Is this calculator specific to Shopify?

The math is ecommerce-specific and works especially well for Shopify stores because it includes the costs Shopify merchants usually need to model: COGS, payment fees, shipping, returns, ad spend, inventory, conversion rate, or repeat purchases depending on the tool.

Should I use gross margin or contribution margin?

Use contribution margin when you are making advertising, discount, or growth decisions. Gross margin is useful, but contribution margin is stricter because it accounts for variable costs like payment fees, fulfillment, shipping, returns, and app costs.

Why does the tool use default values?

Defaults make the calculator useful immediately and show the shape of the result before you enter your own numbers. Replace them with your store's actual numbers before making a final decision.

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Shopify Profit Margin Calculator

Calculate real Shopify profit per order after COGS, shipping, fulfillment, payment fees, returns, apps, and ad cost.

Shopify profit margin calculator

Enter one product's real order economics. The result separates product margin from ad-adjusted profit so you know what you can afford to spend to acquire a customer.

Selling price

COGS

Shipping cost

Fulfillment / pick-pack

Payment fee

Fixed payment fee

Return rate

Cost per return

Ad cost per order

App cost per order

Net profit per order

$25.97

Net margin

32.9%

Break-even ROAS

1.98x

Before overhead.

Max CAC

$39.97

Contribution before ad cost.

Processing fee

$2.59

If your actual CAC is above $39.97, this product is losing money before fixed overhead. A break-even ROAS of 1.98x means anything lower than that needs a higher price, lower costs, or better repeat purchase revenue.

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About this tool

What this free tool calculates

Use this before scaling a product or campaign. It shows gross profit, contribution profit, net margin, break-even ROAS, and the maximum CAC you can afford.

How to use the result

The calculator subtracts COGS, shipping, fulfillment, payment fees, expected return cost, app cost, and ad cost from selling price. Break-even ROAS is based on contribution profit before ads.

If profit is thin, check the product price, planned discount, and paid acquisition math before increasing spend.

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Why the calculator stays input-driven

This free ecommerce tool does not guess demand, scrape competitors, or invent benchmarks. Change the numbers to match your store, then use the result to decide whether a product, campaign, discount, or inventory move is worth doing.

Frequently Asked Questions

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