Free tool · US & UK · No sign-in
Shopify profit margin calculator
See what your Shopify store keeps after product costs, refunds, payment fees, shipping and advertising. Estimate monthly profit with US or UK rates, then adjust the numbers to fit your business.
How the calculation works
Revenue is only the starting point.
Start with sales after discounts, including customer-paid shipping. Subtract refunds to get net revenue, then subtract the cost of the goods you sold to get gross profit. Shipping, advertising, overhead and Shopify costs turn that into an operating profit estimate.
Operating margin is operating profit divided by net revenue, multiplied by 100. A $30.00 profit on $100.00 of net revenue is a 30% margin. Markup uses product cost as its denominator, so it is a different measure.
Payment fees apply to the original amount charged, including collected tax. Refunding an order does not return the original Shopify Payments processing fee. A third-party provider may have a different refund policy; this estimate assumes its original processing fee is retained too.
Shopify profit questions
What is a good profit margin for a Shopify store?
There is no single target that works for every store. Product category, repeat purchases, return rates and acquisition costs change the picture. Compare the same margin measure month to month, and include all recurring costs before deciding whether a product or campaign is profitable.
Does this calculate gross margin or net profit margin?
The breakdown includes gross profit after COGS. The headline shows operating profit and operating margin after the operating costs you enter. It excludes income tax, interest and unentered costs, so it is not a final net profit figure from your accounts.
How do I include refunds and returned inventory?
Enter refunded sales excluding sales tax / VAT. Reduce COGS only by the cost of returned inventory you actually recover for resale. Keep lost or damaged product costs and return fulfilment costs in your inputs. Refunds can exceed this month’s sales when they relate to older orders.
Why is my Shopify payout higher than my profit?
A payout can include tax you owe and usually does not deduct inventory, advertising, fulfilment and other bills. Timing also matters: the payout period may differ from your sales period. Use the payout reconciliation calculator to check cash received, and this calculator to estimate profitability.
Can I use this for US and UK stores?
Yes. Choose USD or GBP and a Basic, Grow or Advanced plan. Presets use standard domestic online card rates, with editable processing and subscription assumptions. For Shopify Plus, mixed payment types or negotiated rates, enter the rates that apply to your store.
From estimates to actual payouts
Know what reached your books.
A calculator helps you plan. Vatteo helps you review actual Shopify payouts, investigate differences and prepare your month-end close in QuickBooks or Xero.
Explore Vatteo →Rate sources & assumptions
Presets checked : Shopify US pricing, Shopify UK pricing, Shopify Payments refund fees and third-party transaction fees. Your Shopify admin and provider agreement determine your actual charges.
Standard domestic online card payments only. Rates exclude premium/international card surcharges, currency conversion, POS, BNPL, Shopify Plus, apps and taxes on Shopify bills unless you add them to your inputs. Gift-card and store-credit payments, PayPal and manual payment methods have separate rules. Monthly totals are estimates; transaction-by-transaction rounding can differ.