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Calculate your exact profit margin

Enter your revenue and costs to instantly see your gross profit margin. Know exactly how much you keep from every sale.

Inputs

Total revenue or price per unit
Cost of goods sold or cost per unit

Results

Profit Margin
Profit
Markup

Profit Margin Formula

Profit Margin = ((Revenue - Cost) / Revenue) × 100

Profit margin tells you what percentage of each sale is actual profit. A 40% margin means you keep €0.40 of every €1.00 in revenue. This is different from markup, which measures profit as a percentage of cost rather than revenue.

How to improve your profit margin

📦

Negotiate supplier costs

Even a 5% reduction in COGS can dramatically improve margins across your entire catalog.

💰

Optimize pricing strategy

Test higher price points on best-sellers. Many merchants underprice products with strong demand.

🚚

Reduce shipping costs

Consolidate shipments, negotiate carrier rates, or adjust free shipping thresholds to protect margins.

📊

Track COGS accurately

Many merchants forget to include packaging, transaction fees, and returns in their cost calculations.

STORELYST

Track profit margins automatically

StoreLyst calculates real-time profit margins across your entire Shopify catalog. Set COGS per product, track ad spend, and see actual profit — not just revenue — on every order.

Learn about P&L Reporting →

Frequently asked questions

What is a good profit margin for ecommerce?

Most ecommerce businesses aim for 20-50% gross profit margins. Dropshipping typically has lower margins (15-30%) while private label brands can achieve 50-70%. The ideal margin depends on your business model, competition, and volume.

What is the difference between margin and markup?

Margin is profit as a percentage of selling price (revenue). Markup is profit as a percentage of cost. A product costing €60 sold for €100 has a 40% margin but a 66.7% markup. Margin is always lower than markup for the same product.

How do I calculate profit margin for my Shopify store?

To calculate your overall store profit margin, divide total profit (revenue minus all costs including COGS, shipping, ads, and fees) by total revenue. For per-product margins, divide product profit by its selling price.

Should I use gross or net profit margin?

Gross margin (revenue minus COGS) shows product profitability. Net margin (revenue minus all costs) shows business profitability. Track both — gross margin helps with pricing decisions, net margin shows overall business health.

Stop guessing your margins

StoreLyst tracks profit margins on every product, every order, in real time.