How this Shopify profit calculator works
Profit per order = selling price − product cost − shipping − payment processing fee − marketing cost. Payment processing at 2.9% + $0.30 is the standard US rate for Shopify Payments; if you use a third-party gateway, fees may be a little higher. Returns, packaging and app subscriptions are excluded here — add them to the product cost for a fuller picture.
Margin matters more than raw profit. A $50 product with a $15 profit per order looks great until you account for returns, failed payments and rising ad costs. Aim for at least 20-30% net margin on physical goods, and test marketing costs before scaling.
Improving margin
- Bundle products to lower shipping and processing cost per unit.
- Negotiate better product costs with volume.
- Watch ad cost per order — it usually determines whether a store is profitable.