Shopify Profit Margin Calculator
Calculate gross margin, net margin, markup and breakeven ROAS per order — with Shopify's transaction fee built in, or for any other store.
Enter your product and operational costs to calculate margins per order.
40.6% Net Margin
How it works
Choose your Shopify plan to fill in Shopify's transaction fee, or switch to another platform and enter its commission.
Product cost, shipping, packaging, ad spend per order and your gateway fee. Leave nothing out — small costs are what turn a healthy gross margin into a thin net one.
If your ads return less than this, each order they bring in loses money. Use it as the floor for every campaign.
Questions
Everything below is on the page for search engines as well as for you — no accordions hiding the answers.
Subtract every cost of an order from its selling price, then divide by the selling price. On Shopify that means product cost, shipping, packaging, ad spend per order, your payment gateway fee and Shopify's own transaction fee. Gross margin counts only product cost; net margin counts everything.
Gross margins of 50–70% are common for D2C brands that make their own products; resellers often run 20–40%. Net margin after shipping, ads and fees is much lower — 10–20% is healthy for most stores. If your gross margin is under 40%, paid ads rarely leave room for profit.
Yes. Shopify Payments is not available in India, so you use a third-party gateway such as Razorpay, PayU or Cashfree, and Shopify charges its own transaction fee on top: about 2% on Basic, 1% on Grow and 0.6% on Advanced. Your gateway charges its own fee as well, usually around 2%.
Gross Margin only subtracts the Cost of Goods Sold (COGS) from your selling price. Net Margin subtracts all other variable costs as well—including shipping, packaging, payment gateway fees, and ad spend—giving you the true profit you take home per order.
Breakeven Return on Ad Spend (ROAS) is the minimum ad performance you need to not lose money on an order. If your Breakeven ROAS is 2.5x, any ad campaign bringing in less than ₹2.50 for every ₹1 spent is unprofitable.
You can improve net margin by reducing COGS through bulk supplier negotiations, lowering shipping costs, increasing your Average Order Value (AOV) so fixed costs take up a smaller percentage, or reducing RTO (Return to Origin) losses.
Related tools
Create a wa.me click-to-chat link with a prefilled message. Paste it in your bio, emails, ads or QR codes.
Turn your WhatsApp number into a print-ready QR code. High error correction, custom colour, PNG and SVG download.
Work out your monthly WhatsApp Business API bill from Meta's per-message rates, in USD and INR.
Improve net margin with higher RTO delivery.
Understanding your unit economics is just the first step. RateUp helps you improve your net margins by recovering lost revenue from RTOs.