What fees does Shopify charge sellers?

Shopify charges a monthly subscription fee starting at $39 for the Basic plan, plus payment processing fees of 2.9% plus $0.30 per transaction if you use Shopify Payments. If you use a third-party payment gateway like PayPal, Shopify also charges a transaction fee of 2% on the Basic plan. Use the [Shopify profit calculator](/tools/ecommerce/shopify-profit-calculator) to see total fees based on your selling price, sales volume, and plan tier.

What is a good profit margin for Shopify stores?

A healthy Shopify profit margin is 35% to 50% after all fees and costs. Below 25%, you have little cushion for returns, chargebacks, or increased ad costs. Above 50%, you have room to invest in advertising or offer discounts. If your margin is below 25%, increase your selling price, reduce product costs, or choose a different product. The calculator shows your exact margin based on your inputs.

Should I use Shopify Payments or a third-party payment gateway?

Shopify Payments has no transaction fee and offers competitive processing rates (2.9% plus $0.30 on the Basic plan). Third-party gateways like PayPal or Stripe charge their own processing fees plus a Shopify transaction fee (2% on Basic, 1% on Shopify, 0.5% on Advanced). In most cases, Shopify Payments is cheaper unless you already have a merchant account with lower rates. The [Shopify profit calculator](/tools/ecommerce/shopify-profit-calculator) shows the cost difference.

Which Shopify plan should I choose?

The Basic plan ($39/month) is best if you are just starting and have low sales volume. The Shopify plan ($105/month) is better if you sell over 50 to 100 units per month because the lower payment processing fees (2.6% plus $0.30 vs 2.9% plus $0.30) offset the higher subscription cost. Use the calculator to compare total costs on each plan based on your expected sales volume.

How do I calculate cost of goods sold (COGS) for Shopify?

COGS includes the product cost, packaging, and shipping to the customer. If you dropship, COGS is what your supplier charges. If you manufacture or private-label, COGS includes materials, labor, and shipping from the manufacturer to you, plus packaging and shipping to the customer. For example, if a product costs $15, packaging is $2, and shipping is $5, your COGS is $22. Enter this as your product cost in the calculator.

How much should I spend on ads per sale on Shopify?

Ad spend per sale depends on your product category, competition, and profit margin. A common target is 20% to 30% of the selling price. If your product sells for $50, aim for $10 to $15 in ad spend per sale. If your margin is high, you can spend more. If your margin is tight, reduce ad spend or optimize your ads to lower cost per acquisition. The [LTV:CAC calculator](/tools/ecommerce/ltv-cac-calculator) helps set ad spend targets based on customer lifetime value.

What is the breakeven price for a Shopify product?

The breakeven price is the minimum selling price at which you make zero profit after all fees and costs. It includes your product cost, Shopify fees, payment processing, shipping, and any other expenses. If competitors are selling below your breakeven price, you need to differentiate your product, reduce costs, or find a different niche. Use the calculator to find your breakeven price and compare it to the market price.

Can I make a profit dropshipping on Shopify?

Yes, but margins are tighter than private-label or handmade products. Dropshipping margins are often 20% to 35% after supplier costs, Shopify fees, and advertising. To succeed, find a niche with low competition, test multiple products to find winners, and optimize ad spend to keep customer acquisition costs low. Use the [Shopify profit calculator](/tools/ecommerce/shopify-profit-calculator) to ensure your margins support your business model.

What happens if a customer requests a refund on Shopify?

If you issue a refund, Shopify refunds the payment processing fee but not the subscription fee. You also lose the cost of goods sold and shipping if you do not require the customer to return the item. To reduce refund risk, provide clear product photos, accurate descriptions, and fast shipping. Factor a small refund rate (2% to 5% of sales) into your pricing to account for occasional returns.

How do I lower my Shopify fees?

Use Shopify Payments to avoid transaction fees. Upgrade to a higher-tier plan if your sales volume is high enough to offset the higher subscription cost with lower processing fees. Reduce product returns by improving product quality and descriptions. Increase sales volume to spread the fixed subscription cost across more sales. Use the calculator to test different scenarios and find the lowest total cost structure for your sales volume.

Shopify Profit Calculator (2026 Plans)

See monthly net after plan fees, card processing, recurring apps, and paid CAC per order, with a three-plan comparison and the Basic→Shopify upgrade break-even on Shopify Payments.

100% client-side. USD model using 2026 published plan fees, nothing is sent to a server.

Pick the plan you are on for the headline KPIs; the comparison table always shows all three tiers at your current volume and ad load.

Country / region

Saved with your inputs. Fees here are USD list pricing; region is for analytics and future localized tools.

Monthly revenue

$9,998

AOV × orders

Monthly net profit

$5,579

Net margin %

55.8%

Net ÷ revenue

Processing fees (mo.)

$350

Selected plan

Upgrading from Basic to Shopify plan saves money above $22,000/month in revenue (holding your AOV, COGS, apps, and ad spend per order constant; Shopify Payments only).

Per-order cost stack (selected plan)

Plan comparison at your volume

Same orders, AOV, COGS, ads, and apps, only the plan fee and processing rate change.

Plan	Monthly fee	Processing / order	Monthly net
BasicBest net	$39	$1.75	$5,579
Shopify	$105	$1.60	$5,543
Advanced	$399	$1.50	$5,269

Your Shopify plan (for KPI strip)

Average order value (USD)

Product cost / COGS per order

Monthly order volume

Monthly app costs (USD)

Ad spend per order (USD)

Use Shopify Payments (uncheck if you use a third-party gateway)

How does the Shopify Profit Calculator (2026 Plans) work step by step?

The [OnSumo Shopify Profit Calculator](/tools/ecommerce/shopify-profit-calculator) calculates your net profit per sale after deducting Shopify subscription fees, payment processing fees, transaction fees, cost of goods sold, and advertising costs. This shows what you actually keep from each sale. Shopify charges a monthly subscription fee (starting at $39 for the Basic plan), payment processing fees (2.9% plus $0.30 per transaction if you use Shopify Payments), and transaction fees if you use a third-party payment gateway. The calculator divides the monthly subscription across your expected sales volume and deducts all fees from your selling price. The calculation starts with your selling price, deducts the payment processing fee (2.9% plus $0.30), deducts your cost of goods sold (product cost, packaging, and shipping to the customer), subtracts advertising costs per sale, and allocates a portion of the monthly Shopify subscription fee based on your sales volume. What remains is your net profit per sale.

What does a typical Shopify Profit Calculator (2026 Plans) result look like?

A Shopify seller runs a dropshipping store and sells a product for $50. The supplier charges $20 per unit including shipping to the customer. The seller spends $10 per sale on Facebook Ads and uses Shopify Payments on the Basic plan ($39/month). Monthly sales are 50 units. Fees and costs: Payment processing: 2.9% of $50 + $0.30 = $1.75 Product cost (supplier + shipping): $20.00 Advertising cost: $10.00 Shopify subscription allocated per sale: $39 / 50 = $0.78 Total costs: $1.75 + $20.00 + $10.00 + $0.78 = $32.53 Net profit: $50 - $32.53 = $17.47 per sale Profit margin: 34.9% This is a borderline margin for a dropshipping product. If ad costs drop to $8 per sale, profit increases to $19.47 (38.9% margin). If the seller increases sales to 100 units per month, the subscription cost per sale drops to $0.39, further improving margins.

Frequently asked questions

What fees does Shopify charge sellers?
Shopify charges a monthly subscription fee starting at $39 for the Basic plan, plus payment processing fees of 2.9% plus $0.30 per transaction if you use Shopify Payments. If you use a third-party payment gateway like PayPal, Shopify also charges a transaction fee of 2% on the Basic plan. Use the [Shopify profit calculator](/tools/ecommerce/shopify-profit-calculator) to see total fees based on your selling price, sales volume, and plan tier.
What is a good profit margin for Shopify stores?
A healthy Shopify profit margin is 35% to 50% after all fees and costs. Below 25%, you have little cushion for returns, chargebacks, or increased ad costs. Above 50%, you have room to invest in advertising or offer discounts. If your margin is below 25%, increase your selling price, reduce product costs, or choose a different product. The calculator shows your exact margin based on your inputs.
Should I use Shopify Payments or a third-party payment gateway?
Shopify Payments has no transaction fee and offers competitive processing rates (2.9% plus $0.30 on the Basic plan). Third-party gateways like PayPal or Stripe charge their own processing fees plus a Shopify transaction fee (2% on Basic, 1% on Shopify, 0.5% on Advanced). In most cases, Shopify Payments is cheaper unless you already have a merchant account with lower rates. The [Shopify profit calculator](/tools/ecommerce/shopify-profit-calculator) shows the cost difference.
Which Shopify plan should I choose?
The Basic plan ($39/month) is best if you are just starting and have low sales volume. The Shopify plan ($105/month) is better if you sell over 50 to 100 units per month because the lower payment processing fees (2.6% plus $0.30 vs 2.9% plus $0.30) offset the higher subscription cost. Use the calculator to compare total costs on each plan based on your expected sales volume.
How do I calculate cost of goods sold (COGS) for Shopify?
COGS includes the product cost, packaging, and shipping to the customer. If you dropship, COGS is what your supplier charges. If you manufacture or private-label, COGS includes materials, labor, and shipping from the manufacturer to you, plus packaging and shipping to the customer. For example, if a product costs $15, packaging is $2, and shipping is $5, your COGS is $22. Enter this as your product cost in the calculator.
How much should I spend on ads per sale on Shopify?
Ad spend per sale depends on your product category, competition, and profit margin. A common target is 20% to 30% of the selling price. If your product sells for $50, aim for $10 to $15 in ad spend per sale. If your margin is high, you can spend more. If your margin is tight, reduce ad spend or optimize your ads to lower cost per acquisition. The [LTV:CAC calculator](/tools/ecommerce/ltv-cac-calculator) helps set ad spend targets based on customer lifetime value.
What is the breakeven price for a Shopify product?
The breakeven price is the minimum selling price at which you make zero profit after all fees and costs. It includes your product cost, Shopify fees, payment processing, shipping, and any other expenses. If competitors are selling below your breakeven price, you need to differentiate your product, reduce costs, or find a different niche. Use the calculator to find your breakeven price and compare it to the market price.
Can I make a profit dropshipping on Shopify?
Yes, but margins are tighter than private-label or handmade products. Dropshipping margins are often 20% to 35% after supplier costs, Shopify fees, and advertising. To succeed, find a niche with low competition, test multiple products to find winners, and optimize ad spend to keep customer acquisition costs low. Use the [Shopify profit calculator](/tools/ecommerce/shopify-profit-calculator) to ensure your margins support your business model.
What happens if a customer requests a refund on Shopify?
If you issue a refund, Shopify refunds the payment processing fee but not the subscription fee. You also lose the cost of goods sold and shipping if you do not require the customer to return the item. To reduce refund risk, provide clear product photos, accurate descriptions, and fast shipping. Factor a small refund rate (2% to 5% of sales) into your pricing to account for occasional returns.
How do I lower my Shopify fees?
Use Shopify Payments to avoid transaction fees. Upgrade to a higher-tier plan if your sales volume is high enough to offset the higher subscription cost with lower processing fees. Reduce product returns by improving product quality and descriptions. Increase sales volume to spread the fixed subscription cost across more sales. Use the calculator to test different scenarios and find the lowest total cost structure for your sales volume.