Actual costs, licenses, payment methods, and development work honestly compared.
Are you looking for an ecommerce platform but aren’t sure what it really costs to run one? In this guide, we transparently compare the cost structures of Shopify Plus and Magento Open Source platforms. We’ll go over licensing fees, payment method fees, add-ons, development, and maintenance – and find out which model spends more on development and which one just uses it.
Magento and Shopify approach e-commerce from very different angles. Shopify is a more ready-made package for a quick start – but as you scale, costs can increase due to licensing and payment rates. Magento requires more initial investment, but offers freedom, control and transparent costs in the long run. If you want to build a competitive advantage and develop your store gradually on your own terms, Magento is a viable option.
When choosing an ecommerce platform, costs may appear as simple monthly fees – but in reality, the overall cost structure is multi-layered. In this article, we take an in-depth and honest look at the cost models of Shopify and Magento platforms: what you pay now, and what you pay in the long run.
Shopify operates on a monthly SaaS model. The price is determined by the package you choose (Basic, Shopify, Advanced, Plus), and you pay regardless of whether you make changes or not. There is a fee to use the platform itself, and certain features (e.g. B2B functionality) require the Shopify Plus version.
Magento Open Source is free software that you can use without any licensing fees. Development, maintenance, and hosting are separate costs, but using the platform itself costs nothing. Adobe Commerce does have a licensing fee, but it is scalable and negotiable.
In Shopify, additional features are often purchased as monthly paid apps. For example, simple product organization or customer segmentation may require a paid add-on, the cost of which is recurring monthly. Many commercial extensions are also closed – they cannot be freely modified.
In Magento, extensions can be free, one-time fee or custom. The important thing is that once the functionality is built, it remains under your control. Development is an investment, not an ongoing expense.
Magento is an open platform where you are free to choose a payment processor – such as Avarda or Klarna. Payment processes are built into the store so that the merchant owns the entire checkout, controls the appearance, logic and can integrate several different payment services in parallel. Of course, there are alternatives to ready-made and more closed Checkout solutions, such as Klarna Checkout.
-> Magento does not take a commission on payment transactions. You only pay the payment processor you have chosen and whose terms you have negotiated yourself.
In Shopify , all payments go through Shopify Checkout. Payment methods are managed through Shopify-enabled apps (such as Klarna, Paytrail, Mollie). In these situations, you have two options:
- You use Shopify Payments (Shopify’s own payment service) → lower payment commissions, no additional commission.
2. You use a third-party payment service, such as Klarna → Shopify charges an additional commission on payment transactions (usually 1% unless you have a Shopify Plus plan).
Not all payment services are directly compatible with Shopify. Avarda is a good example of this. It is not an official payment partner of Shopify, so there is no out-of-the-box support or integration.
If you want to use Avarda on Shopify, it requires a custom gateway. This means additional work, development costs, and one significant additional cost: Shopify charges an additional 1% commission on all payment transactions not processed by Shopify Payments, even for Shopify Plus customers. This 1% is the official figure, but large online stores can negotiate the amount separately in certain cases.
The Magento + Avarda combination offers full control over payment methods – and can even bring direct monetary benefits, such as kickbacks from invoice and account-type payment methods.
Summary:
Shopify limits the freedom of payment methods. Magento allows it. This is reflected both in the technical implementation and in significant cost differences on an annual basis.
| Payment method | Magento + Avarda | Magento + Klarna | Shopify + Avarda* | Shopify (Basic) + Klarna | Shopify Plus + Klarna | Shopify + Shopify Payments |
|---|---|---|---|---|---|---|
| Card payment | 1,00 % | 1,99 % | 2.00% (Avarda 1.00% + Shopify 1%) |
2,99 % | 1,99 % | 1.4% + €0.20 |
| Invoice / installment payment | €0 | 1,99 % | 1% (Avarda €0 + Shopify 1%) |
2,99 % | 1,99 % | – |
| Account (installment payment) | €0 | – | 1% (Avarda €0 + Shopify 1%) |
– | – | – |
| Bank charges | €0.25 / event | 1,99 % | €0.25 + 1% | 2,99 % | 1,99 % | – |
*Shopify + Avarda requires a custom integration because Avarda is not an official payment partner of Shopify. As a result, Shopify charges an additional 0.5-1% commission on all transactions not processed through Shopify Payments – even for Shopify Plus customers. Larger online stores may have room to negotiate the percentage.
Note! Payment percentages are based on public information and Codaone's implementation experiences (Finland, 2024). For example, Avarda's card payment commission is typically 0.5–1.0% and bank button commission is €0.20–0.35 per transaction. Klarna, on the other hand, generally applies a fixed 1.99% commission for all payment methods in Finland. In Magento stores, the payment intermediary is freely chosen, and the platform does not take a share of payment transactions.
| Payment method | Magento + Avarda | Shopify + Avarda* | Magento + Klarna | Shopify (Basic) + Klarna | Shopify Plus + Klarna | Shopify + Shopify Payments |
|---|---|---|---|---|---|---|
| Card payment (50% = €600,000) |
€6,000 (1.00%) |
€12,000 (+1% Shopify commission) |
€11,940 (1.99%) |
€17,940 (2.99%) |
€11,940 (1.99%) |
€10,800 (1.4% + €0.20 × 12,000) |
| Invoice / installment payment (30% = €360,000) |
€0 | €3,600 (+1% Shopify commission) |
€7,164 (1.99%) |
€10,764 (2.99%) |
€7,164 (1.99%) |
– |
| Bank charges (20% = €240,000) |
€3,000 (€0.25 × 12,000 transactions) |
€5,400 (+1% Shopify commission) |
€4,776 (1.99%) |
€7,176 (2.99%) |
€4,776 (1.99%) |
– |
| Total / year | €9,000 | €21,000 | €23,880 | €35,880 | €23,880 | €10,800 |
| Payment method | Magento + Avarda | Shopify + Avarda* | Magento + Klarna | Shopify (Basic) + Klarna | Shopify Plus + Klarna | Shopify + Shopify Payments |
|---|---|---|---|---|---|---|
| Card payment (50% = €500,000) |
€5,000 (1.00%) |
€10,000 (+1% Shopify commission) |
€9,950 (1.99%) |
€14,950 (2.99%) |
€9,950 (1.99%) |
€9,400 (1.4% + €0.20 × 12,000) |
| Invoice / installment payment (30% = €300,000) |
€0 | €3,000 (+1% Shopify commission) |
€5,970 (1.99%) |
€8,970 (2.99%) |
€5,970 (1.99%) |
– |
| Bank charges (20% = €200,000) |
€3,000 (€0.25 × 12,000 transactions) |
€5,000 (+1% Shopify commission) |
€3,980 (1.99%) |
€5,980 (2.99%) |
€3,980 (1.99%) |
– |
| Total / year | €8,000 | €18,000 | €19,900 | €29,900 | €19,900 | €9,400 |
With Shopify, hosting is included in the package and you can’t manage or optimize it yourself. Scalability only comes at the Plus level, and even then there are limits.
With Magento, you choose your own hosting and maintenance level. This brings freedom, but also requires expertise or a partner. Well-built hosting costs more upfront, but allows for optimized performance, capacity, and security.
💡 Codaone’s hosting model is simple and cost-effective.
Unlike scalable cloud services, where costs can skyrocket based on CPU, RAM or traffic, our model has a fixed and predictable server package. Most customers will only need one powerful server (with a test server in the background for further development), keeping the typical maintenance cost moderate. Our maintenance service (which includes hosting) is also comprehensive – it includes, among other things, user support, backups, SSL certificates & automatic site monitoring.
This provides a clear advantage over many operators, where pricing is based on complex resource calculations. This keeps the total cost over 3 years under control – without surprises.
Shopify development is often faster and cheaper in the early stages, but it comes with limitations when it comes to scalability and customization. In larger implementations, costs quickly increase to the Plus level.
With Magento, development will likely cost more initially, but it gives you full control and ownership. Every feature developed remains yours – no licensing fees or vendor lock-ins. There are no re-payments for development, and the whole thing is built in stages.
Shopify is often thought of as a ready-made solution. In reality, Shopify Plus customers are already at the stage of their business where ready-made solutions are no longer enough. Customization, integrations, and in-house development are essential in both environments – and the hourly rate for a developer is typically the same in both: around €100/h.
The sample table below illustrates how Magento Open Source and Shopify Plus compare in terms of total annual costs across different business categories. The estimate includes licenses, add-ons, development, maintenance, and payment method costs.
| Turnover | Chassis | License | Additional parts | Development | Hosting & maintenance | Payment method costs | Total / year |
|---|---|---|---|---|---|---|---|
| €1 million | Magento | €0 | €0 | €30,000 | €3,600 | €8,000 | €41,600 |
| €1 million | Shopify Plus | €30,000 | €2,400 | €12,000 | €0 | €18,000 | €62,400 |
| €3 million | Magento | €0 | €0 | €60,000 | €7,200 | €24,000 | €91,200 |
| €3 million | Shopify Plus | €30,000 | €3,600 | €20,000 | €0 | €54,000 | €107,600 |
| €7 million | Magento | €0 | €0 | €100,000 | €10,800 | €56,000 | €166,800 |
| €7 million | Shopify Plus | €30,000 | €4,800 | €35,000 | €0 | €126,000 | €195,800 |
Background of the calculation:
- Shopify Plus license: €2,500/month = €30,000/year
- Magento Open Source version in use
- App Store: Shopify stores estimated at €200–400/month per add-on
- Magento add-ons: calculated as one-time purchases or as part of development
- Development costs: Based on Codaone’s customer implementations
- Hosting: Magento €300–900/month depending on size
- Payment method costs:
- Magento: Avarda (1.00% cards, €0.25 bank buttons, €0 invoice/account)
- Shopify Plus + Avarda: same costs, but +1% Shopify commission on all transactions because Avarda does not go through Shopify Payments
- Payment method breakdown:
- Card 50%, Invoice / installment 30%, Bank buttons 20%
- 1 M€ turnover = 12,000 payment transactions per year
- 3 M€ turnover = 36,000 payment transactions per year
- 7 M€ turnover = 84,000 payment transactions per year
- Card 50%, Invoice / installment 30%, Bank buttons 20%
An online store project is not just about annual costs. A significant part of the total investment is made even before the store opens. The initial investment includes, among other things, a deployment project, visual design, technical configuration, integrations and testing.
Magento projects can have a higher initial investment than Shopify, especially if you’re looking for a fully customized look and feel and a wide range of features. Shopify, on the other hand, offers a sleek and modern look that’s easy to build on – but the customization options are more limited.
On the other hand, Magento offers full control from the start. Once features are built, they no longer incur ongoing monthly fees, as is often the case with Shopify. The development cost turns into savings – or resources that you can use for new innovations.
💬 Codaone’s note:
Magento scales cost-effectively. Once the development is done, you don’t pay for it again – unlike Shopify, where you pay for a license and payment method percentages as long as you sell.
| Turnover | Chassis | Initial cost | License / year ×3 |
Additional parts / year ×3 |
Development / year ×3 |
Hosting & maintenance / year ×3 |
Payment method costs / year ×3 |
Total 3 years |
|---|---|---|---|---|---|---|---|---|
| €1 million | Magento | €40,000 | €0 | €0 | €30,000 | €3,600 | €8,000 | €164,800 |
| €1 million | Shopify Plus | €25,000 | €30,000 | €2,400 | €12,000 | €0 | €18,000 | €212,200 |
| €3 million | Magento | €60,000 | €0 | €0 | €60,000 | €7,200 | €24,000 | €333,600 |
| €3 million | Shopify Plus | €40,000 | €30,000 | €3,600 | €20,000 | €0 | €54,000 | €362,800 |
| €7 million | Magento | €80,000 | €0 | €0 | €100,000 | €10,800 | €56,000 | €580,400 |
| €7 million | Shopify Plus | €60,000 | €30,000 | €4,800 | €35,000 | €0 | €126,000 | €647,400 |
The figures are indicative estimates based on Codaone's experience and implementations. Magento startup costs include, among others, customized layout, integrations and checkout solutions. Shopify Plus startup includes implementation, theme modifications and basic inventory transfer. In both platforms, the need for development continues even after launch – in Shopify, especially at the Plus level.
Reasons for the calculation
- Magento startup cost : Typically includes UI/UX design, configuration, platform architecture, and integrations (WMS, TMS, ERP). Scales to scale. Larger implementations also include PIM, CDP, or headless architecture.
- Shopify Plus startup cost : Lower because you use ready-made themes and components. However, in large projects, integrations are also done, and budgets increase here too.
- Hourly rate : The average implementation level on both platforms requires expert work, where the hourly rate is practically the same.
The table below illustrates how Magento Open Source and Shopify Plus compare when the online store has already been launched and no major development work is planned. At this stage, the cost structure is mainly focused on maintenance, payment method fees, and possible licenses.
💬 Codaone’s note:
This is where Magento really shows its strength. Once the development work is done, a Magento store operates with a lightweight and predictable cost structure without ongoing platform fees or reliance on third-party licenses – unlike Shopify, where license and fee percentage costs continue with sales.
| Turnover | Chassis | License / year ×3 |
Additional parts / year ×3 |
Development / year ×3 |
Hosting & maintenance / year ×3 |
Payment method costs / year ×3 |
Total 3 years |
|---|---|---|---|---|---|---|---|
| €1 million | Magento | €0 | €0 | €15,000 | €3,600 | €8,000 | €79,800 |
| €1 million | Shopify Plus | €30,000 | €2,400 | €6,000 | €0 | €18,000 | €169,200 |
| €3 million | Magento | €0 | €0 | €30,000 | €7,200 | €24,000 | €183,600 |
| €3 million | Shopify Plus | €30,000 | €3,600 | €10,000 | €0 | €54,000 | €292,800 |
| €7 million | Magento | €0 | €0 | €70,000 | €10,800 | €56,000 | €410,400 |
| €7 million | Shopify Plus | €30,000 | €4,800 | €15,000 | €0 | €126,000 | €527,400 |
The annual costs in the table are presented individually (per year), and the Total 3 yr column is calculated by multiplying all annual costs by three and adding them together. This model helps to visualize the accumulation of costs over time. The analysis does not include start-up costs.
Codaone specializes in Magento online stores and we have implemented dozens of large, sustainable and business-oriented solutions. For us, Magento is not just a technology – it is a platform on which to build a competitive advantage.
Our customers choose us when they need:
- Technical expertise that extends from architecture to usability
- A partner who manages integrations, maintenance and development
- Understanding that online shopping is not a project – but a continuous growth environment
If you want to build an online store platform that lasts beyond the campaign days – let’s discuss further.
