Shopify Profit Calculator & Strategic Cost Model
Model true Shopify profitability with granular assumptions across acquisition, fulfilment, retention, and platform fees. Adjust every lever, score your margins, and export a board-ready summary.
These numbers are estimates to guide planning. Validate with your finance stack before making commitments.
Store performance inputs
Used to model CAC and marketing efficiency.
Shopify platform & team
Staff seats included: 5. Additional seats billed at your custom rate.
Use third-party payment provider
Adds +1% transaction fee on every order.
Include subscriptions like Klaviyo, reviews, loyalty, analytics, and bundling apps.
Advanced assumptions
Net profit this month
Includes Shopify platform fees, payment processing, staff overages, marketing efficiency, returns, fulfilment, and loyalty uplift. Adjust the assumptions on the left to see how the store responds.
Net profit
£2,040
Annualised: £24,482
Profit margin
8.16%
Gross margin: 58.0%
Cost per order
£68.88
Orders/mo: 333
Automation + marketing lift could push net profit to £6,056.
£1,274
Plan + processing + apps + overage seats
£21,686
COGS + marketing + fulfilment + returns
£1,841
Automation + media optimisation potential
Current Profit Health
Score42/100
Margins are sustainable with room to grow.
Marketing Efficiency
Score74/100
Efficiency unlocks room for reinvestment.
Scalability Readiness
Score86/100
Retention supports scale.
£2,040
Maintain profitability by reinvesting into lifecycle marketing and fulfilment automation.
£133
At a 32.0% loyalty rate, each customer averages 2.4 repeat orders. Set CAC targets below £39.78 to stay efficient.
0.6 months
If payback extends beyond 6 months, trim promo discounts or increase repeat purchase nudges.
£2,738
Tighten product imagery, sizing guidance, and promo rules to keep returns and incentives from eroding margin.
Scenario planner & KPI watchlist
Automation savings: £1,301 (with 6.00% ops efficiency)
Marketing optimisation: £540 (12.0% lift)
Growth revenue upside: £3,750 topline
Potential profit after improvements: £6,056
- Keep cost per order below £26.25 to preserve cashflow.
- Track CAC (£3.83) against LTV (£133) for a 3x ratio target.
- Returns + discounts (£2,738) should stay under 15% of revenue.
1,176
Based on traffic + conversion rate
126
Lower indicates efficient funnel
23
Tune sizing, QA, and description detail
Cost breakdown & strategic focus
Platform cost stack
- Shopify plan: £65.00
- Transaction fees: £250
- Payment processing: £675
- Staff seat overage: £9.00
- Apps budget: £275
Operations cost stack
- Product costs: £10,500
- Marketing spend: £4,500
- Discounts & promos: £1,250
- Fulfilment: £1,867
- Returns & handling: £1,569
- Operations overhead: £2,000
Where profitable stores win
Combine strong creative testing (to reduce CAC) with post-purchase journeys that lift repeat frequency. Align promo strategy with gross margin guardrails and reinvest savings from automation into retention and product development.
Benchmarks to aim for
- Keep marketing + discounts under 25% of revenue combined.
- Hold return rate below 8% for general merchandise, 12% for apparel.
- Target a 3x LTV:CAC ratio to sustain paid growth.
- Maintain net margin of 10-20% for healthy cash reserves.
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Disclaimer
Figures are illustrative and use sliding-scale assumptions based on current Shopify pricing, industry benchmark fees, and typical operational ranges. Always validate against your actual invoices, accounting data, and finance guidance. This page may contain affiliate links. Read our affiliate disclosure for details.