Shopify Profit Calculator
Calculate true Shopify store net profit by factoring in COGS, transaction fees, ad spend, and returns.
Inputs
Monthly Costs Breakdown
Frequently Asked Questions
Why does my Shopify dashboard show higher profits than this calculator?
The Shopify dashboard shows Gross Sales and sometimes Cost of Goods Sold if you input them. However, it does not factor in external expenses like ad spend, merchant transaction fees, return rates, shipping deficits, monthly app costs, and the true cost of your theme or subscriptions. This calculator gives you your true net take-home profit.
What is break-even ROAS?
Break-even ROAS (Return on Ad Spend) is the minimum multiple of revenue you must generate from every dollar spent on ads to not lose money. For example, a break-even ROAS of 2.5 means you must generate $2.50 in revenue for every $1.00 spent on marketing to break even.
How does return rate affect my store margins?
Returns represent a double financial hit: you lose the high-margin revenue of the sale, and you are still liable for the cost of return shipping and payment gateway fees, plus the potential loss of the physical item inventory cost if it cannot be restocked.
Calculate the True Bottom Line of Your Shopify Store
Running a Shopify business successfully requires looking past top-line vanity metrics. High gross sales figures in your admin dashboard look impressive, but the only metric that guarantees survival is net profit. By modeling variable product costs, ad budgets, returns, transaction costs, and software app overhead, this calculator isolates your true profit margins and your exact marketing target thresholds.
How to Use Shopify Profit Metrics
To scale your business sustainably, you must measure your Break-Even ROAS. If your average product cost is high, you need a much higher Return on Ad Spend to run profitable campaigns. Use this simulator to model different price points and shipping fees to find the sweet spot that maximizes customer acquisition without eroding margins.