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Shopify Profit Margin Calculator
Easily calculate your product profit margins & boost your Shopify store’s profitability. Our free Shopify Profit Margin Calculator helps you instantly figure out how much you really make on every sale, so you can price smarter and grow faster.
LLMs.txt Generator for Your Store
Enter your store URL to generate your LLMs.txt file.
Your Generated LLMs.txt File
How It Works
01
Enter your product cost & expenses
02
Enter your selling price
03
Get Results
Why Knowing Your Profit Margins Matters
It’s easy to get caught up in one metric: SALES!
Orders are coming in, your dashboard is lighting up, and revenue looks impressive — but there’s a dangerous trap here.
Sales don’t equal profit.
If you don’t understand your profit margins, you might be working harder, selling more, and yet making less money or even losing it. Profit margin is the single most important number for your business because it tells you how much you actually keep from every sale after paying all expenses.
Let’s break down why understanding your margins is critical:
Avoid Selling at a Loss
It’s easy to think, “I bought this for $15, I’m selling for $30, so I’m doubling my money.” But in reality, there are hidden costs — Shopify fees, payment processing fees, packaging, shipping, and ad spend.
Set the Right Price
If you price too low, you’ll always be chasing sales volume just to survive.
If you price too high, you might lose customers to competitors.
Plan Discounts Wisely
Sales and discounts can be powerful for boosting orders — but without margin tracking, you could wipe out profits with every order.
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Frequently Asked Questions
What is a good profit margin for a Shopify store?
For most Shopify businesses, a profit margin between 20–50% is healthy. It depends on your niche, competition, and expenses.
Does this calculator work for all currencies?
Yes, just enter your numbers in your currency, the results work anywhere.
Should I include my ad spend in costs?
Absolutely. If you run paid ads, they are a real cost and should be included to see true profit.
Why do some of my best-selling products have low margins?
High sales don’t always equal high profits. Ad costs, shipping, or supplier prices might be eating your margins.
How can I increase my Shopify store’s profit margins?
Lower costs, increase prices where possible, and improve your conversion rate so you spend less per sale.