How is Shopify Capital repaid?

Shopify Capital is repaid automatically through your Shopify sales, making it different from a traditional business loan that requires fixed monthly installments. The repayment method depends on the type of Shopify Capital funding you receive, but the most common approach is sales-based repayment.

How repayment works

When you accept a Shopify Capital offer, Shopify sets a repayment rate, which is a fixed percentage of your store’s daily sales. Each day, Shopify automatically deducts that percentage from your sales and applies it toward your outstanding Capital balance.

For example, if your repayment rate is 10%:

• If your store generates ₹50,000 in sales today, ₹5,000 is applied to repayment.

• If your store generates ₹10,000 tomorrow, ₹1,000 is applied.

• If your store has no sales, there is generally no sales-based deduction for that day.

Because repayment is tied to revenue, payments automatically adjust with the performance of your business.

What merchants can expect

• Automatic deductions: Repayments happen automatically through Shopify, so merchants do not need to schedule manual payments for the sales-based portion.

• Flexible payment amounts: The amount repaid changes with your daily sales volume, which can make cash flow easier to manage during slower periods.

• No fixed monthly installment (for sales-based advances): Unlike many traditional loans, repayment is not usually the same amount every month.

Manual and early payments

Merchants can generally make additional manual payments through their Shopify admin if they want to reduce the balance faster. In many cases, they can also pay the remaining balance in full early.

What happens during slow sales periods?

If sales decrease, the repayment amount also decreases because it is calculated as a percentage of sales. During strong sales periods, repayments increase automatically. This means the repayment schedule is linked to business performance rather than a fixed calendar payment.

Monitoring repayment

Shopify allows merchants to track:

• Outstanding balance

• Amount already repaid

• Repayment progress

• Daily deductions

• Remaining obligation

All of this can typically be viewed directly within the Shopify admin.

Overall, Shopify Capital is primarily repaid through automatic deductions from a percentage of your Shopify sales, with the option to make manual or full payments, providing a repayment structure that adjusts with the revenue generated by your store.