Work out your real profit margin on a Shopify sale after cost of goods, payment fees, shipping and ad spend. Free, instant, no signup.
You keep $17.25 on every unit after all costs.
Gross profit is your selling price minus the cost of goods. Net profit goes further and subtracts the costs that quietly eat your margin: payment processing fees, shipping and ad spend. The formula this calculator uses per unit is:
Net margin is that net profit divided by your selling price. A product can look healthy on gross margin and still lose money once every cost is counted — which is the single most common hidden profit leak on Shopify.
It varies by niche, but many healthy Shopify stores target a net margin of 10-20% after every cost. Gross margins are often 50-70%, but payment fees, shipping, returns and ad spend can cut that to single digits — which is exactly where hidden profit leaks appear.
Yes. Enter your payment processing fee — Shopify Payments is typically 2.9% + $0.30 per transaction — and the calculator subtracts it from every sale to show your true net margin.
Gross margin only subtracts the cost of goods. Net margin subtracts everything else too — payment fees, shipping and ad spend — so it reflects what you actually keep on each sale.
Because the costs between them add up: transaction fees, shipping you do not fully recover, returns and ad spend. A product with a 60% gross margin can end up in the single digits net. Profixo monitors this automatically and alerts you when a product tips into a loss.
Want this tracked automatically for every product? See how Profixo does it.
Profixo watches every product daily and emails you the moment one starts losing money. Read-only setup in minutes, 14-day free trial, no credit card.