Shopify profit calculator guide
Shopify profit calculator for Australian ecommerce stores
Use this free Shopify profit calculator to model whether your store can scale paid ads profitably. It combines product margin, Shopify Payments fees, shipping, returns, conversion rate, ad spend, ROAS, MER, CAC, repeat purchase rate and LTV into one practical ecommerce forecast.
What the calculator answers
- What ROAS do you need to break even?
- How much profit is left after product costs, shipping, fees and ad spend?
- What is your maximum CAC before first-order profit disappears?
- How does LTV change your true CAC ceiling?
- How much ad spend can the store absorb over 12 months?
Best for
- Shopify founders planning Meta, Google or TikTok ad budgets
- Australian ecommerce stores modelling AUD fees and GST
- Agencies preparing forecasts for paid media retainers
- Operators comparing ROAS, MER and contribution margin
- Brands deciding whether to scale, hold or fix unit economics first
Core ecommerce profit formulas
The calculator is built around contribution profit, not vanity revenue. These are the formulas behind the main outputs:
| Metric | Formula | Why it matters |
|---|---|---|
| Contribution per order | AOV - COGS - shipping - pick/pack - payment fees - returns | Shows the cash available to pay for ads and overheads. |
| Contribution margin | Contribution per order / AOV | The cleaner margin number to use before scaling spend. |
| Break-even ROAS | 1 / contribution margin | The ROAS where ad spend consumes all order-level profit. |
| MER | Total revenue / total ad spend | A channel-agnostic view of marketing efficiency. |
| Max CAC | First-order contribution + future contribution from repeat orders | The acquisition cost ceiling before customers become unprofitable. |
| LTV:CAC | Customer lifetime contribution / CAC | A quick signal for whether acquisition is healthy. |
Shopify Australia fees used in the model
For Australian stores using Shopify Payments, the calculator models online card rates in AUD. Use Custom fees if your effective rate differs, and keep inputs on a consistent GST basis. Rates can change, so check the official Shopify Australia pricing page before making finance decisions.
| Shopify plan | Online standard card rate | Third-party transaction fee |
|---|---|---|
| Basic | 1.7% + 30¢ AUD | 2% |
| Grow | 1.55% + 30¢ AUD | 1% |
| Advanced | 1.35% + 30¢ AUD | 0.6% |
| Plus | From 1.2% + 30¢ AUD | 0.2% |
Reviewed October 2026. The calculator is a planning tool, not accounting advice.
How to use the Shopify calculator results
- Start with true unit economics. Enter AOV, product cost, shipping, fulfilment, returns, discounts and payment fees before touching ad spend.
- Find break-even ROAS. If your platform ROAS target is below break-even, scaling ads will create revenue and destroy profit.
- Use MER as the board-level metric. Platform ROAS can over-credit campaigns. MER shows whether total revenue supports total media spend.
- Set a CAC ceiling from contribution, not revenue. First-order profit tells you what you can afford today; LTV tells you what you can afford if retention is real.
- Forecast the next 12 months. Increase spend, reduce ROAS at higher scale, add repeat orders and check whether cash flow survives the growth plan.
How do you calculate break-even ROAS?
Break-even ROAS is calculated by dividing 1 by your contribution margin. If your product has a 40% contribution margin after COGS, shipping and Shopify fees, your break-even ROAS is 1 ÷ 0.40 = 2.5x. Any campaign returning less than 2.5x revenue per dollar spent loses money on the first order.
| Contribution margin | Break-even ROAS |
|---|---|
| 25% | 4.0x |
| 30% | 3.3x |
| 40% | 2.5x |
| 50% | 2.0x |
| 60% | 1.67x |
| 70% | 1.43x |
The calculator works out contribution margin from the costs you enter. Compare its break-even ROAS with ad reports that use the same revenue and GST basis.
First-order vs LTV-adjusted break-even ROAS
First-order break-even ROAS assumes a customer only ever buys once. If customers come back, your true ceiling is lower: LTV-adjusted break-even ROAS = 1 ÷ (contribution margin × (1 + repeat orders per customer)). A store with a 50% margin and 0.5 repeat orders per customer breaks even at 1.33x instead of 2.0x.
That is why running ads below first-order break-even can be rational, but only when your repeat rate genuinely supports it. The calculator computes both numbers from your repeat-purchase input, so the decision is made with arithmetic instead of optimism.
Worked example: an $80 AOV Australian skincare brand
Here is an illustrative order using revenue excluding 10% GST and the entered product, shipping and payment costs. The example keeps the full payment fee as a cost, before any GST credit.
| Line | Amount |
|---|---|
| AOV (GST-inclusive) | A$80.00 |
| Revenue net of 10% GST (÷ 1.1) | A$72.73 |
| Product cost (COGS) | − A$24.00 |
| Shipping and fulfilment | − A$9.50 |
| Shopify Basic payment fee (1.7% + 30¢, GST included) | − A$1.66 |
| Contribution per order | A$37.57 |
| Contribution margin (of ex-GST revenue) | 51.7% |
| Break-even ROAS on ex-GST revenue | 1.94x |
| Break-even ROAS on GST-inclusive conversion value | 2.13x |
| Max first-order CAC | A$37.57 |
| Max CAC with repeats (0.35 repeat orders/customer) | ≈ A$50.72 |
Match the break-even target to the conversion value your account actually reports. In this example, use 2.13x if that value includes 10% GST, or 1.94x if it excludes GST. Check your tracking settings before comparing the figures.
What does Shopify actually take per sale in Australia?
In Australia, Shopify takes 1.7% + A$0.30 per domestic card sale on the Basic plan (1.55% on Grow, 1.35% on Advanced), and 10% GST is already included in that fee. On a A$100 sale that is A$2.00 including GST, leaving a net payout of A$98.00, verified against shopify.com/au/pricing and Shopify's Australian tax reporting help page, October 2026.
If you are GST-registered, the GST on that fee comes back as an input tax credit, so the true cost is A$1.82. Amex and international cards cost more: 2.9% / 2.8% / 2.7% + 30¢ for Amex and 3.5% / 3.4% / 3.3% + 30¢ for international cards on Basic / Grow / Advanced, worth checking before you scale international ad spend.
How does GST change your Shopify profit maths?
Yes, Shopify charges GST in Australia, but asymmetrically. Shopify adds 10% GST to subscription bills unless you add a GST-registered ABN to your store. Shopify Payments processing fees always include 10% GST regardless of ABN, though GST-registered merchants claim it back as an input tax credit on their BAS.
Should you model GST-inclusive or GST-exclusive prices?
Keep revenue, ROAS and costs on one consistent GST basis. If you use GST-exclusive revenue, convert the relevant inputs before entering them and adjust payment fees to the same basis. The calculator uses the values you enter; it does not add or remove GST automatically. Check whether your ad account's conversion value includes GST before comparing its ROAS with the result.
When do you have to register for GST?
Registration is mandatory once your GST turnover reaches A$75,000 in a rolling 12 months; you have 21 days to register after crossing it (ATO). Below the threshold registration is optional, but registering lets you claim GST credits on your inputs, including ad spend and Shopify fees.
Can you claim GST back on Meta ads and Shopify fees?
Use the GST shown on each supplier's tax invoice. Eligible GST-registered businesses can generally claim credits for GST included in business purchases; an invoice without GST has no GST amount to claim. Check the ATO guidance on GST credits and confirm your position with your accountant.
Shopify Payments vs PayPal vs Afterpay: which fees hurt most?
| Gateway | Fee per domestic transaction | Extra Shopify surcharge? |
|---|---|---|
| Shopify Payments (Basic) | 1.7% + A$0.30 | None |
| PayPal (standard) | 2.90% + A$0.30 | 2% / 1% / 0.6% by plan* |
| PayPal Advanced Card Payments | 1.50% + A$0.30 | 2% / 1% / 0.6% by plan* |
| Afterpay | ≈ 4 to 6% + A$0.30 | 2% / 1% / 0.6% by plan* |
*Shopify's third-party payment provider fee (2% Basic, 1% Grow, 0.6% Advanced) is waived when Shopify Payments is your primary gateway. Rates verified October 2026 against Shopify's pricing page and PayPal's Australian fee page.
Buy-now-pay-later is the quiet margin killer: a 5% Afterpay commission on a store otherwise paying 1.7% nearly triples the payment line on those orders. If a large share of your checkout is BNPL, model your blended payment rate; the calculator's payment-fee input takes whatever blend you actually run.
Should you upgrade your Shopify plan to save on fees?
There is a clean crossover point: Grow costs A$93/month more than Basic but saves 0.15% on every card sale, so it pays for itself above roughly A$62,000/month in card revenue. Advanced costs A$426/month more than Grow and saves a further 0.2%, breaking even around A$213,000/month. Below those lines, the cheaper plan wins on fees alone; upgrade for features, not rates.
MER vs ROAS: which should you track?
MER (marketing efficiency ratio) is total revenue divided by total ad spend across every channel. Platform ROAS relies on each platform's own attribution, which routinely over-credits itself; Meta and Google can both claim the same sale. MER can't be gamed that way, which is why it belongs in your board reporting while ROAS stays at campaign level.
Compare MER with your own margin, fixed costs and revenue mix over the same period. The calculator reports MER alongside ROAS so you can assess overall efficiency and paid acquisition together.
Set targets from your own unit economics
Start with your contribution margin and break-even ROAS, then allow for overheads and the profit you need. Use your own conversion rate, return rate and repeat-purchase history from a consistent reporting period. The calculator compares the scenarios you enter; its example presets are starting values, not industry benchmarks.
Why fixed costs stay out of break-even ROAS
Break-even ROAS is a per-order number, so it only contains costs that scale with each order: product, shipping, payment fees, returns. Your Shopify subscription, apps and agency retainer don't belong in it; stuffing them in makes every campaign look unprofitable and leads to underspending. Fixed costs re-enter the picture at the account level, through MER and the monthly profit line, which is exactly where the calculator applies them.
How the 12-month forecast works
Most ecommerce forecasts are a straight line drawn through hope. This one models the three forces that actually shape year one: your ad spend ramping month on month, your ROAS softening as you scale into colder audiences (you choose how hard the drag is), and repeat customers stacking; every month's new customers keep buying across the following twelve. That is why the profit curve bends instead of climbing forever, and why the forecast shows your efficient ceiling instead of flattering you.
How this compares to other profit calculators
| Feature | This calculator | Shopify's official tool | Typical BEROAS tools |
|---|---|---|---|
| Shopify AU payment fee presets | Yes | No | No |
| Break-even ROAS | Yes | No | Yes |
| MER and max CAC | Yes | No | No |
| LTV-adjusted break-even | Yes | No | No |
| 12-month forecast | Yes | No | No |
| Free, no signup | Yes | Yes | Varies |
Shopify's official calculator is a simple margin/markup tool: no fees, no tax, no ad economics. Most break-even ROAS calculators stop at the one formula. This page combines Australian payment fee presets, ROAS, MER, LTV and forecasting in one place, which is the whole point.
Built and maintained by Hey Sage, an Australian ecommerce advertising agency. All Shopify Australia rates on this page verified against shopify.com/au/pricing in October 2026. Last updated 31 October 2026. This page is general information, not tax or financial advice.
Shopify profit calculator FAQ
How much does Shopify take per sale in Australia?
With Shopify Payments, 1.7% + A$0.30 per domestic card sale on Basic, 1.55% + A$0.30 on Grow and 1.35% + A$0.30 on Advanced, with 10% GST already included in the fee. On a A$100 Basic sale that is A$2.00 including GST. There is no extra Shopify transaction fee when you use Shopify Payments.
Does Shopify charge GST on its fees in Australia?
Yes, asymmetrically. Shopify adds 10% GST to your subscription unless you add a GST-registered ABN to your store. Shopify Payments processing fees always include 10% GST regardless of ABN, but GST-registered merchants can claim it back as an input tax credit on their BAS.
How much does Shopify cost per month in Australia in 2026?
Basic is A$56/month (A$42 on annual billing), Grow is A$149 (A$114) and Advanced is A$575 (A$431), all ex-GST, verified against shopify.com/au/pricing in October 2026. Plus starts at A$3,700/month.
Why is my ROAS good but I'm still not making money?
Because platform ROAS ignores your costs. It measures revenue per ad dollar, not profit; COGS, shipping, Shopify fees, GST and fixed costs all sit outside it. Compare your ROAS to your break-even ROAS and check MER; if ROAS sits below break-even, every "good" campaign is losing money.
How much will I actually receive from a $100 sale after Shopify fees?
On the Basic plan with a domestic card, A$98.00. Shopify Payments takes A$2.00 in processing fees (1.7% + A$0.30), and that fee already includes 18 cents of GST. If you are GST-registered you claim that GST back, so the effective cost is A$1.82.
Is Shopify Payments cheaper than PayPal or Afterpay in Australia?
For card payments, yes. Shopify Payments on Basic costs 1.7% + A$0.30 versus PayPal's standard 2.90% + A$0.30 and Afterpay's roughly 4 to 6% commission. Routing through a third-party gateway also triggers Shopify's surcharge: 2% on Basic, 1% on Grow, 0.6% on Advanced, which Shopify Payments avoids.
Is this Shopify profit calculator free?
Yes. It is free, runs in your browser, and does not require a login, email address or paid account.
What is break-even ROAS for Shopify?
Break-even ROAS is the ROAS where an order's contribution profit exactly covers the ad cost. If contribution margin is 50%, break-even ROAS is 2.0x. If contribution margin is 33%, break-even ROAS is about 3.0x.
What Shopify costs should I include?
Include product cost, shipping, fulfilment, packaging, returns, discounts, Shopify subscription costs, Shopify Payments fees or third-party gateway fees, apps, agency fees and ad spend.
Does the calculator work for Australian Shopify stores?
Yes. It is designed around AUD and includes Shopify Australia payment fee presets and paid media metrics. Keep all inputs on the same GST basis; the calculator does not adjust tax automatically.
What is a good ROAS for ecommerce?
A good ROAS depends on your margin. A low-margin store may need 4x or higher to make money, while a high-margin store may be profitable below 2x. Your break-even ROAS is the honest starting point.
What is MER in ecommerce?
MER, or marketing efficiency ratio, is total revenue divided by total ad spend. It is useful because it measures overall paid media efficiency instead of relying on one platform's attribution model.
What is a healthy LTV:CAC ratio?
A contribution LTV:CAC below 1:1 means acquisition costs more than the contribution returned over the modelled period. Above 1:1 leaves some contribution for overheads and profit. Your target also depends on cash flow, payback time and how reliable the repeat-purchase assumptions are.
Can this replace my accountant or financial model?
No. Use it as a planning and paid-media decision tool. For tax, bookkeeping, GST and formal financial advice, speak with an accountant.
Want the ads side checked too? Try the free Meta ads preview tool or talk to Hey Sage about scaling profitably.