Shopify Product Pricing & Profit Calculator
Most pricing mistakes come from the same place: picking a price by adding a percentage to what the product cost, then discovering that payment fees, Shopify's cut and shipping have quietly eaten the margin you thought you had.
The catch is that fees are charged on the price you sell at, not the price you paid — so raising your price raises your fees too. Work it out by hand and you end up going in circles. This calculator solves for the price directly: enter your costs, your fee rate and the margin you actually want to keep, and it tells you what to charge.
What one unit costs you to make or buy in.
Per order, if you cover it. Enter 0 if the customer pays.
Percentage taken per sale. Most gateways also add a small fixed fee (often about 30¢) that this doesn't include.
Profit as a share of the selling price — the retail convention, not markup on cost.
Suggested retail price
$27.38
Break even at $17.51 — below that you lose money on the sale. That’s a 56.4% markup on your $17.00 of costs.
Profit per sale
$9.58
Total fees taken
$0.79
- Product cost
- 12.00
- Shipping
- 5.00
- Fees
- 0.79
- Your profit
- 9.58
How to price a product so the margin survives the fees
Start with what the unit truly costs you — the landed cost, including what you paid to get it into your hands, not just the invoice from the supplier. Add the shipping you absorb per order; if the customer pays shipping in full, leave it at zero.
Then set the margin you want to keep. Margin here means profit as a share of the selling price, which is what retail and Shopify's own reporting mean by the word. A 40% margin on a $30 item is $12 of profit, not a 40% markup on cost. The calculator reports the equivalent markup underneath, because plenty of sellers think in those terms instead.
The suggested price is the point where, after the percentage fee is taken and your costs are covered, the profit left is exactly the margin you asked for. The break-even figure below it is the price at which you make nothing at all — useful as a floor when you are planning a sale or a bundle.
What a Shopify fees calculator has to account for
Two separate charges get bundled together in most sellers' heads. The first is the payment processing rate on each online card sale — roughly 2.5% to 2.9% in the US depending on your Shopify plan, plus a small fixed amount per transaction. The second only applies if you use a third-party payment gateway instead of Shopify Payments: Shopify then adds its own transaction fee, around 0.5% to 2% depending on the plan.
If you use a third-party gateway, add the two together for the figure to enter above — that is why the presets go up to 4.9%. Rates vary by country, plan and payment method, so check your own Shopify billing page rather than trusting a round number, and treat the result here as a close estimate rather than an invoice.
This calculator models the percentage portion only. The fixed per-transaction fee is a flat amount rather than a share of the price, so on low-value items it hurts proportionally more than the percentage does — worth adding by hand to your cost figure if you sell cheap products.
Frequently asked questions
How do I calculate the selling price from cost and margin?
Divide your total costs by one minus your margin and fee rate, expressed as decimals. For a $14 total cost, a 30% target margin and a 2.9% fee, that is 14 ÷ (1 − 0.30 − 0.029) = $20.86. Dividing rather than adding a percentage is what stops the fees eating into the margin, because the fee is charged on the final price rather than on your cost.
Is profit margin the same as markup?
No, and mixing them up is the most common pricing error. Margin is profit as a share of the price you sell at; markup is profit as a share of what the item cost you. A product costing $10 sold at $20 carries a 50% margin but a 100% markup. This calculator asks for margin and shows the equivalent markup alongside the result.
What percentage should I enter for Shopify fees?
If you use Shopify Payments, enter your plan's online card rate — around 2.9% on Basic, lower on higher plans, and different outside the US. If you use a third-party payment gateway, add Shopify's extra transaction fee for your plan on top, which is roughly 0.5% to 2%. Your Shopify billing settings show the exact rates for your store.
Why does the calculator say no price works?
Because your fee percentage and target margin together come to 100% or more of the selling price. Both are taken out of the same price, so there is nothing left for your costs no matter what you charge — every extra dollar is claimed before it becomes profit. Lower the target margin or check that you have not entered the fee as a decimal instead of a percentage.
Does this include the fixed per-transaction fee?
No. It models the percentage fee only, because that is the part which scales with your price and changes the maths. Most gateways also charge a small flat amount per order, often around 30 cents. If you sell low-priced items, add that to your product cost to keep the result accurate.
Is this pricing calculator free to use?
Yes. It is free, needs no account, and runs entirely in your browser — the numbers you type are never sent to a server or stored anywhere.
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