Shopify Profit Calculator
Estimate what your Shopify store actually made after the costs that are easy to miss in a revenue report. Enter sales, refunds, COGS, advertising, shipping and fees to calculate contribution profit and margin.
Before discounts and refunds.
What customers paid for shipping.
Tax included in retained customer payments.
Product costs for the orders sold.
What you paid carriers or fulfilment partners.
Packaging and other per-order costs.
Used only for profit per order.
- Retained revenue
- €11,500.00
- Total variable costs
- €8,800.00
- Contribution margin
- 23.5%
- Profit per order
- €15.00
Estimated contribution profit before fixed overheads and income tax.
Calculation breakdown
- Product sales
- €12,000.00
- Shipping charged
- €450.00
- Discounts
- −€600.00
- Refunds
- −€350.00
- Taxes
- −€1,900.00
- COGS
- −€3,600.00
- Actual shipping costs
- −€950.00
- Payment and transaction fees
- −€330.00
- Advertising
- −€1,800.00
- Other variable costs
- −€220.00
How to calculate Shopify profit
Retained revenue = product sales + shipping charged − discounts − refunds
Contribution profit = retained revenue − taxes − COGS − actual shipping and fulfilment costs − payment fees − advertising − other variable costs
Contribution margin is contribution profit divided by retained revenue. This is a practical operating view, not accounting net profit: fixed costs such as salaries, rent, software and income tax are not included.
What costs should a Shopify store include?
Include the product cost for every variant, advertising spend, the carrier and fulfilment costs you actually pay, packaging, payment or third-party transaction fees, refunds and other per-order costs. Keep shipping charged to the customer as revenue and actual shipping cost as an expense — netting them together hides both.
Shopify revenue versus actual profit
Revenue shows what customers paid, not what the store earned. A busy month can still be weak when discounts rise, product costs are missing, shipping is expensive or ads cost more than the order contributes. This calculator makes those deductions visible before calling the remainder profit.
Does Shopify show your actual profit?
Shopify provides useful sales, finance and gross-profit reporting. Its official profit reports calculate gross profit from net sales and recorded product cost, and products without a cost per item can be excluded. A fuller contribution-profit view still needs advertising, fulfilment, payment fees and other variable costs. See Shopify's profit report documentation for the native report definitions.
How COGS affects Shopify profitability
COGS is usually the largest direct cost. A missing cost can make a product look more profitable than it is; an outdated cost can hide a supplier increase. Record cost per item for every sold variant and review it when purchase prices change.
Shopify payment fees and profitability
Card processing and transaction fees reduce what each order contributes. Rates vary by payment setup, plan, card and market, so use the fees your store actually paid rather than a universal estimate. Refunds also need care: Shopify notes that original credit-card fees are not returned with Shopify Payments refunds.
Why product-level profitability matters
Two products can produce the same revenue and very different contribution margins. A heavier item may cost more to ship; a discounted bestseller may consume more ad spend; a high-priced product may have lower COGS. Use the contribution margin calculator to inspect one product or order at a time.
Stop calculating Shopify profit manually
A spreadsheet is useful for an estimate, but it gets harder to trust as orders, refunds and product costs change. ProfitSimple combines Shopify data with your cost assumptions to keep one clear contribution-profit view. Start with the calculator, then connect your store when you want the same answer from your real orders.
Frequently asked questions
- How do I calculate profit on Shopify?
- Start with product sales plus shipping charged, then subtract discounts, refunds, taxes, COGS, actual shipping and fulfilment costs, payment fees, advertising and other variable costs. The result is contribution profit: what the store generated before fixed overheads and income tax.
- Does Shopify calculate net profit?
- Shopify provides sales, finance and profit reports, but its core product profit reporting focuses on gross profit from net sales minus recorded product cost. Merchants still need to account for costs such as advertising, payment fees, fulfilment and other overheads to reach a fuller profit view.
- What costs should I include when calculating Shopify profit?
- Include COGS, taxes that are not yours to keep, actual shipping and fulfilment costs, packaging, payment and transaction fees, advertising, refunds and any other cost that occurs because an order happened. Fixed overheads belong in a separate net-profit view.
- How do I calculate profit margin on Shopify?
- Divide contribution profit by retained revenue and multiply by 100. Keep the definition consistent: if advertising and all other variable costs are subtracted from profit, they must also be included every time you compare margins.
- How do I track COGS on Shopify?
- Record an accurate cost per item for each product variant and keep it current. Missing costs make product profit incomplete, while one static cost may not reflect changing supplier prices. ProfitSimple flags missing product costs and lets you maintain the values used in its calculations.
- How do I know which Shopify products are actually profitable?
- Compare contribution profit and contribution margin after assigning each product its COGS and the variable costs its orders create. Products with similar revenue can produce very different profit once discounts, shipping, fees and advertising are included.
Want this calculated automatically?
ProfitSimple connects your Shopify store data with your product and operating costs, so you can see actual contribution profit without rebuilding a spreadsheet every month.
Related guides
- What Is a Good Ecommerce Profit Margin? — Understand gross margin, contribution margin and net profit — and why there isn't one “good” margin for every ecommerce brand.
- How to Calculate Your Break-even ROAS — Calculate the minimum ROAS your campaigns need based on your actual product and fulfilment economics.
- ROAS vs MER: What's the Difference? — Understand what ROAS and MER actually measure, when to use each, and why neither tells you your profit.
Related calculators
- Ecommerce Profit Calculator — your store's contribution profit for a period
- Contribution Margin Calculator — what's left per sale after variable costs
- Break-even ROAS Calculator — the ROAS you need before ads become profitable
- All free ecommerce calculators