What is a good profit margin for a Shopify brand?

Judge net margin — what's left after every cost, including ads and overhead. The bands this calculator uses: below 0% is negative, under 15% is thin, 15–25% is healthy and 25%+ is strong. Plenty of direct-to-consumer brands sit in the thin band and only feel it in a slow month. Getting to healthy is usually a pricing or product-cost decision, not an ads one.

What's the difference between markup and margin?

They describe the same sale from two directions. Markup is measured against what the product cost you; margin is measured against what the customer paid. A $30 product sold for $100 is a 233% markup and a 70% margin on price — same $70, two very different-looking numbers. Margin is the one to run the business on, because it tells you what share of each sale you actually keep.

How do I calculate marketing cost per sale?

Divide your total monthly marketing spend by the number of orders that month. For example, $5,000 ad spend ÷ 200 orders = $25 marketing cost per sale.

How accurate are these calculations?

Our calculators use industry-standard formulas and are designed for directional accuracy. Results depend on the quality of your input data. For precise financial planning, we recommend validating results with your accountant or financial team.

Is this really free? What's the catch?

Yes, completely free with no hidden costs. We offer these tools to help ecommerce brands succeed. We may occasionally share relevant insights via email if you opt in, but the tools remain free forever.

Is my data private and secure?

Your calculations run in your browser, and we don't store the numbers you type unless you choose to send them — by unlocking a benchmark, emailing yourself a report, or contributing an anonymous data point. We do record anonymous usage events, which tool was used rather than what you entered. The AI tools work differently: your store URL and the report or concepts we generate are saved so we can support you and so your share link keeps working. We never access your Shopify admin, your customer data, or any private account information.

Profit Margin Calculator

What's Your Real Profit Per Sale?

Most brands overestimate their margins. See what's actually left after product costs (COGS), shipping, fees, and ads.

Your Costs Per Order

Selling Price*

Cost of Goods Sold (COGS)*

Shipping (per order)*

Transaction Fee %*

Marketing (per order)*

Overhead (per order)

Profit Performance

27.1%

$27.10

Net Profit per Sale

Cost Breakdown

Per $1 of revenue

COGS$30.0030.0%

Shipping$5.005.0%

Transaction Fee$2.902.9%

Marketing$25.0025.0%

Overhead$10.0010.0%

Net Profit$27.1027.1%

PROFIT BREAKDOWN

Your Results

Net Profit Per Sale

$27

What's left after COGS, shipping, fees, marketing, and overhead — the dollars you actually keep on each order.

Net Margin

27.1%

Of revenue kept as profit

Gross Margin

62.1%

After COGS, shipping & fees

Markup

233.3%

Above cost

Break-Even Price

$72

Minimum price to avoid loss

Gross Profit

$62

After COGS, shipping & transaction fees

WHERE EVERY $1 OF REVENUE GOES

COGS30.0%

Shipping5.0%

Transaction Fee2.9%

Marketing25.0%

Overhead10.0%

Net Profit27.1%

INDUSTRY BENCHMARK

How you stack up

Directional ecommerce planning benchmark; compare against your own category data. Benchmarks are directional, not a guarantee; use them as a comparison point alongside your own historical data.

You vs. Industry Average

Your Net Margin

Industry Average

Ecommerce median

Unlock below to see how you compare.

NegativeThinHealthyStrong

SEE HOW YOU COMPARE

Unlock Your Industry Benchmark

See exactly where you stand vs. Shopify brands in your category.

Strong Margins - Healthy Business: Strong margins! You're operating a healthy, profitable business. Your margins give you flexibility to invest in growth.