Shopify Profit Margin Calculator — SA edition

It varies wildly by category. Fashion and beauty: 10–20% net is solid, 25%+ is excellent. Electronics and dropshipping: 5–12% is normal, anything above 15% is a unicorn. Subscriptions and digital products: 30–60%. The rule of thumb: if you’re under 8% net margin you have very little room for ad spend or returns, and you’re running a delivery service for your supplier, not a business.

Don’t panic, it’s extremely common when you actually run the numbers. Three levers: (1) raise prices — most SA stores under-price by 15–30%; (2) cut ad spend or improve targeting to lower CPA; (3) negotiate supplier costs or find better suppliers. Send us your numbers via the WhatsApp button and we’ll give you specific suggestions free.

The calculator tells you when upgrading would save money at your current volume. Quick rule: stay on Basic until you’re doing R 80k+/mo in revenue. Move to the Shopify plan at R 80k–R 300k/mo. Advanced makes sense around R 300k+/mo. Plus is for R 2.5M+/mo or when you specifically need B2B / checkout customisation. The transaction fee savings only outweigh the higher subscription at meaningful volume.

Ozow at 1.5% is technically cheapest — but it’s instant EFT only, so you’ll lose credit-card buyers who don’t want to use their bank app. Yoco, Peach and Stitch all sit at 2.95% and are the best all-rounders for credit cards (Peach adds R 1.50 per transaction). PayFast at 3.2% + R 2 has the broadest payment methods. Best practice: enable a card gateway (Yoco / Peach / Stitch) plus Ozow for instant EFT alongside it — customers self-select what they prefer. Want the full breakdown on your real numbers? Use our Payment Gateway Comparator.

Because VAT handling depends on whether you’re registered (compulsory above R 1M turnover), whether you’re charging VAT-inclusive or exclusive prices, and how your supplier invoices you. We calculate gross margin (price minus all variable + platform costs). Your accountant handles the VAT layer. Note gateway fees themselves carry 15% VAT on top of the ex-VAT rates shown — claimable if you’re registered. If you want help thinking through VAT pricing, WhatsApp us — we’ve done this for 400+ stores.

Depends on your category and brand awareness. New store with no brand: expect R 80–R 200 per sale via Meta or Google Shopping in SA. Established store with returning customers + organic traffic: R 30–R 80 blended. Pure organic / referral / WhatsApp: close to R 0 but doesn’t scale. A good target: ad cost should be no more than 25–40% of your gross margin per unit. If it’s 50%+, you’re scaling toward zero profit.

It’s a planning estimate, not a guarantee. It assumes R 10,000/mo in fixed costs beyond Shopify (apps, domain, accounting, overheads), all your unit economics stay constant, no seasonality, no bulk discounts on volume. Use it to know whether your business model is workable at your target volume. If break-even orders are way above what you can realistically sell, your unit economics need fixing before you scale.

Not in this calculator — it computes store profit, not personal income. But yes, you should think about your effective hourly rate. If you’re working 40 hrs/week for R 8k/mo in profit, that’s R 50/hr. SA developers charge R 600+/hr. Use the calculator to see if the business can support a real wage at your target volume — if not, the model needs work or it’s a side hustle.