How to calculate profit per order on Shopify
Shopify shows you revenue, but revenue isn't profit. Every order carries product cost, shipping, packaging, payment fees, a share of refunds and the ad spend it took to win it. This calculator subtracts them in order, so you can see exactly where the money goes and which cost is hurting most.
Worked example
A store sells an $85 order with a 10% average discount and charges $4 shipping. The product costs $26, the shipping label $9 and packing $3. On Shopify Basic with Shopify Payments it pays 2.9% + 30¢, and refunds 6% of orders. It spends $9,000 a month on ads to get 600 orders, so each order costs $15 to acquire. After a share of its $39 plan and $350 of apps, it keeps about $21 per order, roughly 28% of its net revenue, or about $12,700 a month.
CM1, CM2 and CM3 explained
Contribution margin is split into three levels so you can see where profit leaks out:
- CM1 (product margin) tells you whether your pricing and supplier costs work.
- CM2 (after fulfilment) shows the effect of shipping, packaging, fees and refunds. It's also the most you can spend on ads to win an order and still break even.
- CM3 (after marketing) is what's left to pay for your team, rent and profit. If CM3 is negative, growing with ads makes losses bigger, not smaller.
Shopify fees in 2026
| Plan | Monthly price | Online card rate (Shopify Payments) | Extra fee with a third-party gateway |
|---|---|---|---|
| Basic | $39 | 2.9% + 30¢ | 2.0% |
| Grow | $105 | 2.7% + 30¢ | 1.0% |
| Advanced | $399 | 2.5% + 30¢ | 0.6% |
| Plus | From $2,300 | Negotiated | 0.2% |
US rates on monthly billing, as published for 2026. Check Shopify's pricing page for your country and current rates.
How to improve your profit per order
- Raise average order value with bundles, “frequently bought together” and a free-shipping threshold set just above your current average order.
- Discount less, and smarter. Swap sitewide percentage codes for gifts with purchase or tiered offers that protect margin.
- Lift your conversion rate. A better product page and checkout lowers your ad cost per order without cutting spend.
- Negotiate shipping and packaging, and right-size boxes to avoid dimensional weight charges.
- Cut refunds with sizing guides, better photos and clearer product descriptions.
- Check your plan. At higher volumes, the lower card rates on Grow or Advanced can more than pay for the plan.
Frequently asked questions
Does Shopify show profit per order?
Shopify's reports can show gross profit when you enter product costs, but they don't include ad spend, fulfilment and app costs. That's why many stores calculate profit per order separately, as this tool does.
Should I include ad spend in profit per order?
Yes. Ad spend is usually the biggest variable cost for a growing store. Divide monthly ad spend by monthly orders to get a blended ad cost per order, which is what CM3 uses.
How do refunds affect profit?
This calculator assumes refunded items are restocked and resold, so you lose the revenue but recover the product. Shipping, packing and payment fees on refunded orders are still lost. If refunded items can't be resold, raise your refund rate to reflect that.
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Book a free strategy callShopify fee figures: published 2026 US rates (Basic, Grow, Advanced; Plus negotiated), compiled from Shopify pricing coverage. Estimates only; your results will vary.