Shopify Merchant Fee Mathematics & Plan Tier Formulas
Shopify store operating costs comprise subscription fixed overhead, order processing fees, and gateway surcharges:
1. Monthly Orders Count Formula
Orders Count =
Monthly Gross Sales Revenue ($)Average Order Value (AOV)
2. Processing & Transaction Fees Formula
Total Processing Fees = (Gross Sales × Rate %) + (Orders × $0.30) + Third-Party Surcharges
3. Net Merchant Operating Profit
Net Profit = Gross Sales - (Gross Sales × COGS %) - Plan Monthly Cost - Total Processing Fees
Step-by-Step Shopify Fee Breakdown
Step 1: Calculate Order Volume & Processing Fees
$15000 revenue ÷ $50 AOV = 300 orders. Processing fees equal $525.00.
Step 2: Account for Plan Subscription & COGS
Plan overhead ($$39.00) + COGS ($$4,500.00) = $4,539.00 total non-processing costs.
Step 3: Determine Store Net Monthly Profit
Net Take-Home=$9,936.00 / month (3.76% fee drag)
Shopify Plan Rates & Upgrade Breakeven Thresholds
| Plan Tier | Monthly Cost | Online Card Rate | 3rd-Party Gateway Fee | Optimal Volume Range |
|---|---|---|---|---|
| Basic Shopify | $39 / mo | 2.9% + $0.30 | 2.0% surcharge | Under $15,000 / month |
| Shopify Plan | $105 / mo | 2.6% + $0.30 | 1.0% surcharge | $15,000 – $110,000 / month |
| Advanced Shopify | $399 / mo | 2.4% + $0.30 | 0.6% surcharge | Over $110,000 / month |