Calculators / Shipping cost

Shipping cost calculator

Enter your price, product cost and what the label really costs you. See what shipping takes out of each order, and what price would cover it.

Your numbers

$
$
$
$
0 if shipping is free.
$

Per order

Shipping you absorb
Profit without shipping
Profit with shipping
Margin with shipping
Price to keep the same profit

The formulas

Shipping you absorb = label + packaging − shipping charged
Profit = price − product cost − shipping you absorb
Price to keep profit = price + shipping you absorb

Worked example

A $28 candle costs $11 to make. The label is$6.40, the box and filler $0.75, and shipping is free for the customer.

Shipping you absorb6.40 + 0.75 − 0 = $7.15
Profit without shipping28 − 11 = $17.00 (60.7%)
Profit with shipping17 − 7.15 = $9.85
Margin with shipping9.85 ÷ 28 = 35.2%
Price to keep $1728 + 7.15 = $35.15

Free shipping took 42% of the profit on this order. A single candle can rarely carry a $7 label; a free-shipping minimum of two candles would.

Three ways to pay for shipping

Build it into the price

Raise the price by the shipping you absorb and advertise free shipping. Works best when your prices are not easy to compare with a competitor selling the same item.

Charge it at checkout

Keeps the product price low, but a surprise shipping charge at checkout is one of the reasons shoppers abandon carts. Show it early on the product page.

Free over a minimum order

Customers who add a second item to reach the minimum cover the label themselves. Set the minimum just above your usual basket size.

Disclosure: MatrixInn Solutions, who make this site, also make a free shipping bar app for Shopify that shows customers how far they are from the minimum. You do not need it to use the calculator.

Read more

Formula and examples last checked October 9, 2026.

Questions people ask

Should I offer free shipping?

Shoppers like it, but somebody pays for the label. Either it goes into the product price, or it comes out of your margin, or you set a minimum order for free shipping so that bigger baskets carry it. Run your numbers here first so you know which of those you are choosing.

How do I set a free shipping threshold?

Look at your average order value and set the threshold a little above it, so customers add one more item to qualify. Then check that the gross profit on an order at the threshold still covers the label. If it does not, the threshold is too low.

Does the calculator include the label cost of returns?

No. If you pay for return shipping and returns are common in your category, add the average return cost per order (return rate × return label cost) to the packaging box.

Why compare dollar profit instead of margin?

Because shipping is a fixed amount per order, not a percentage. On a cheap item a $7 label can halve the margin; on an expensive one it barely shows. Keeping the dollar profit the same is the simplest way to make sure free shipping does not cost you.

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