Understanding the true cost of running a Shopify store is crucial for your bottom line. Our Shopify fee calculator breaks down every expense—from subscription plans and credit card processing rates to third-party transaction fees—so you can accurately forecast your monthly overhead and net profit.
How Shopify Fees Work
Shopify's pricing structure can be complex because it involves multiple layers of fees. To get a clear picture of your "take-home" revenue, you need to account for three main components:
- Subscription Fees: The fixed monthly or yearly cost to use the platform.
- Credit Card Processing Fees: The cost charged by the payment provider (Shopify Payments or others) to process customer payments.
- Transaction Fees: An additional fee charged by Shopify only if you use a third-party payment gateway instead of Shopify Payments.
1. Subscription Plans
Shopify offers several tiers, each with different features and fee structures. Choosing the right plan often depends on your sales volume, as higher-tier plans offer lower transaction rates.
| Plan | Monthly Cost | Yearly Cost | Online Rate |
|---|---|---|---|
| Basic | $39 | $29/mo | 2.9% + 30¢ |
| Shopify | $105 | $79/mo | 2.6% + 30¢ |
| Advanced | $399 | $299/mo | 2.4% + 30¢ |
| Plus | ~$2,000 | Custom | ~2.15% + 30¢ |
2. Credit Card Processing Fees
Every time a customer buys something from your store using a credit card, a processing fee is deducted. This fee consists of a percentage of the sale price plus a fixed amount (usually 30 cents).
For example, on the Basic plan, if you sell an item for $100:
- Percentage Fee: $100 * 2.9% = $2.90
- Fixed Fee: $0.30
- Total Fee: $3.20
As you upgrade to higher plans, this percentage rate decreases, which can lead to significant savings for high-volume stores.
3. Transaction Fees (The "Penalty" Fee)
This is often the most misunderstood fee. If you use Shopify Payments, this fee is 0%. However, if you choose to use a third-party gateway like PayPal (without Shopify Payments enabled) or Authorize.net, Shopify charges an additional transaction fee on top of what your gateway charges.
- Basic: 2.0%
- Shopify: 1.0%
- Advanced: 0.5%
This is why most merchants stick with Shopify Payments unless they have a specific reason (like selling high-risk products) to use an external provider.
Deep Dive: Shopify vs. Competitors
When choosing an e-commerce platform, it's essential to compare Shopify's fees against its main competitors. While Shopify is the market leader, platforms like WooCommerce, BigCommerce, and Wix offer different pricing models that might suit specific business types better.
Shopify vs. WooCommerce
WooCommerce is a free plugin for WordPress, which makes it attractive for budget-conscious startups. However, "free" is a misnomer. You still need to pay for:
- Hosting: $10 - $50/month.
- SSL Certificate: Often free, but sometimes $50/year.
- Premium Themes & Plugins: Can easily add up to $200 - $500/year.
- Developer Costs: WooCommerce requires more technical maintenance than Shopify.
In contrast, Shopify is a hosted solution. You pay a premium for the convenience of not managing servers or security patches. For many business owners, the time saved is worth the monthly subscription cost.
Shopify vs. BigCommerce
BigCommerce is Shopify's closest direct competitor. Their pricing tiers are similar (Standard at $39/mo, Plus at $105/mo). The key difference is transaction fees. BigCommerce does not charge transaction fees on any plan, regardless of which payment gateway you use. However, they have annual sales limits for each plan (e.g., $50k/year for Standard). If you exceed the limit, you are automatically upgraded to the next, more expensive plan. Shopify does not have sales limits, but penalizes you with transaction fees if you don't use Shopify Payments.
Hidden Costs You Might Overlook
Beyond the headline subscription and processing fees, running a successful Shopify store involves several other costs that can eat into your margins.
1. App Subscriptions
The Shopify App Store is vast, and while many apps offer free plans, essential features often require a paid subscription. Common paid apps include:
- Email Marketing: Klaviyo or Omnisend ($20 - $100+/mo).
- Reviews: Yotpo or Judge.me ($15 - $50/mo).
- Upsells: ReConvert or OneClickUpsell ($20 - $50/mo).
- SEO Tools: various plugins ($10 - $30/mo).
It's not uncommon for a "Basic" store to spend an additional $100-$200/month on apps alone.
2. Premium Themes
While Shopify offers a few free themes, most serious brands opt for a premium theme to stand out. These cost between $180 and $350 as a one-time fee. While not a recurring monthly cost, it's a significant upfront investment.
3. Point of Sale (POS) Pro
If you have a brick-and-mortar store, the "POS Lite" is included in all plans. However, if you need advanced features like staff management, unlimited registers, and smart inventory management, you'll need POS Pro, which costs an additional $89/month per location.
When Should You Upgrade Your Plan?
One of the most common questions we get is: "When does it make financial sense to upgrade from Basic to Shopify?" The answer lies in the math of credit card rates.
The Scenario:
Basic Plan: $39/mo, 2.9% + 30¢ rate.
Shopify Plan: $105/mo, 2.6% + 30¢ rate.
The difference in monthly subscription cost is $66 ($105 - $39).
The difference in credit card rate is 0.3% (2.9% - 2.6%).
To cover the $66 extra cost with the 0.3% savings, you need to generate enough sales volume.
Break-even Point = $66 / 0.003 = $22,000.
If your monthly sales exceed $22,000, the savings from the lower transaction rate will pay for the higher subscription fee. Below that, stick with Basic. For the upgrade from "Shopify" to "Advanced" ($105 to $399), the gap is larger ($294 difference, 0.2% savings), requiring roughly $147,000 in monthly sales to break even.
How to Use This Calculator
- Select Your Plan: Choose between Basic, Shopify, Advanced, or Plus.
- Choose Billing Cycle: Toggle between Monthly and Yearly to see how the subscription cost changes.
- Enter Revenue: Input your estimated gross monthly sales.
- Set Average Order Value (AOV): This helps calculate the number of transactions, which impacts the fixed 30-cent fee.
- Select Provider: Choose "Shopify Payments" to waive transaction fees, or "Third-Party" to see the impact of the extra fee.
Pro Tips for Reducing Shopify Costs
Pay Annually
Paying for your subscription annually rather than monthly can save you significantly. For the Basic plan, the cost drops from $39/mo to $29/mo—a 25% savings instantly.
Upgrade When Volume Increases
Don't stay on the Basic plan forever. If your monthly revenue exceeds roughly $15,000 - $20,000, the savings from the lower credit card rates on the "Shopify" plan (2.6% vs 2.9%) will likely outweigh the higher subscription cost. Use our calculator to find your specific break-even point.
Use Shopify Payments
Unless you are in a restricted industry, using Shopify Payments is the easiest way to avoid the extra 0.5% - 2.0% transaction fee. It also integrates seamlessly with your dashboard for easier financial tracking.
International Selling: Currency and Duties
With Shopify Markets, selling globally is easier than ever, but it comes with additional costs that can surprise new merchants.
Currency Conversion Fees
If you sell in multiple currencies (e.g., USD store selling in EUR), Shopify charges a currency conversion fee.
- Basic & Shopify Plans: 2.0% fee per transaction.
- Advanced & Plus Plans: 1.5% fee per transaction.
This fee is applied to the final order value including shipping and taxes. If you are doing significant volume internationally, the 0.5% savings on the Advanced plan can add up quickly.
Duty and Import Taxes
Shopify can calculate and collect duties at checkout, but this feature is often gatekept behind higher tier plans or requires third-party apps like Zonos, which add another monthly subscription cost.
The Cost of Returns
A hidden "fee" that isn't charged by Shopify but effects your bottom line is returns. The average e-commerce return rate is between 20% and 30%.
When you refund a customer on Shopify, you do not get the credit card processing fee back. For example, if you refund a $100 order, you return $100 to the customer, but the ~$3.20 processing fee paid to the bank is lost forever. Account for this "return leakage" in your margins.
Related Calculators
Managing your e-commerce finances requires looking at the whole picture. Check out these related tools to help you plan better:
- PayPal Fee Calculator - Essential if you use PayPal as a payment gateway.
- eBay Fee Calculator - Compare your costs if you also sell on marketplaces.
- Amazon FBA Calculator - See if Fulfillment by Amazon is cheaper than self-shipping.
- Profit Margin Calculator - Determine your true net profit after all expenses.
- Product Cost Calculator - Calculate your COGS accurately.
Frequently Asked Questions
External Resources
For more detailed information on pricing and terms, visit these official resources: