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Shopify Profit Margin Calculator

Stop guessing your margins. Enter your exact Shopify plan, product costs, and ad spend to reveal your true net profit per order.

Product & Store Details

Net Profit per Order

$22.96

38.3% True Net Margin

Cost Breakdown

Shopify Transaction Fee$2.04
Product & Shipping (COGS)$20.00
Marketing & Acquisition$15.00
Total Costs$37.04

Break-Even Ad Spend Limit

To remain profitable after product, shipping, and Shopify fees, you cannot spend more than $37.96 on ads to acquire a customer.

Why Shopify Store Owners Miscalculate Profit

The biggest mistake new dropshippers and e-commerce founders make is calculating their margins purely based on Revenue - COGS. In reality, Shopify's hidden ecosystem fees eat significantly into your actual take-home pay.

When you process a $100 order on the Basic Shopify plan, you are immediately charged $3.20 in gateway fees. If you offer "Free Shipping" but it costs you $8 to ship, and you spent $25 on Facebook Ads to acquire the customer, your seemingly massive $70 profit is actually only $33.80.

How to improve your Shopify Margins

  • Upgrade your plan for volume: If you are doing over $100k/month, upgrading to Advanced Shopify lowers your transaction fee from 2.9% to 2.4%, which can save you thousands.
  • Increase AOV (Average Order Value): The fixed 30¢ transaction fee hurts low-ticket items. Selling a $5 item means 6% of your revenue vanishes instantly. Bundling products minimizes this fixed fee.
  • Track your Marketing ROI perfectly: Stop relying on Facebook Ads Manager, which often inflates ROAS. Use server-side tracking to know exactly which ads are actually converting.

Stop Bleeding Money on Bad Ads

gometrify tracks your exact ROAS by bypassing iOS 14 restrictions and ad blockers, so you can scale only the campaigns that actually generate profit.

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