Shopify Profit Calculator
Calculate your real profit margin after COGS, refunds, and payment fees.
How It Works
Most Shopify merchants track revenue but not real profit. This calculator helps you estimate your actual profit by factoring in the three biggest hidden costs: Cost of Goods Sold (COGS), Refunds, and Payment Processing Fees.
Profit = Revenue - (Revenue × COGS%) - (Revenue × Refund%) - (Revenue × Fee%)
Example
A store making $20,000/month with 30% COGS, 5% refund rate, and 2.9% payment fees:
- Revenue: $20,000
- COGS: -$6,000 (30%)
- Refunds: -$1,000 (5%)
- Payment Fees: -$580 (2.9%)
- Estimated Profit: $12,420 (62.1% margin)
Frequently Asked Questions
How is Shopify profit calculated?
Shopify profit = Revenue - COGS - Refunds - Payment Processing Fees - Shipping Costs. Most merchants only track revenue, but the real profit is what remains after all costs.
What is a good profit margin for Shopify stores?
A healthy Shopify profit margin is typically 20% or higher. If your margin is below 10%, you should review your COGS, refund rate, and payment fees to find areas for improvement.
What are typical Shopify payment processing fees?
Shopify Payments charges around 2.9% + $0.30 per transaction for online stores in the US. Third-party payment providers may charge different rates. This calculator uses 2.9% as the default.
How do refunds affect my Shopify profit?
Refunds reduce your revenue directly, but they also cost you in payment processing fees (which are usually not refunded), shipping costs for return labels, and restocking labor.
What is COGS and how do I calculate it?
COGS (Cost of Goods Sold) is the direct cost of producing or purchasing the products you sell. For a typical Shopify store, COGS ranges from 20-50% of revenue.
Is this calculator accurate?
This calculator provides an estimate based on the percentages you input. For precise numbers, use our CSV Profit Checker to analyze your actual Shopify Orders export.