Shopify Profit Margin Calculator
Calculate your true profit margins after all costs. See how upsells can boost your margins without increasing ad spend.
Shopify profit margin is the percentage of revenue remaining after subtracting all costs including product cost (COGS), shipping, payment processing fees, and marketing expenses.
Enter Your Product Details
Benchmarks from TrueProfit
Your Profit Analysis
Enter your product details to see your profit margins.
Why Upsells Are Pure Profit
No Acquisition Cost
You already paid to acquire the customer. Upsells have zero additional ad spend.
Higher Net Margin
Without marketing costs, upsell revenue goes almost entirely to profit.
Same Shipping
Add products to existing orders with minimal or no additional shipping cost.
Shopify Profit Calculator FAQ
How do I calculate profit margin for my Shopify store?
Gross margin = (Selling Price - Product Cost) / Selling Price × 100. Net margin = (Selling Price - All Costs) / Selling Price × 100. All costs include COGS, shipping, payment processing (2.9% for Shopify Payments), and marketing expenses.
What is a good profit margin for Shopify stores?
Average ecommerce gross margin is 45%, with good stores achieving 60%+. For net margin, average is 10%, with good stores achieving 20%+. Margins below 10% net are considered below average and may indicate pricing or cost issues.
What's the difference between markup and margin?
Markup is the percentage added to cost to get selling price: (Price - Cost) / Cost × 100. Margin is profit as a percentage of selling price: (Price - Cost) / Price × 100. A 50% markup equals approximately 33% margin.
What costs should I include in my Shopify profit calculation?
Include: product cost (COGS), shipping costs, payment processing fees (2.9% + $0.30 for Shopify Payments), Shopify transaction fees (if not using Shopify Payments), marketing/ad costs, packaging, returns/refunds allowance, and app subscription costs.
How do Shopify payment processing fees affect profit?
Shopify Payments charges 2.9% + $0.30 per transaction on the Basic plan, reducing to 2.4% + $0.30 on Advanced. For a $75 order, that's about $2.48 in fees. Third-party payment processors also incur an additional 0.5-2% Shopify transaction fee.
How can I improve my Shopify profit margins?
Key strategies: increase average order value through upsells (adds revenue without acquisition cost), negotiate better supplier pricing, reduce shipping costs, optimize ad spend, and reduce returns. Upsells are especially effective as they have zero customer acquisition cost.
Shopify Profit Margin Formulas
Gross Profit Margin
Measures profitability before operating expenses. Good benchmark: 45-60%.
Net Profit Margin
Your true profit after all expenses. Good benchmark: 10-20%.
Markup Percentage
How much you add to cost. 100% markup = 50% margin.
Break-Even Point
Revenue needed to cover all costs. Include Shopify subscription in fixed costs.