Shopify Profit Calculator UK 2026
Calculate Shopify store profit, margin and fees for UK merchants. Includes Shopify Basic/Grow/Advanced plan fees and payment processing rates.
Frequently Asked Questions
What are Shopify fees for UK sellers?
Shopify charges a monthly subscription plus transaction fees. The Basic plan is £19/month with a 2% transaction fee for third-party payment gateways. The Grow (Shopify) plan is £49/month with 1%, and Advanced is £259/month with 0.5%. If you use Shopify Payments (available to UK merchants), the transaction fee is waived, but Shopify Payments applies its own card processing rates of approximately 2%, 1.7%, and 1.5% respectively. All prices are ex-VAT.
Should I use Shopify Payments or a third-party payment gateway?
For most UK merchants, Shopify Payments is more cost-effective because it eliminates the additional transaction fee (0.5–2%). Shopify Payments supports major UK cards and includes fraud analysis. Third-party gateways like PayPal or Stripe can be useful if you need specific features, international payment methods, or want to reduce dependency on a single provider — but you will pay Shopify's transaction fee on top of the gateway's own fees.
How can I improve my Shopify profit margin?
Key strategies include: negotiating better supplier prices to reduce COGS; increasing average order value through upsells and bundles; reducing customer acquisition cost by focusing on organic SEO and email marketing; minimising refunds and chargebacks; upgrading your Shopify plan if the transaction fee savings outweigh the plan cost increase; and regularly auditing app subscriptions — unused Shopify apps can add hundreds of pounds per month.
What are my VAT obligations as a Shopify seller in the UK?
If your annual turnover exceeds £90,000, you must register for UK VAT, charge 20% on applicable sales, and file quarterly VAT returns with HMRC. Shopify supports VAT-inclusive pricing and can display prices including VAT to UK customers. For EU sales, you may also need to consider the EU One Stop Shop (OSS) scheme if your EU B2C sales exceed €10,000 per year. Shopify Tax can automate some compliance aspects.
Is the Basic or Grow plan better for UK Shopify sellers?
If you process under approximately £2,500 per month through third-party payment gateways, the Basic plan (£19/mo, 2% fee) may be cheaper than Grow (£49/mo, 1% fee). Above roughly £3,000/month, the 1% lower transaction fee on the Grow plan saves more than the £30 plan cost difference. If you use Shopify Payments, the transaction fee is waived on all plans, so the plan cost difference alone determines the break-even — broadly around £3,000 revenue/month for Grow to make sense on Shopify Payments.