Shopify Profit Margin Calculator

Your gross margin is not your actual profit.

Calculate product-level contribution profit after shipping, packaging, payment fees, discounts, returns, ad cost, and the small costs quietly eating your margin.

Inputs

Product economics

Results

Estimated contribution profit

$14.28

This product keeps a healthy amount after the costs you entered.

  • Discounted revenue$49.00
  • Gross margin67.3%
  • Contribution margin29.1%
  • Transaction fee$1.72
  • Break-even CAC$22.28

Formula

discounted_revenue = price × (1 - discount_percent)

transaction_fee = discounted_revenue × fee_percent + fixed_fee

estimated_net_contribution_profit = revenue - COGS - shipping - packaging - fees - ads - other costs - return drag

Interpretation

Margin before costs is marketing fiction.

Gross margin is useful, but it is not the whole story. Shipping, fees, discounts, returns, and ad costs can turn a product that looks healthy into a tiny cash shredder with nice packaging.

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