Free Shopify Gross Profit Calculator
Know your real profit on every product. Use this free Shopify gross profit calculator to calculate gross profit, gross margin percentage, and optimal pricing, with all costs included.
Calculate Your Profit NowGross Profit Calculator
Calculate your gross profit and margin in real-time.
The price you sell each unit for
The cost to produce or purchase each unit
Total number of units sold (1-1000)
Understanding Your Results:
- Gross Profit: The total profit before operating expenses
- Gross Margin: Profitability as a percentage of sales
- Good Margin: >50% (Excellent), 30-50% (Good), 20-30% (Fair), <20% (Low)
Key Features of Our Shopify Gross Profit Calculator
This ecommerce gross profit calculator helps Shopify merchants understand their product-level profitability with these powerful features.
Instant Gross Profit Calculation
Enter your revenue and cost of goods sold to instantly calculate your gross profit in dollars. No complex formulas needed, get your exact profit amount in one click.
Gross Margin Percentage
See your gross profit margin as a percentage of revenue. Compare your margin against the 41% ecommerce average to know if your products are priced competitively.
Markup vs Margin Clarity
View both your markup percentage (based on cost) and margin percentage (based on revenue). Understanding this difference prevents costly pricing mistakes.
Per-Unit Profit Breakdown
Calculate profit per unit sold. This helps you identify which products contribute most to your bottom line and which ones need repricing.
Performance Rating System
Get an instant performance rating based on your gross margin: Below Average (<30%), Average (30-40%), Good (40-50%), or Excellent (50%+).
Works on Any Device
Calculate gross profit from your desktop, tablet, or phone. Make pricing decisions anytime, anywhere, no downloads or signups required. description here.
How to Calculate Gross Profit for Your Shopify Store
Follow these three simple steps to calculate gross profit for your Shopify products using our free calculator.
Enter Your Revenue
Input your total sales revenue or selling price per unit. You can find this in Shopify Admin under Analytics → Reports → Sales. This is your starting point before any costs are deducted.
Add Your COGS
Enter your cost of goods sold (COGS). This includes product cost, materials, manufacturing, and any direct costs to create or acquire your products. Find this in your Shopify product settings under “Cost per item.”
See Your Gross Profit
Click calculate to instantly see your gross profit in dollars, gross margin percentage, markup rate, and performance rating. Use these insights to optimize your pricing strategy.
Pros and Cons of This Shopify Gross Profit Calculator
We believe in transparency. Here is what our gross profit calculator does well and where it has limitations.
Pros
- ✓Industry Benchmarks Included
See how your gross margin compares to the ecommerce average of 41%. Know instantly if your products are underpriced or competitively positioned.
- ✓Markup & Margin Together
View both metrics side-by-side. A 100% markup only equals 50% margin, this calculator shows both so you never confuse them again.
- ✓Instant Results
Click “Calculate” and get your gross profit immediately. No waiting, no page reloads, and no processing time needed.
- ✓Per-Unit Insights
See profit per unit sold. This helps you compare products and identify your most profitable SKUs at a glance.
Cons
- ✗Gross Profit Only
Calculates one product at a time. For bulk product analysis, you’ll need spreadsheet software or dedicated tools.
- ✗Manual Data Entry
Does not integrate directly with Shopify. You’ll need to manually enter revenue and COGS from your dashboard.
- ✗No Data Saving
Your calculations aren’t saved between sessions. You’ll need to re-enter values each time you visit.
- ✗Single Product Focus
Best for per-product or single-period calculations. For store-wide profit analysis, consider a dedicated analytics app.
What is Gross Profit and Why Does It Matter for Shopify Stores?
Gross profit is the money your Shopify store keeps after subtracting the cost of goods sold (COGS) from your revenue. It’s the first measure of profitability and tells you whether your products are priced correctly at the most basic level.
Why does gross profit matter? Because it reveals whether you can cover your other business expenses. If your gross margin is too low, you won’t have enough money left for shipping, marketing, Shopify fees, and operating costs—even if your sales are strong.
According to industry data, the average ecommerce gross profit margin is approximately 41%, though this varies by category: – Beauty & Cosmetics: 50-70% – Fashion & Apparel: 45-60% – Home & Garden: 40-50% – Electronics: 15-25% – Food & Beverage: 25-40%
If your gross margin falls below 30%, you may struggle to achieve profitability after accounting for all other expenses. This Shopify gross profit calculator helps you quickly check if your products hit healthy margin targets.
GROSS PROFIT FORMULA
Example Calculation
Frequently Asked Questions About Gross Profit Calculations
Find answers to common questions Shopify merchants have about calculating and improving gross profit.
Q: What is a good gross profit margin for a Shopify store?
A: A good gross profit margin for ecommerce is between 40% and 50%. The industry average is approximately 41%. Beauty and fashion brands often achieve 50-70%, while electronics typically see 15-25%. Use our Shopify gross profit calculator to check your margins against these benchmarks.
Q: How do I calculate gross profit for my Shopify store?
A: Subtract your cost of goods sold (COGS) from your revenue. The formula is: Gross Profit = Revenue – COGS. For gross margin percentage, use: (Gross Profit ÷ Revenue) × 100. Our free gross profit calculator does this instantly.
Q: What’s the difference between gross profit and net profit?
A: Gross profit is revenue minus only your product costs (COGS). Net profit is revenue minus ALL expenses including shipping, marketing, Shopify fees, and operating costs. Gross margin averages 41% while net margin averages just 10% in ecommerce.
Q: What costs should I include in COGS?
A: COGS includes: product purchase price, raw materials, manufacturing costs, inbound shipping/freight, packaging materials, and direct labor to create products. It does NOT include marketing, outbound shipping to customers, or overhead expenses.
Q: Why is my gross profit high but net profit low?
A: This means your products are priced well, but your operating expenses are eating into profit. Common culprits include high advertising costs, expensive shipping, excessive app subscriptions, or inefficient operations. Focus on reducing these variable costs.
Q: How do I find COGS in Shopify?
A: In Shopify Admin, go to Products → select a product → scroll to “Cost per item” field. For reports, go to Analytics → Reports → Profit reports → Gross profit by product. Ensure you’ve entered cost per item for all products.
Q: Is this Shopify gross profit calculator free?
A: Yes, this gross profit calculator is 100% free with no hidden costs. No signup or email required. Calculate gross profit for as many products as you need.
Q: What’s the difference between markup and margin?
A: Markup is calculated as a percentage of cost: ((Price – Cost) ÷ Cost) × 100. Margin is calculated as a percentage of price: ((Price – Cost) ÷ Price) × 100. A 100% markup equals only 50% margin. Our calculator shows both.
