Shopify store owners must price products to cover COGS, transaction fees, payment processing, shipping, and marketing costs. Ensure sustainable profit margins.
Optimize your pricing strategy with AI-powered insights
Enter your shop name for a personalized PDF report with your business name.
How many items do you expect to sell each month?
💡 Why needed? Fixed costs (Rent/Labor) must be split by each item. Lower sales = Higher cost per item. We need this to calculate your min break-even price.
Percentage of items that are wasted or unsold.
✅ Price is above break-even $18.35. You are making profit!
How much will you charge for one item?
Net Profit
$3325
per month
Margin
26.6%
profit margin
Break-Even
312
units/month
✓ Margin Detected: Your 26.6% profit margin is healthy for the cafe industry. You need to sell 312 units to break even, currently projecting 500 units.
Required Volume Growth ≥17% to break even
Current Expectation: 30% ✅
On your own Shopify store you keep more than a marketplace, but you pay payment processing (about 2.9% + $0.30), shipping, and — the big one — customer acquisition through ads. Price from COGS, add processing and shipping, then make sure the margin survives your ad cost per order. The classic 2–3× COGS keystone is only safe once shipping and acquisition are in the math.
If acquiring a customer costs $15 on a $40 order, a 2× markup may already be a loss. Customer acquisition is usually the biggest hidden cost on Shopify.
Free shipping is fine if it's priced into the product. Offering it without raising prices means shipping comes straight out of margin.
About 2.9% + $0.30 per order is small but constant. On low-ticket items the $0.30 fixed fee bites hardest.
2–3× COGS feels safe, but it assumes free traffic. Once ads are factored in, thin-margin products can't sustain paid acquisition.
Once your pricing works, these are the tools small operators use to take payments, keep books, and market.
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Start with COGS, add payment processing (~2.9% + $0.30) and shipping, then verify the price still clears after your ad cost per order. Many sellers use 2–3× COGS as a starting point. The calculator above folds the fees in.
Keystone is doubling (sometimes tripling) your cost of goods. It's a starting point, but only safe once you've added shipping and especially customer acquisition cost — otherwise paid traffic eats the margin.
Free shipping converts better, but the cost has to be built into the product price. Decide whether to raise prices to cover it or charge shipping separately — don't simply absorb it.
Customer acquisition is usually the largest variable cost on a Shopify store. If ads cost $15 to land a $40 sale, your real margin is far thinner than COGS suggests, so price with acquisition in mind.
After COGS, processing, shipping and ads, a healthy target is often 10–25% net. Build in enough cushion that a rise in ad costs doesn't push you into the red.
Many small business owners use the "3x material cost" rule or simply match competitor prices. The problem? This ignores your unique cost structure. Your rent might be higher, your waste rate different, or your labor costs vary by location. This calculator reveals your true break-even point and ensures sustainable pricing.
Download a clean, shareable PDF of your pricing breakdown — cost structure, break-even point, and profit scenarios — completely free, with no sign-up. Useful for partners, lenders, or your own records.