Shopify Profit Calculator
Calculate monthly profit for your Shopify store after plan fees, payment processing, and product costs.
Results
Visualization
How It Works
The Shopify Profit Calculator shows your true monthly profit after accounting for your Shopify plan subscription, payment processing fees, and product costs. Higher-tier Shopify plans have lower processing rates, so the math changes as your sales volume grows. Understanding this crossover point helps you choose the right plan.
The Formula
Variables
- R — Revenue — total monthly sales (orders × average order value)
- COGS — Cost of Goods Sold — product cost as a percentage of revenue
- PF — Plan Fee — monthly Shopify subscription ($5 to $399)
- PR — Processing Rate — percentage of each transaction charged by Shopify Payments (2.4%–5%)
- TF — Transaction Fee — flat $0.30 per order for credit card processing
Worked Example
A Basic Shopify store processes 100 orders at $75 average order value = $7,500 revenue. With 35% COGS, product costs are $2,625. Shopify fees: $39 plan + $217.50 processing (2.9%) + $30 transaction fees = $286.50 total fees. Net profit = $7,500 - $2,625 - $286.50 = $4,588.50, a 61.2% margin.
Practical Tips
- Upgrade to the Shopify plan ($105/mo) once your monthly revenue exceeds about $10,000 — the 0.3% processing rate reduction saves more than the plan cost difference.
- Use Shopify Payments to avoid the additional 0.5–2% third-party transaction fee that Shopify charges when using external payment gateways.
- Your COGS percentage is the biggest lever on profit — even a 5% improvement (e.g., 35% to 30%) adds significantly more to profit than reducing Shopify fees.
- Don't forget to budget for marketing — most Shopify stores spend 10–30% of revenue on paid ads before accounting for profitability.
- Annual billing saves about 25% on Shopify plan costs compared to monthly billing — switch once you're confident in your store's viability.
Frequently Asked Questions
What processing rate does Shopify charge?
Shopify Payments rates are 2.9% + $0.30 (Basic), 2.6% + $0.30 (Shopify plan), and 2.4% + $0.30 (Advanced). If you use a third-party payment gateway like Stripe or PayPal, Shopify also charges an additional transaction fee of 2%, 1%, or 0.5% depending on your plan.
When should I upgrade my Shopify plan?
Upgrade from Basic to Shopify plan when your monthly revenue exceeds roughly $10,500. At that point, the 0.3% processing rate reduction saves more than the $66/month plan cost increase. Upgrade from Shopify to Advanced at about $130,000/month revenue.
Are there hidden Shopify fees I should know about?
Beyond plan and processing fees, watch for: app subscriptions (many essential apps cost $10–$100/month), theme purchases ($100–$400 one-time), domain registration ($14/year), and email marketing tools. These operational costs can add $50–$500/month for a typical store.
How does Shopify compare to selling on Amazon?
Shopify gives you lower fees (total ~5–8% vs Amazon's 15–30%) but you're responsible for driving all your own traffic. Amazon has built-in customers but takes a much larger cut and you compete directly with other sellers. Many successful sellers use both channels.
What profit margin should a Shopify store target?
After all fees and product costs (but before marketing), aim for 40–60% gross margins. After marketing spend (typically 15–25% of revenue), a healthy net margin is 15–30%. Stores below 10% net margin after ads are at risk — small changes in ad costs or conversion rates can make them unprofitable.