Key takeaways
- Shopify Payments costs 2.9% + 30¢ on Basic, 2.7% + 30¢ on Grow and 2.5% + 30¢ on Advanced.
- Third-party gateways add a further 2%, 1% or 0.6%.
- Ad cost per order usually decides whether an order makes money.
How the Shopify profit calculation works
A Shopify order has more costs than the product itself. The card processor takes a percentage plus a fixed fee, you pay a carrier to deliver it, and in most stores ads paid to bring the customer in. This calculator puts all of that on a per-order basis so you can see your real profit, not just the price-minus-cost number.
Gross margin tells you whether the product itself is priced well. Net margin tells you whether the whole order, including ads and shipping, makes money. Many stores have a great gross margin and still lose money per order because their ad cost per order (CAC) is too high. That is why the calculator also shows your break-even ad spend: the most you can spend to win an order before profit hits zero.
Shopify plan fees in 2026
| Plan | Online card rate (US, Shopify Payments) | Extra fee with a third-party gateway |
|---|---|---|
| Basic | 2.9% + 30¢ | 2.0% |
| Grow | 2.7% + 30¢ | 1.0% |
| Advanced | 2.5% + 30¢ | 0.6% |
| Plus | Negotiated (often around 2.15%–2.25% + 30¢) | 0.2% |
Rates last reviewed October 2026 for US stores. International cards, American Express and in-person payments can cost more, and rates differ by country. Check Settings → Payments in your Shopify admin for your exact rates and enter them as a third-party gateway if they differ.
A worked example
A skincare store sells a serum for $49 with free shipping. The product costs $14, shipping costs the store $6.50, packaging and apps add $1.20, and Meta ads cost about $12 per order. On the Basic plan with Shopify Payments:
- Card fees: 2.9% × $49 + $0.30 = $1.72
- Total costs: $14 + $6.50 + $1.72 + $12 + $1.20 = $35.42
- Net profit: $49 − $35.42 = $13.58
- Gross margin: 71.4% · Net margin: 27.7% · Markup: 250%
The gross margin looks excellent, but nearly half of the gross profit goes on ads and shipping. If ad cost rises to $25 per order, the store is roughly breaking even. That is the number to watch.
How to raise your Shopify profit per order
- Raise average order value. Bundles, "frequently bought together" offers and free-shipping thresholds spread the fixed 30¢ fee and your ad cost over more revenue.
- Know your break-even CAC. Set ad campaign targets from the break-even figure above, not from revenue-based ROAS alone.
- Charge for shipping or build it into the price. Free shipping still costs you money, and it should show up somewhere in your pricing.
- Use Shopify Payments where possible. The extra third-party fee of up to 2% can wipe out a thin margin.
- Review supplier costs every quarter. A $1 saving on COGS goes straight to net profit on every order.
Frequently asked questions
What is a good profit margin for a Shopify store?
Gross margins (price minus product cost) of 50–70% are common for direct-to-consumer brands, because ads, shipping and payment fees still have to come out of that gross profit.
After all costs, a net margin of 10–20% per order is a healthy target for most stores. Below 5% leaves little room for returns or rising ad costs.
What is the difference between margin and markup?
Margin is profit divided by the selling price. Markup is profit divided by the cost.
A product that costs $20 and sells for $50 has a $30 gross profit. That is a 60% gross margin but a 150% markup. Margin can never reach 100%, while markup can be any size.
Does Shopify charge transaction fees?
Not if you use Shopify Payments. You only pay the card processing rate for your plan: 2.9% + 30¢ on Basic, 2.7% + 30¢ on Grow and 2.5% + 30¢ on Advanced for US online cards.
If you use a third-party gateway instead, Shopify adds its own fee of 2% on Basic, 1% on Grow or 0.6% on Advanced, on top of what your provider charges.
When should I upgrade from Basic to the Grow plan?
Upgrading saves 0.2% of revenue on card fees, so the extra monthly subscription only pays for itself at high sales volume. To find your break-even point, divide the extra monthly subscription by 0.002. A $60 difference, for example, needs $30,000 a month in card sales.
Most stores upgrade for the extra staff accounts and reporting rather than the rate.