What are payment processing fees?

Shopify Payments: 2.9% + $0.30 (Basic), 2.7% + $0.30 (Shopify), 2.4% + $0.30 (Advanced). Third-party processors add 2% transaction fee on top.

Are there other costs not included?

Yes - marketing/ads, shipping, apps/plugins, packaging, returns, customer service, and inventory storage costs. These can add 15-30% to expenses.

What profit margin is healthy?

E-commerce targets: 20-40% gross, 10-20% net profit. Below 10% net is risky. Above 30% net is excellent for online retail.

Which Shopify plan should I choose?

Basic ($39): new stores <$1k/mo. Shopify ($105): growing $1-10k/mo. Advanced ($399): established $10k+/mo. Lower fees offset higher plans at volume.

How do I calculate COGS accurately?

Include product cost + shipping to you + customs/duties + packaging materials. Don't include shipping to customer (that's separate) or your labor time.

What's a realistic revenue target?

Month 1-3: $500-2k. Month 6: $5k. Year 1: $10-20k/mo. Top 10% of stores hit $100k+/mo but takes 2-3 years of sustained effort.

Should I use Shopify Payments or third-party?

Shopify Payments saves 2% transaction fee and integrates better. Use third-party (PayPal, Stripe) only if you need specific features or have restrictions.

Gig Economy Calculators

Shopify Profit Calculator

Calculate accurate net profit from your Shopify store revenue after deducting all fees, payment processing costs, COGS (Cost of Goods Sold), shipping, marketing expenses, and operational costs. Track true profitability, identify margin improvement opportunities, and optimize your ecommerce business for maximum profit.

How to Use the Shopify Profit Calculator

Use the Shopify Profit Calculator to accurate net profit from your Shopify store revenue after deducting all fees, payment processing costs, COGS (Cost of Goods Sold), shipping, marketing expenses, and operational costs. Track true profitability, identify margin improvement opportunities, and optimize your ecommerce business for maximum profit.. Enter your values to get accurate, instant results tailored to your situation.

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Shopify Profitability

E-commerce economics

Expert Tips

Fees Consume 10-15% Revenue: Shopify (3-30%) + payment (2-3%) = 5-33% depending on plan. Optimize plan tier and payment processor selection.
COGS Optimization Essential: Reducing COGS by 10% improves profit margin 5-10%. Supplier negotiation and bulk buying critical.
Margin Target 40%+: Healthy e-commerce stores hit 40-50% net profit margins. Below 20% means business model needs reexamination.
Scale Improves Margins: Each order fixed costs spread over more revenue. At 100+ orders/month, margins typically improve 5-15%.

Essential Fundamentals — Profit calculation

Cost Structure

Product Costs: COGS includes manufacturing, sourcing, quality control. Typically 20-40% of revenue.
Platform Fees: Shopify: $29-$399/month. Payment processing: 2.9% + $0.30 per transaction or tiered percentage.

Profit Margins

Gross Profit: Revenue minus COGS. Healthy margin: 50-70% for most e-commerce.
Net Profit: Gross profit minus all operating costs. Industry average: 15-30% after all expenses.

Advanced Strategies — Margin optimization

Profitability

COGS Reduction: Negotiate supplier volume discounts. Manufacturing costs drop 10-20% at higher volumes.
Fee Negotiation: At $50K+ monthly revenue, Shopify offers custom pricing. Payment processors offer 2-2.5% at scale.

Frequently Asked Questions

What are payment processing fees?: Shopify Payments: 2.9% + $0.30 (Basic), 2.7% + $0.30 (Shopify), 2.4% + $0.30 (Advanced). Third-party processors add 2% transaction fee on top.
Are there other costs not included?: Yes - marketing/ads, shipping, apps/plugins, packaging, returns, customer service, and inventory storage costs. These can add 15-30% to expenses.
What profit margin is healthy?: E-commerce targets: 20-40% gross, 10-20% net profit. Below 10% net is risky. Above 30% net is excellent for online retail.
Which Shopify plan should I choose?: Basic ($39): new stores <$1k/mo. Shopify ($105): growing $1-10k/mo. Advanced ($399): established $10k+/mo. Lower fees offset higher plans at volume.
How do I calculate COGS accurately?: Include product cost + shipping to you + customs/duties + packaging materials. Don't include shipping to customer (that's separate) or your labor time.
What's a realistic revenue target?: Month 1-3: $500-2k. Month 6: $5k. Year 1: $10-20k/mo. Top 10% of stores hit $100k+/mo but takes 2-3 years of sustained effort.
Should I use Shopify Payments or third-party?: Shopify Payments saves 2% transaction fee and integrates better. Use third-party (PayPal, Stripe) only if you need specific features or have restrictions.