Why Shopify margins surprise people
There is no marketplace taking 15%, which feels like freedom — until you add payment processing (2.9% + 30¢ on the basic plan), app subscriptions, shipping you absorb, and ad spend per order. A 49.99 product with an 18.00 cost rarely clears 50% once all four are counted.
Reading the output
The calculator allocates your monthly plan fee across orders to give a true per-order platform cost, then subtracts payment fees, shipping and advertising. The result is the number you actually keep — the only figure that should drive your ad bids and discount decisions.
Levers that move the number
- Average order value: bundles dilute fixed costs across more revenue
- Payment mix: Shop Pay and local methods often cost less than cards
- Shipping strategy: free shipping with a price increase beats absorbing it silently
- Ad efficiency: the same 4.00 per order at 6.00 changes everything
Where this differs from net profit
This is contribution per order. It excludes fixed overhead (rent, salaries, apps you pay for regardless of volume) and tax. Use the net profit calculator for the business-level view.
Frequently Asked Questions
What is a healthy Shopify margin?
Aim for 25–40% contribution margin per order after ads; below 15% leaves no room for returns or discounts.
Are Shopify payments really 2.9% + 30¢?
That is the Basic plan rate in the US; higher plans reduce the percentage but not the fixed fee.
Should I include ad spend here?
Yes if you want a true per-order profit. Leave it at zero to see the product's gross contribution before marketing.
Assumptions & disclaimer
Results are estimates for planning. Fee schedules, tax brackets and deduction limits change; confirm current figures with the marketplace, the IRS or a qualified accountant before making decisions. Nothing here is financial, tax or legal advice.
Privacy & Your Data
BizCalcTool runs entirely in your browser. The figures you enter are never uploaded, stored or shared — there is no backend to send them to.