Free tool
What is left from a Shopify order?
Revenue, payment fees, refunds and ad spend on one order. The result is cash profit, not gross revenue.
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Order of deductions
Refunds reduce recognised revenue first. Payment processing is charged on the amount actually collected, so the calculator applies the percentage and fixed fee to the post-refund revenue. Product cost, shipping cost and payment fees produce the contribution; ad spend is subtracted from that to get profit per order.
The contribution line is also the break-even ad spend: spend more than that per order and the sale loses money, regardless of revenue growth.
Why revenue-based margins mislead
A 60% gross margin sounds healthy until payment fees, free shipping and acquisition cost are added. The margin output here uses the selling price as the denominator and includes all variable costs, so it answers a different question: what share of the price survives to the bank account.
Ad spend is entered per order rather than as a monthly total, because monthly spend mixes orders that convert with orders that never do. Divide total ad spend by orders received in the same period to get the number this calculator expects.
Setting a maximum cost per acquisition
Run the calculator with ad spend set to zero. Contribution is the most you can pay to acquire one order before it becomes unprofitable. Compare that with your actual cost per acquisition; the difference is the room you have to bid higher or the amount you need to cut.
If refunds are frequent, raise the refund rate rather than adding a separate return fee: the revenue reduction and the fee interaction are already modelled.
Frequently asked questions
Does it include Shopify's subscription?
No. The subscription is a fixed business cost. This calculator covers per-order economics only.
Should I enter shipping charged or shipping cost?
Enter the outbound shipping cost you pay. If you charge the customer for shipping, add that charge to the price field.
Why apply payment fees after refunds?
Most processors refund the percentage fee but not always the fixed component. Applying both to net revenue is a conservative approximation; adjust if your statement differs.
Can I compare two products?
Yes. Change one field at a time and use the contribution line as the comparison point.