Shopify Store Profit Calculator

The two-layer Shopify cost structure

Most new store owners look at the subscription price and assume that’s the cost. It isn’t. Shopify charges in two layers: a monthly plan fee, plus a percentage on every transaction. The percentage either comes via Shopify Payments (the built-in processor) or via a transaction fee on top of your third-party processor.

Plan fees and transaction percentages (2024)

The third-party “additional” fee exists specifically to push you to Shopify Payments. Using Stripe, Authorize.net, or any other processor means you pay both their fee (typically 2.9%) AND Shopify’s transaction fee on top. There is no economic reason to use a third-party unless Shopify Payments isn’t available in your country, you need a specific payment method Shopify doesn’t support, or you sell prohibited products (CBD, certain firearms, adult content).

Net profit math

gross profit = monthly revenue − product costs total fees = plan subscription + (transaction fee if third-party) + payment processing fee net profit = gross profit − total fees

A $5,000/month Basic store with $1,500 in product costs, Shopify Payments, and 100 orders:

• Gross profit: $3,500
• Subscription: $39
• Payment fees: $5,000 × 0.029 + 100 × $0.30 = $145 + $30 = $175
• Total fees: $214
• Net: $3,286 (65.7% margin)

When to upgrade plans

A plan upgrade pays for itself the moment the saving on processing exceeds the extra subscription. The order count does not enter into it at all, because the $0.30 per transaction is identical on every plan. Only the percentage moves.

Basic to Shopify: you pay $66 more a month and save 0.3 percentage points, so the crossover is 66 ÷ 0.003 = $22,000 of monthly revenue. Below that, Basic wins.

Shopify to Advanced: $294 more a month for another 0.2 points, so 294 ÷ 0.002 = $147,000 a month. That is a long way above where most independent stores ever get, and it is roughly half the figure people quote, which usually comes from adding the Basic-plan gap in by mistake.

Plus is for $1M+ monthly stores, or for anyone who needs a custom checkout or real business-to-business features. The subscription is negotiated rather than listed.

Most retail stores should stay on Basic through their first $20,000 a month. The calculator below shows what the next plan up would net on your own numbers, which is a better answer than any rule of thumb.

The real cost most new stores miss

Shopify subscription and transaction fees are the easy numbers. The hidden ones:

• Theme ($180 to $400 one-time for premium themes; free themes are usually fine)
• Apps ($20 to $200+/month for advanced features, and it adds up fast if nobody prunes the list)
• Domain ($14 to $20/year)
• Email marketing ($30 to $300/month depending on list size if not using Shopify Email)
• Paid ads, the single biggest line of all. Facebook and Google ads routinely run 30 to 60% of revenue for an early-stage store.

A store reporting “$10K/month revenue” on Shopify is often netting under $2,000 after product cost, fees, ads, and apps. Track every line item.

Shopify Capital, read carefully

Shopify offers cash advances based on store history. Convenient but expensive: the effective APR (Annual Percentage Rate) often runs 30 to 60%. Use it only when the cash makes you more than the advance costs, which in practice means buying inventory for a known high-margin event like Black Friday.

Tax / shipping

Shopify Payments charges by the gross amount including tax and shipping, not just the item price. A $100 item with $20 shipping and $8 tax processes as $128, so you pay $128 × 0.029 + $0.30 = $4.01 in fees, not the $2.90 you might assume. Fold shipping and tax into your AOV (Average Order Value) when forecasting margins, or the fee line will always come in higher than your spreadsheet said.