3 Shopify plans · plan comparison · break-even · Shopify Payments vs 3rd party · client-side

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//// Business · Ecommerce

Shopify Store Profit Margin Calculator

Full Shopify P&L in one screen. Enter your revenue, COGS, and fixed costs — see gross and net margin, compare Basic vs Shopify vs Advanced plan costs, and find the break-even revenue for each.

Corp Tax Rate21%(federal flat rate)

SE Threshold$400(net earnings floor)

FICA Cap 2024$168,600(SS wage base)

Net Profit / Month

$4,975

Net Margin

49.7%

Gross Margin

69.1%

Effective Txn Rate

3.4%

Recommended Plan

Basic ($39/mo) — Basic saves $66/mo vs Shopify — transaction savings don’t yet justify upgrading

Store Inputs

Monthly Revenue

COGS %

Avg Order Value

Return Rate

App Subscriptions

Monthly Ad Spend

Net Shipping Cost

Shopify Plan

Using Shopify Payments

Monthly P&L

Gross Revenue$10,000

Returns($300)

Net Revenue$9,700

COGS($3,000)

Gross Profit$6,700

Shopify Subscription($39)

Transaction Fees($336)

App Subscriptions($50)

Ad Spend($1,000)

Shipping Costs($300)

Net Profit$4,975

Net Margin49.7%

Plan Comparison at $10,000/mo

Plan	Subscription	Txn Fees	Total Cost	Net Profit	Margin
Basic ($39/mo)best	$39	$336.15	$5,025	$4,975	49.7%
Shopify ($105/mo)	$105	$306.15	$5,061	$4,939	49.4%
Advanced ($399/mo)	$399	$286.15	$5,335	$4,665	46.6%

Break-Even Revenue by Plan

Basic

$2,167

Above break-even

Shopify

$2,259

Above break-even

Advanced

$2,707

Above break-even

Gross Revenue

Monthly Revenue

= $10,000

Top-line revenue before any deductions.

Returns Cost

Revenue × Return Rate

$10,000 × 3.0%

= ($300)

Returns represent direct revenue loss. Even a 5% return rate erodes net revenue significantly. Include restocking/processing costs if applicable.

Net Revenue

Gross Revenue − Returns

$10,000 − $300

= $9,700

Net revenue is what you actually earned after returns. Gross margin is calculated from this number.

Cost of Goods Sold

Revenue × COGS %

$10,000 × 30.0%

= ($3,000)

COGS includes supplier cost, packaging, and any direct production cost. Most dropshipping businesses: 20–40%. Branded products: 30–60%.

Gross Profit

Net Revenue − COGS

$9,700 − $3,000

= $6,700

Gross margin: 69.1%. Gross margin must cover all operating expenses (Shopify, apps, ads, shipping) before any profit emerges.

Shopify Subscription

Basic ($39/mo) plan

= ($39)

Monthly platform fee. Upgrading to Shopify or Advanced lowers transaction fees — but only saves money above a certain revenue threshold.

Transaction Fees

Revenue × 2.9% + 154 txns × $0.3

$10,000 × 2.9% + 154 × $0.30

= ($336)

Effective transaction rate: 3.4%. Shopify Payments: % + $0.30 fixed per transaction (fixed fee becomes proportionally smaller at high AOV).

App Subscriptions

Monthly app spend

= ($50)

Review apps, upsell tools, email marketing, loyalty programs, etc. These often run $50–$500+/mo for mature stores.

Ad Spend

Monthly ad budget

= ($1,000)

Facebook, Google, TikTok, influencers. Track ROAS (Revenue ÷ Ad Spend) separately — ad spend here is treated as a fixed monthly cost.

Shipping Costs

Net outbound shipping (after customer pays)

= ($300)

Enter only the net amount you absorb — i.e., your carrier cost minus what the customer pays. Free shipping offers shift this entirely to you.

Total Costs

COGS + Subscription + Txn Fees + Apps + Ads + Shipping + Returns

= ($5,025)

The full P&L cost stack. Every dollar here must be recovered before profit appears.

Net Profit & Margin

Revenue − Total Costs

$10,000 − $5,025

= $4,975 (49.7% margin)

Net margin is the true health metric. Target 15%+ for sustainable growth. Below 10% leaves insufficient cushion for COGS volatility, fee hikes, or scaling ad spend.

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