Gross Profit vs Net Profit
Gross profit generally considers revenue minus product cost. Net profit goes further by accounting for Shopify fees, processing, shipping, ads, refunds and operating costs. Our Shopify profit margin calculator shows both.
Free tool · No login requiredShopify Profit
Shopify Profit
Margin Calculator
Calculate your true Shopify profit margin after product cost, shipping, Shopify fees, payment processing, ad spend and other costs. See your real margin and the selling price needed to reach your target profit.
A free Shopify profit margin calculator for smarter pricing.
- ✓Calculate gross and net margin instantly
- ✓Include Shopify fees, shipping and ads
- ✓Find the price needed to hit your target margin
Profit Margin Result
● Live CalculationGross Profit$35.0070.0% margin
Net Profit$18.2536.5% margin
Profit Margin36.5%
ROI57.5%
Recommended Selling Price
to reach 20.0% marginCost Breakdown (per order)
Product Cost (COGS)−$15.00
Shipping Cost−$5.00
Shopify Fees−$0.00
Payment Processing Fee−$1.75
Ad Cost−$8.00
Other Cost−$2.00
Target Margin Pricing
Find the right price to hit your profit goals
Real-time Results
See your margin update instantly as you make changes
Cost Breakdown
See exactly how each cost affects your margin
For Shopify Sellers
Built for Shopify stores and product businesses
Shopify Profit Margin Calculator with More Clarity
Net profit is what remains after product costs, shipping, Shopify fees, payment processing, advertising and other operating costs are deducted from revenue.
Net Profit
What you actually keep after all costs
Selling Price
The total price your customer pays
Profit Margin
Your profit as a percentage of selling price
Why Margin Matters
Use Shopify margin to guide pricing, ad decisions, cost control, product comparison and profitability planning. A clear margin helps you see which costs to improve.
Target Margin Pricing
Work backwards from a target margin to find a selling price. Percentage fees are recalculated at the new price, so the recommendation includes their impact.
How Shopify Profit Margin Is Calculated
Subtract order costs from revenue, then divide your net profit by selling price.
Profit Margin = Net Profit ÷ Selling Price × 100
The formula used in this Shopify margin calculator.
Revenue$50.00
−Product Cost$15.00
−Shipping$5.00
−Shopify Fees$0.00
−Payment Fees$1.75
−Ad Spend$8.00
−Refunds / Other$2.00
=Net Profit$18.25
÷Selling Price$50.00
=Profit Margin36.5%
Example: Target Margin Scenarios
Recommended prices update with your calculator inputs.
| Target Margin | Product Cost (COGS) | Other Costs | Total Costs | Recommended Selling Price |
|---|---|---|---|---|
| 20% | $15.00 | $16.44 | $31.44 | $39.30 |
| 30% | $15.00 | $16.61 | $31.61 | $45.16 |
| 40% | $15.00 | $16.84 | $31.84 | $53.06 |
What Costs Should You Include?
Include all order costs — not just your product cost.
Product Cost (COGS)
The cost to make or purchase your product, including packaging.
Shipping
Shipping and fulfillment cost you pay per order.
Shopify Fees
Any additional transaction fees and allocated platform costs.
Payment Fees
Percentage and fixed processing charges per transaction.
Ad Spend
Marketing costs per acquired order across your channels.
Refunds & Returns
Include expected refunds, returns and chargebacks under Other Cost.
Example fees are planning estimates. Verify current Shopify fees for your country, plan and payment setup. Add allocated subscription expenses under Other Cost.
What Is a Good Shopify Profit Margin?
A “good” profit margin depends on product category, fulfillment costs, advertising efficiency, return rates, pricing power and operating expenses. A single percentage cannot judge every business.
Lower-margin scenario
10%More sensitive to increases in ad costs, shipping or returns.
Illustrative example · Not an industry averageBalanced-margin scenario
25%More room to cover operating expenses and reinvest.
Illustrative example · Not an industry averageHigher-margin scenario
40%A larger buffer, provided demand holds at your price.
Illustrative example · Not an industry averageHow Target Margin Pricing Works
See how different costs affect your margin and the price needed to reach your goal.
Example Pricing Scenario Live inputs
Selling Price$50.00
Total Costs$31.75
Net Profit$18.25
Profit Margin36.5%
Target Margin35.0%
Recommended Price$48.79
- ✓Test pricing before launching a product
- ✓See how ad costs change margin
- ✓Plan around Shopify fees and refunds
Changing price is only one option. Improve margin by reducing product cost, shipping, fees, ad spend or refund losses.
Frequently Asked Questions
Direct answers about the Shopify profit margin calculator.
1What is Shopify profit margin?+
Shopify profit margin is the share of sales revenue you keep after costs. Net margin includes product costs, shipping, fees, advertising and other expenses.
2How do I calculate Shopify profit margin?+
Subtract all order costs from selling price, then divide net profit by selling price and multiply by 100. This free Shopify profit margin calculator does the calculation instantly.
3What costs should I include in Shopify profit margin?+
Include COGS, shipping, Shopify fees, payment processing, ad spend and other allocated expenses. Add expected refund and return costs under Other Cost.
4What is the difference between gross margin and net profit margin?+
Gross margin uses revenue minus product cost. Net profit margin also deducts shipping, Shopify payment fees, advertising and other operating costs.
5Does this calculator include Shopify fees?+
Yes. Enter a Shopify percentage fee and payment processing percentage plus fixed charge. Defaults share the homepage’s example processing preset; additional Shopify transaction fees default to zero.
6How does the target margin selling price work?+
The calculator divides fixed order costs by one minus percentage fees minus target margin. It recalculates percentage fees at the recommended price.
7What is a good profit margin for a Shopify store?+
It depends on category, fulfillment, advertising efficiency, returns and operating expenses. The scenarios shown are illustrative examples, not industry averages.
8Can I calculate margin for multiple Shopify products?+
Use the calculator for one product or order at a time. The Profit Analyzer currently provides a labeled demo; real multi-product CSV analysis is planned.
Next Step
Analyze Your Whole Shopify Store
A single-order margin calculator is useful for planning. The Profit Analyzer is designed to review margins across products and identify low-margin or loss-making SKUs. Currently a demo; CSV analysis is planned.