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Shopify Profit Margin Calculator

Work out your real profit margin on a Shopify sale after cost of goods, payment fees, shipping and ad spend. Free, instant, no signup.

Your numbers

Your margin

Revenue$50.00
Gross profit$32.00
Gross margin64.0%
Payment fee- $1.75
Net profit / unit$17.25
Net margin34.5%

You keep $17.25 on every unit after all costs.

How your profit margin is calculated

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 profit = Price − COGS − (Price × fee% + fixed fee) − Shipping − Ad cost

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.

Frequently asked questions

What is a good profit margin for a Shopify store?

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.

Does this calculator include Shopify fees?

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.

What is the difference between gross and 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.

Why is my net margin so much lower than my gross margin?

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.

Stop guessing — get your real numbers automatically

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.