Shopify Profit Margin Calculator
Enter your product cost, price and fees to see real profit per order, your margin and markup, and the break-even ROAS your ads need to hit. Payment fees included — no sign-up.
Your numbers, per order
Enter what one sale looks like. Everything updates instantly.
Reverse it: price for a target margin
Set the margin you want and we’ll work out the price to charge, using your costs above.
Profit per order
gross profit before ads on a $40.00 sale
- Profit margin
- 46.3%
- Markup on cost
- 86.4%
- Transaction fees
- $1.46
- Total cost per order
- $21.46
Your ads must return at least this much revenue per dollar spent just to break even on this product.
Estimates only. Real margins also depend on returns, discounts, currency conversion and your Shopify plan’s processing rate.
Margin, markup and break-even ROAS — the three numbers that matter
Most Shopify sellers price on gut feel and find out their real margin only when the bank balance stops growing. These three formulas remove the guesswork. The calculator runs them for you, but here is exactly what it is doing so you can trust the output.
- Profit margin = (price − total cost) ÷ price. Profit as a share of revenue. This is the number investors and you should track.
- Markup = (price − total cost) ÷ cost. Profit as a share of cost. Useful when you set prices by multiplying your cost.
- Break-even ROAS = price ÷ gross profit (the same as 1 ÷ margin). The minimum return every ad dollar must produce before you make a cent.
A worked example: you sell a product for $40 that costs $24 all-in. Your profit is $16, your margin is 40%, your markup is 67%, and your break-even ROAS is 2.5x. If your ads can only manage a 2.0x return, you are losing money on every sale — even though the product itself looks profitable on paper.
Why margin and markup are not the same
This trips up almost everyone. A 50% markup is not a 50% margin. Buy for $20, sell for $30: that is a 50% markup ($10 on a $20 cost) but only a 33% margin ($10 on $30 of revenue). Confuse the two and you can badly underprice. The calculator always shows both so you never mix them up.
How to protect your margin on Shopify
Once you know your real margin, defending it is where the profit is. These moves matter most.
Price for your true cost
Include shipping, packaging and the 2.9% + $0.30 fee in your cost base. Pricing off product cost alone quietly erases your margin.
Know your break-even ROAS
Before you scale ads, know the return you must beat. Spending into a 2.5x break-even with a 2.0x campaign just funds your losses faster.
Lift average order value
Bundles, upsells and free-shipping thresholds spread the fixed $0.30 fee and your shipping cost across a bigger basket.
Watch returns and discounts
A 20% return rate or a standing discount code can halve a healthy margin. Model your real numbers, not the sticker price.
Grow the margin you just calculated
The fastest way to widen a thin margin is to raise average order value and keep your app costs in check. These guides and tools help.
Upsell & Cross-sell Apps
Raise order value with targeted offers at cart and checkout.
Bundle & Volume-Discount Apps
Move more units per order to spread fixed costs.
Shopify App Cost Calculator
Total your monthly app spend so fixed costs don’t eat your margin.
Dropshipping vs Print on Demand
Pick the sourcing model with the margin that fits your goals.
Browse all free Shopify tools or the full app directory.