What is the Shopify external gateway fee?

If you process payments through any gateway other than Shopify Payments (for example PayPal, Stripe direct, Authorize.net), Shopify charges a penalty of 2% on Basic, 1% on Shopify plan, and 0.5% on Advanced. This is on top of what your external gateway charges you. Shopify Payments is the way to avoid it.

When should I upgrade from Basic to Shopify plan?

Break-even is usually around $15K to $20K in monthly revenue. The Shopify plan costs $66 more per month but saves you 0.2% on processing plus 1% on external gateway transactions. If your monthly revenue times 0.2% (or times 1% if external) exceeds the upgrade cost, upgrade. Also upgrade when you need Shopify's professional reports, which unlock on the Shopify plan.

Does this include PayPal and Shop Pay fees?

Shop Pay runs through Shopify Payments, so the processing rate is identical. PayPal charges its own rate (usually 2.89% + $0.49 for standard PayPal checkout). If you enable PayPal alongside Shopify Payments, Shopify does not charge the external gateway penalty on those specific transactions. This calculator uses the Shopify Payments rate because it is the most common setup.

Do I get charged the $0.30 on every order or only some?

Every online credit card transaction. The $0.30 flat fee is a big hit on low-AOV sales. On a $15 order, that $0.30 plus 2.9% is almost 4.9% in processing. Raise AOV with bundles or a free-shipping threshold to dilute the fixed component.

Profit & Pricing · Free Tool

Shopify Fee Calculator

Shopify's fee story is simple on the surface and sneaky underneath. Use Shopify Payments and you pay processing only. Use an external gateway and Shopify adds a penalty fee on top. Enter your order and see the real damage.

Net = Order − Processing − External gateway penalty

Order value ($)

Shopify plan

Using Shopify Payments?

From MagicFit

Lower fees. Better margins. More ads you can actually run.

Every point you save on fees is a point you can put into ads. MagicFit helps you get more out of every ad dollar by generating UGC-style video that outperforms static creative on Reels and TikTok.

Try MagicFit Free →

How to use this Shopify Fee Calculator

Shopify charges two fee types on a sale. First, payment processing, which runs 2.9% + $0.30 on Basic, 2.7% + $0.30 on Shopify, and 2.5% + $0.30 on Advanced. Second, if you use any payment gateway other than Shopify Payments (for example PayPal, Stripe direct, or Authorize.net), Shopify adds a penalty fee of 2% on Basic, 1% on Shopify, and 0.5% on Advanced. That penalty is on top of whatever your external gateway charges, which is why staying on Shopify Payments is almost always the right move if it is available in your country.

The math flips at volume. On Basic with $50K a month in revenue, you pay roughly $1,850 in processing if you use Shopify Payments. Add the external gateway penalty and you pay another $1,000 on top. At that point, upgrading to Shopify plan for $105 a month saves you 0.2% on processing and drops the penalty to 1%, which often pays for the plan several times over. Run the numbers against your monthly volume before you assume Basic is the cheapest plan.

Fee planning matters most when you are setting break-even ROAS. Shopify fees plus carrier shipping plus COGS is your true cost per order. Everything above that is gross profit. Miss a cost and you scale ads into a hole.

Frequently Asked Questions

Shopify charges a monthly plan fee ($39 Basic, $105 Shopify, $399 Advanced), payment processing (2.9%, 2.7%, or 2.5% plus $0.30 per transaction depending on plan), and a 2%, 1%, or 0.5% penalty per sale if you use an external payment gateway instead of Shopify Payments. Apps and themes can add more.

This Is What Winning Ads Look Like

Video and static creatives built for performance, across every format, style, and platform.

Workout Haul

UGC · Apparel

Glow Routine

UGC · Skincare

First-Sip Review

UGC · Beverage

40,000+

brands using MagicFit

4.2×

average ROAS lift

510%

engagement increase

85%

time saved on content

Powering creatives for fast-growing brands worldwide

True ClassicVape SuperstoreRoad iDAlphaFitSolaraForteKovaDRVN

Ready to put those saved fees into better ads?

Join 40,000+ brands creating scroll-stopping content in minutes.

Start with Free Credits

No credit card required · 40,000+ brands inside