Shopify Profit Calculator
The Shopify plan price is the smallest number on your bill. The real margin killers are payment processing, a creeping app stack, absorbed shipping, and refunds that quietly return product you already paid for. Unlike a pure dropshipping model, a Shopify store usually holds inventory and pays a flat platform fee regardless of volume. This calculator lays every Shopify-specific cost on the table — including the plan tier's effect on transaction fees — so you see the net profit, not the revenue vanity metric.
Store Economics
The Shopify Cost Stack Most Stores Undercount
Revenue minus product cost is not profit on Shopify. The full stack is:
Net = Revenue − COGS − PlanFee − PaymentFees − Apps − Shipping − Ads − RefundLoss
Payment processing alone (2.9% + $0.30) extracts roughly 3.2% of revenue plus a fixed fee per order. On $44,000/month that is ~$1,450 before a single app is installed. Add a typical $150–$400 app stack and the platform's slice is real money.
Plan Choice: It's About the Gateway, Not the Price
If you use Shopify Payments, plan tier barely affects per-order cost — you mostly pay for features and limits. But if you use a third-party gateway (PayPal, Stripe outside Shopify Payments), lower tiers add a transaction fee on top: 2% on Basic, 1% on Shopify, 0.5% on Advanced. At $50,000/month, that 2% surcharge is $1,000 — more than the entire price gap between Basic and Advanced. This calculator toggles the plan so you can see whether "upgrading" actually saves money once gateway fees are included.
The Silent Margin Killers
- App creep — most stores pay for 5–15 apps and use half. A monthly audit often recovers $50–$200.
- Refunds — you lose COGS and often the gateway fee on returned orders; a 4–6% rate is normal and shaves points off margin.
- Absorbed shipping — free-shipping offers convert better but become a hard cost line; price it in deliberately.
- Abandoned-cart and discount apps — powerful but they discount your AOV; track net, not gross.
Worked Example: 800 Orders at $55 AOV
Revenue = $44,000. COGS = $17,600. Shopify plan $105. Payment fees ≈ $1,322. Apps $150. Ads $3,500. At a 4% refund rate (~32 orders) refund loss ≈ $708. Net profit ≈ $20,615, a 47% margin — healthy because AOV is high and refund rate is controlled. Drop AOV to $35 or push refund rate to 10% and that margin compresses fast, which is exactly the scenario this tool is built to surface before it happens.
Frequently Asked Questions
How much does Shopify really cost?
Plan ($39/$105/$399) plus payment processing (2.9%+$0.30), apps ($50–$500+/mo), and a 0.5–2% extra transaction fee if using a non-Shopify gateway on lower tiers.
Which plan is most profitable?
On Shopify Payments, plan mainly affects features. With a third-party gateway, lower tiers' transaction fee can exceed plan savings at high volume — Advanced can be cheaper overall.
Do refunds hurt profit?
Yes — you lose COGS and often the gateway fee on returns. A 4–6% rate is normal and can erase several margin points; model it explicitly.
Absorb shipping or charge it?
Free shipping lifts conversion but is a real cost line. Enter per-order cost if absorbed; 0 if customers pay. Many bake a flat fee into AOV while advertising free shipping over $X.
How do I improve net margin?
Raise AOV (bundles), audit the app stack monthly, negotiate payment rates at scale, and cut refund rate via accurate listings. Plan choice matters less than these.