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Profit Margin Calculator
Work out net margin, markup, and profit per order.
Shopify profit margin calculator
This free profit margin calculator helps ecommerce and Shopify sellers work out exactly how much they keep on each sale. Enter your selling price, your product cost (COGS), and any other per-order costs (shipping, transaction fees, packaging) to see your net profit per order, your profit margin, and your markup — updated live as you type.
Profit margin = (price − total cost) ÷ price. Markup = (price − cost) ÷ cost. Margin is the better number for pricing decisions because it tells you how much of each sale survives after costs — the money you have to spend on ads and still turn a profit. Pair this with the Break-Even ROAS calculator to see how much you can spend acquiring a customer.
Frequently asked questions
How do you calculate profit margin?
Profit margin = (selling price − total cost) ÷ selling price × 100. It tells you what percentage of each sale is profit after costs.
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. A 50% markup on a $10 cost gives a $15 price and a 33% margin.
What is a good profit margin for a Shopify store?
It varies by niche, but many ecommerce brands target a 40–60% gross margin so there is enough room to cover ad spend, apps, and fees and still profit.