter the rate. VAT is in what the customer pays, but it is not your money. If tax is added on top at checkout, leave 0. Then pick the revenue your ad account sees, with or without VAT, for the break-even ROAS.