Shopify profit margin calculator

Gross margin is (price − cost) ÷ price. On Shopify you also pay card processing — roughly 2.9% + 30¢ on Basic, 2.7% + 30¢ mid-plan, 2.5% + 30¢ on Advanced through Shopify Payments — plus a 0.6–2% surcharge if you use a third-party gateway. This calculator shows margin, markup and net payout together.

Profit per order

$23.28

47.5% margin, 172% markup on cost.

Customer pays
$49.00
Card processing
−$1.72
Net payout
$47.28
Cost of goods
−$18.00
Shipping cost
−$6.00
Margin
47.5%
Markup
172%

Free, no account, and nothing you enter leaves your browser. Rates checked against published sources in August 2026.

Margin and markup are not the same number

This trips people up constantly and it is worth stating plainly:

  • Margin = (price − cost) ÷ price
  • Markup = (price − cost) ÷ cost

A product costing $10 and selling for $15 has a 50% markup and a 33% margin. Pricing a catalogue on "we take 50%" while modelling the business on 50% margins produces a gap that only shows up at scale.

What Shopify takes

With Shopify Payments you pay card processing and nothing else per order: about 2.9% + 30¢ online on Basic, 2.7% + 30¢ on the mid plan, and 2.5% + 30¢ on Advanced. Use a third-party gateway instead and Shopify adds a surcharge of roughly 2% (Basic), 1% (mid) or 0.6% (Advanced) on top of whatever that gateway charges.

That surcharge is the line worth checking. On a $50 order at Basic it is $1 — small alone, and about 2% of revenue across a year.

Why margin decides whether Pinterest is worth it

An organic channel takes time and produces no per-order fee. That makes it worth most to stores with room in the margin to fund the effort, and worth least to stores under about 25% contribution margin — where the honest answer is that pricing, not traffic, is the constraint.

If you clear that bar, Pinterest for Shopify stores covers what the official catalogue feed does and does not do, and what to build on top of it.

Rates change

Shopify revises plan pricing and rates. These were checked in August 2026; every field here is editable so the tool stays correct when they change.

Common questions

What is the difference between margin and markup?

Margin is profit as a share of the selling price. Markup is profit as a share of the cost. A 50% markup is a 33% margin — confusing the two is how products get priced into a loss.

What does Shopify charge per transaction?

Through Shopify Payments it is card processing only: about 2.9% + 30¢ online on Basic, 2.7% + 30¢ on the mid plan and 2.5% + 30¢ on Advanced. Using a third-party gateway adds 0.6–2% depending on plan.

What is a healthy margin for an ecommerce product?

It depends on category, but under about 25% contribution margin after shipping and returns leaves too little to fund acquisition. That is the threshold at which a traffic channel stops being the problem and pricing starts being it.

Should shipping be included?

Include what you pay to ship and subtract what you charge for it. A store with free shipping and no shipping cost line in its maths is systematically overstating margin.

The reasoning behind these numbers

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