Shopify Calculator

Shopify Profitability Calculator

Use this calculator to determine the net profit per sale for your products on Shopify, taking into account product costs, Shopify Payments fees, shipping, and other variable expenses. Understanding your true profitability per item is crucial for setting effective pricing strategies and ensuring the long-term success of your e-commerce business.

function calculateShopifyProfit() { var sellingPrice = parseFloat(document.getElementById("sellingPrice").value); var productCost = parseFloat(document.getElementById("productCost").value); var shopifyProcessingFee = parseFloat(document.getElementById("shopifyProcessingFee").value); var shopifyFixedFee = parseFloat(document.getElementById("shopifyFixedFee").value); var shippingCost = parseFloat(document.getElementById("shippingCost").value); var otherVariableCosts = parseFloat(document.getElementById("otherVariableCosts").value); if (isNaN(sellingPrice) || isNaN(productCost) || isNaN(shopifyProcessingFee) || isNaN(shopifyFixedFee) || isNaN(shippingCost) || isNaN(otherVariableCosts)) { document.getElementById("result").innerHTML = "Please enter valid numbers for all fields."; return; } if (sellingPrice < 0 || productCost < 0 || shopifyProcessingFee < 0 || shopifyFixedFee < 0 || shippingCost < 0 || otherVariableCosts < 0) { document.getElementById("result").innerHTML = "All input values must be non-negative."; return; } // Calculate Shopify Payments processing fee amount var shopifyProcessingFeeAmount = sellingPrice * (shopifyProcessingFee / 100); // Total per-transaction fees var totalTransactionFees = shopifyProcessingFeeAmount + shopifyFixedFee; // Total variable costs per unit (excluding product cost) var totalVariableCostsPerUnit = totalTransactionFees + shippingCost + otherVariableCosts; // Gross Profit (before all variable costs and fees) var grossProfit = sellingPrice – productCost; // Net Profit per unit var netProfit = sellingPrice – productCost – totalVariableCostsPerUnit; var resultHTML = "

Profitability Breakdown:

"; resultHTML += "Product Selling Price: $" + sellingPrice.toFixed(2) + ""; resultHTML += "Product Cost: $" + productCost.toFixed(2) + ""; resultHTML += "Gross Profit (before fees & other costs): $" + grossProfit.toFixed(2) + ""; resultHTML += "Shopify Payments Processing Fee (" + shopifyProcessingFee.toFixed(2) + "%): $" + shopifyProcessingFeeAmount.toFixed(2) + ""; resultHTML += "Shopify Payments Fixed Fee: $" + shopifyFixedFee.toFixed(2) + ""; resultHTML += "Total Transaction Fees: $" + totalTransactionFees.toFixed(2) + ""; resultHTML += "Shipping Cost (per unit): $" + shippingCost.toFixed(2) + ""; resultHTML += "Other Variable Costs (per unit): $" + otherVariableCosts.toFixed(2) + ""; resultHTML += "Net Profit Per Sale: $" + netProfit.toFixed(2) + ""; document.getElementById("result").innerHTML = resultHTML; }

Understanding Your Shopify Profitability

Running a successful e-commerce store on Shopify requires more than just great products and marketing. It demands a deep understanding of your costs and how they impact your bottom line. Our Shopify Profitability Calculator helps you quickly assess the net profit you make on each sale, allowing you to optimize your pricing, manage expenses, and ultimately grow your business.

Why is this calculator important?

• Accurate Pricing: Ensure your selling price covers all costs and provides a healthy profit margin.
• Fee Awareness: Clearly see the impact of Shopify Payments processing fees and fixed transaction costs.
• Expense Management: Account for shipping, packaging, and other variable costs that eat into your revenue.
• Strategic Decision-Making: Make informed decisions about product sourcing, marketing spend, and scaling your operations.

How to Use the Calculator:

1. Product Selling Price ($): Enter the price at which you sell your product to customers.
2. Product Cost ($): Input the cost to acquire or manufacture one unit of your product. This is your direct cost of goods sold (COGS).
3. Shopify Payments Processing Fee (%): This is the percentage charged by Shopify Payments for processing the transaction. For Basic Shopify, it's typically 2.9%; for Shopify plan, 2.6%; and for Advanced Shopify, 2.4%. (Note: If you use a third-party payment gateway, Shopify charges an additional transaction fee, which is separate from the gateway's own fees. This calculator focuses on Shopify Payments for simplicity.)
4. Shopify Payments Fixed Fee ($): This is the fixed amount charged per transaction by Shopify Payments, usually $0.30.
5. Shipping Cost (per unit, $): If you offer free shipping or absorb part of the shipping cost, enter the average cost per unit here. If customers pay for shipping entirely, you can enter 0.
6. Other Variable Costs (per unit, $): Include any other costs directly tied to each sale, such as packaging materials, fulfillment fees, or a portion of advertising spend allocated per unit.

Example Calculation:

Let's say you sell a custom t-shirt on your Shopify store:

• Product Selling Price: $35.00
• Product Cost: $12.00
• Shopify Payments Processing Fee: 2.9%
• Shopify Payments Fixed Fee: $0.30
• Shipping Cost (you absorb): $4.50
• Other Variable Costs (packaging): $1.00

Here's how the calculation would break down:

• Gross Profit (before fees & other costs): $35.00 – $12.00 = $23.00
• Shopify Payments Processing Fee Amount: $35.00 * (2.9 / 100) = $1.02
• Total Transaction Fees: $1.02 (processing) + $0.30 (fixed) = $1.32
• Total Variable Costs (excluding product cost): $1.32 (fees) + $4.50 (shipping) + $1.00 (other) = $6.82
• Net Profit Per Sale: $35.00 – $12.00 – $6.82 = $16.18

By using this calculator, you can quickly see that for every t-shirt you sell at $35, you are making a net profit of $16.18 after all direct costs and fees are accounted for. This insight is invaluable for scaling your business profitably.