Shopify profit margin calculator

[labelbyh]

Hello,

Shopify profit margin calculator numbers does not match if I manually calculate profit. Does it takes into account any other cost while calculating the profit?

Thanks,

Label By H

[BeProfit_App]

Hi Label by H - if you're looking for an easy way to calculate your profits that takes into account a broader scope of costs/expenses, check out BeProfit - Profit Tracker. It's a free app that gives you a dashboard to track and analyze your store's profits and expenses (including production, shipping, marketing costs, and more). BeProfit will help you focus your effort in order to maximize your Shopify store's profit.

[TCA50]

Hello Label By H,

Were you able to get an answer to your question? I also input my pricing into a manual formula and got different results. So I was also wondering if Shopify considers other costs when calculating the margin %

TCA50

[PublicApps]

It can be a bit tricky to calculate margins, you have to know when to subtract VAT and discounts, etc.

If you'd like to calculate how much you'll earn on an average order, or an order of specific products, you might want try the Draft Profit Margins app.

[ThomasG]

Hi,

You might want to check out Shopify's Profit Margin Calculator here: https://www.shopify.com/tools/profit-margin-calculator

In general gross margin is calculated this way: Gross Margin Formula ( In Percentage Form) = (Net Sales – COGS) * 100 / Net Sales

And when I look at it in my Shopify that pretty much matches the numbers Shopify calculates.

Hope this helps.

Thomas

[OneCommerce]

Hello @labelbyh ,

We are OneCommerce - an eCommerce Solution Platform.

In general, the profit margin calculation involves subtracting your total costs (including the cost of goods sold, shipping, and any other expenses) from your total revenue, and then dividing the result by your total revenue to get a percentage. To calculate all that cost, we have an app called TrueProfit can help you track every cost in a dashboard.

Hope this can help.

Regards,

OneCommerce team.