While Shopify’s website builder is pretty easy and straightforward to use, their fee structure isn’t!
*Updated for 2023 price increases*
And whether you are considering using Shopify for your online store or an existing user, being able to see a full breakdown of your fees on your sales can be extremely useful.
That is why we created a calculator to help you figure out these fees and unlike other calculators, we haven’t gone into subscription costs as they are very easy to figure out.
Instead, we focused just on the fees and our calculator lets you know what you will be paying if you use Shopify Payments, PayPal and/or another payment gateway, along with the transaction fee that Shopify charges for each of the three main subscriptions that Shopify offer.
How does the Calculator Work?
We wanted it to be as easy as possible!
- Step 1: Choose whether you want to calculate monthly or yearly fees
- Step 2: Choose which payment methods you are using (select all the ones that apply)
- Step 3: If you are using a payment gateway other than Shopify Payments or PayPal, you will need to enter the percentage fee they charge (just enter the number, you don’t need to put the % symbol) and the fixed transaction fee they charge in the format of 0.30 for example
- Step 4: Enter the value of the sales and the number of sales you have/plan to get
- Step 5: Scroll down to see a breakdown of the fees and to total you will pay per package
What Fees do Shopify Charge?
As this page is about a calculator for Shopify fees, let’s take a deeper look into the fees that Shopify charges and because we are nice, we will also include PayPal’s fees here as well because most Shopify stores will offer PayPal.
1. Transaction Fees
These are the Shopify fees that trip most people up as they aren’t explained all that well (except for on EcommerceGold obviously!), so what are they?
Shopify transaction fees are fees that are charged on any payment received using a third-party payment gateway, such as as PayPal or Amazon Pay and it depends on the package you are on as to the fee you pay, with the:
- Shopify Basic package fees being 2%
- Shopify Standard package being 1%
- Shopify Advanced package being 0.5%.
These transaction fees do not apply to payments received using Shopify Payments or any offline payments such as Cash on Delivery.
2. Shopify Payments Fees
Using Shopify Payments doesn’t mean you get to process transactions for free, you are just not charged the additional transaction fee that we talked about above.
Quick fact about Shopify Payments is powered by Stripe, which is why you don’t see Stripe as a payment option in Shopify.
Now as with the transaction fee, it does depend on the package you are on as to what the fees are:
- Basic: 2.9% + 30¢ transaction fee
- Standard: 2.6% + 30¢ transaction fee
- Advanced: 2.4% + 30¢ transaction fee
So basically, the bigger the package you are on, the less you pay in fees and we will cover below the sales figures that make it more cost-effective to move to a bigger package.
3. Shopify PayPal Fees
PayPal fees on Shopify are 2.9% + 30¢, which is what they are if you are using any other ecommerce platform.
Which Shopify Package Should you Choose?
There are a few different variables to consider, such as what is the split between Shopify Payments sales and PayPal? How many transactions will there be? Are you paying monthly or annually for your package?
But to keep it simple we went with a 50/50 split in sales, with the average transaction value being $20 and paying for your package monthly as that should apply to quite a few stores and of course, we used our calculator!
- Shopify Basic: for sales up to around $130,000 a year
- Shopify Standard: for sales between $130,000 and $1 million a year
- Shopify Advanced: for sales of $1 million+ a year
Obviously, with the advanced package, there comes a point where Shopify plus becomes an option but as that is custom pricing, we haven’t included it here.
Now these are just estimates based on the parameters set above and each store’s figures will vary due to sales values and quantities sold being sold but we thought this would give a good benchmark to work from.