How to use this shopify profit calculator
Shopify sellers should use this before setting product price, launching ads, or deciding whether free shipping still leaves enough margin.
Platform-specific inputs
Use Shopify-specific inputs such as Shopify Payments fees, shipping label cost, app overhead, refund rate, and ad spend. This makes the page more useful than a generic margin calculator.
Use it before launching a product, changing price, increasing ad spend, testing a new marketplace, or deciding whether a campaign can scale. The calculator is not tied to one platform, so it can be used for Shopify stores, TikTok Shop, Etsy, Amazon-style marketplaces, dropshipping offers, and direct-to-consumer products.
Why break-even ROAS matters
ROAS alone does not tell you whether a campaign is profitable. Break-even ROAS shows the minimum return on ad spend required after the product's real cost structure. If your campaign ROAS is below break-even, sales volume can still lose money.
Core formulas
- Net profit = revenue + shipping charged - product cost - shipping cost - platform fees - payment fees - return loss - tax or overhead - ad spend.
- Profit margin = net profit divided by total revenue.
- Break-even ROAS = product revenue divided by gross profit before ads.
- Maximum ad spend = gross profit before ads.
Common seller mistakes
- Calculating margin before payment fees and marketplace fees.
- Ignoring return loss when testing a product with high refund risk.
- Scaling paid ads because ROAS looks good while net profit is negative.
- Comparing products only by revenue instead of profit per unit.
What fees should Shopify sellers include?
Include product cost, shipping label cost, Shopify Payments processing fees, app or platform overhead, refunds, tax or overhead, and ad spend.
Does this Shopify calculator include Shopify Payments fees?
Yes. It has separate inputs for Shopify Payments percentage fees and fixed per-order processing fees, so you can estimate net profit more accurately.
How do I use break-even ROAS for a Shopify store?
Compare your campaign ROAS with the break-even ROAS shown by the calculator. If your campaign is below break-even, the product can lose money even when sales are increasing.
Free seller worksheet coming soon
We are preparing a downloadable profit worksheet for sellers who want to compare multiple products and ad scenarios in one place.