Shopify ROI Calculator

Calculate your return on investment (ROI) for any product sold on your Shopify store. Enter your product cost and profit per unit to instantly see what percentage return you earn on every dollar you invest in inventory. ROI is one of the most important metrics for Shopify sellers evaluating whether a new product is worth adding to their catalog or scaling further.

Total cost to source one unit

After all fees and shipping deducted

How to Calculate Shopify ROI

Shopify ROI measures how efficiently your capital works on each product you sell. The formula is: ROI = (Profit Per Unit ÷ Product Cost) × 100. Unlike profit margin — which tells you what percentage of the selling price you keep — ROI tells you what percentage return you earn on your investment. A product costing $15 that generates $12 profit has an 80% ROI, meaning you earn back $0.80 for every $1.00 invested. Most successful Shopify sellers target a minimum ROI of 50% or higher, especially when factoring in advertising spend and inventory risk. Use this calculator alongside the Shopify Margin Calculator to get a complete picture of product profitability.

Frequently Asked Questions

What ROI should I target for Shopify products?

Most experienced Shopify sellers aim for 50–100%+ ROI per product. Below 30%, thin margins leave little room for paid advertising, returns, and price competition. Higher-volume, lower-margin products can work at 30–50% ROI if you have strong organic traffic.

Should I include customer acquisition cost in the ROI calculation?

Yes. If you run paid ads on Meta, Google, or TikTok, factor your average cost per conversion into the profit per unit before calculating ROI. Many Shopify sellers confuse gross ROI (before ads) with net ROI (after ads) and overestimate their true returns.

How is Shopify ROI different from profit margin?

Margin is profit as a percentage of your selling price. ROI is profit as a percentage of your cost. Both matter — use the Shopify Margin Calculator to evaluate margin, and this calculator to evaluate ROI. They tell you different things about the same product.

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