Formula
Shopify Payments fee is estimated as a percentage of order value plus the fixed payment fee. Third-party transaction fees are added only when Shopify Payments is not used.
profit = order value - payment fee - transaction fee - product cost - fulfillment cost - ad cost - other variable cost
FAQ
Does Shopify refund transaction fees?
Third-party transaction fees are generally not returned after a refund. Payment processing refunds can vary by provider and region.
Why include ad cost?
A fee-only estimate can look healthy while the actual order loses money after paid acquisition. Use ad cost per order to see real contribution profit.