Shopify Seller Tools
Shopify Product Cost Calculator
Estimate the true cost of selling a product on Shopify after product cost, inbound shipping, packaging, fulfillment, payment processing fees, ad cost, discounts, refunds, app costs, and other order-level expenses.
Product cost inputs
Enter your product cost, Shopify payment fees, fulfillment cost, ad cost, discount cost, refund allowance, app cost, and monthly order volume.
Revenue
Product and fulfillment costs
Shopify and selling costs
Results
Estimated true Shopify product cost and profit.
Estimated profit
$11.39
Sale price minus product, fulfillment, payment, ads, discount, refund, app, and other costs
Profit margin
25.3%
Estimated profit divided by sale price
Landed product cost
$17.25
Product cost plus inbound shipping and packaging
Selling costs
$16.36
Fulfillment, payment fee, ads, discounts, refunds, apps, and other costs
Total cost
$33.61
Landed product cost plus Shopify selling costs
Payment fee
$1.61
Payment rate plus fixed payment fee
ROI on landed cost
66.1%
Estimated profit divided by landed product cost
Cost share
74.7%
Total cost divided by sale price
Break-even price
$33.26
Approximate sale price needed before profit starts
20% margin price
$41.89
Approximate sale price needed for a 20% margin
30% margin price
$48.14
Approximate sale price needed for a 30% margin
Monthly profit
$1,139.50
Estimated profit multiplied by monthly orders
Monthly revenue
$4,500.00
Sale price multiplied by monthly orders
Monthly landed cost
$1,725.00
Landed product cost multiplied by monthly orders
Monthly selling costs
$1,635.50
Selling costs multiplied by monthly orders
Monthly total cost
$3,360.50
Total product cost multiplied by monthly orders
What this means
This Shopify product is estimated to produce $11.39 in profit per order with a 25.3% margin.
Landed product cost is $17.25, and total estimated cost is $33.61.
At 100 monthly orders, estimated monthly profit is $1,139.50.
Price scenario comparison
| Price | Total cost | Profit | Margin | Status |
|---|---|---|---|---|
| $25.00 | $33.03 | -$8.02 | -32.1% | Losing |
| $35.00 | $33.32 | $1.69 | 4.8% | Thin |
| $45.00 | $33.61 | $11.39 | 25.3% | Strong |
| $55.00 | $33.89 | $21.11 | 38.4% | Strong |
| $65.00 | $34.19 | $30.81 | 47.4% | Strong |
How to use this Shopify Product Cost Calculator
Enter product cost
Add product cost, inbound shipping, packaging, and fulfillment cost.
Add Shopify fees
Include payment processing rate, fixed transaction fee, and app cost per order.
Add selling costs
Include ads, discounts, refunds, and other order-level costs.
Review pricing
Compare profit, margin, break-even price, target prices, and monthly profit.
Shopify product cost breakdown
Review which cost categories are taking up the largest share of the sale price.
Product cost
$14.00
41.7% of total cost
Inbound shipping
$2.00
6.0% of total cost
Packaging cost
$1.25
3.7% of total cost
Fulfillment cost
$4.00
11.9% of total cost
Payment fee
$1.61
4.8% of total cost
Ad cost
$5.00
14.9% of total cost
Discount cost
$3.00
8.9% of total cost
Refund allowance
$1.50
4.5% of total cost
App cost
$0.75
2.2% of total cost
Other costs
$0.50
1.5% of total cost
Common Shopify product cost mistakes
- ×Only using the supplier price as the product cost.
- ×Forgetting inbound shipping, packaging, fulfillment, and payment processing fees.
- ×Ignoring ad cost, discount cost, app costs, refunds, and returns.
- ×Pricing products before checking break-even and target margin prices.
- ×Treating Shopify revenue as profit before subtracting fulfillment and marketing cost.
- ×Using the same cost assumptions after supplier, ad, app, or payment fee changes.