Method and assumptions
Use a period total rather than a single order to include monthly app costs and actual advertising spend. Enter the processing terms from your plan and payment provider.
Net profit = revenue - discounts and refunds - product cost - fulfillment - payment processing - Shopify transaction fee - apps - advertising.
Worked scenario
Build an average order using product revenue, discounts, product cost, pick-and-pack, payment processing, app or platform transaction charges, shipping income and actual shipping expense. Compare Shopify Payments with an external gateway using the same order profile so the gateway decision reflects both processing and platform charges.
How to interpret the result
This calculator is an order contribution model, not a complete store income statement. Monthly subscription, apps, theme work, staff and chargebacks should be added as period overhead or allocated with a documented rule. Shipping income should remain visible because free-shipping promotions change both conversion and order contribution.
Input reference
- Currency
- Example default: USD
- Gross sales
- Example default: 10000
- Number of orders
- Example default: 200
- Refunds and discounts
- Example default: 500
- Total product cost
- Example default: 3000
- Total fulfillment and shipping
- Example default: 1200
- Payment processing rate
- Example default: 2.9%
- Fixed processing fee per order
- Example default: 0.3
- Additional transaction fee rate
- Example default: 0%
- App and subscription costs
- Example default: 150
- Advertising spend
- Example default: 2000
Common mistakes
- Using an advertised card rate without the merchant plan or region.
- Omitting external gateway transaction charges.
- Treating subscription and app cost as zero in a net-profit decision.
Before using the result
- Use an average order profile from a consistent period.
- Separate variable order cost from monthly overhead.
- Reconcile processing rates with a payout report.
Questions to check before deciding
Should gross sales include sales tax?
For a management margin view, exclude taxes collected on behalf of authorities. Use the same accounting basis across every input.
What is the additional transaction fee?
Some plans charge an additional Shopify fee when using an external payment provider. Enter zero when it does not apply.
Independent calculator. Not affiliated with or endorsed by the platforms mentioned.