ProfitHelm

Profit Margin Calculator

Calculate your gross and net profit margins. See how your business compares to industry benchmarks.

Your Numbers

Enter your monthly revenue and costs

$

Total sales revenue

$

Product cost, shipping, packaging

$

Shopify fees, apps, staff, rent, etc.

$

Facebook, Google, TikTok ads

Profit Analysis

Your margin breakdown

Gross Profit Margin

0.0%

Gross Profit

$0.00

Target: 40-60% for most e-commerce

Net Profit Margin

0.0%

Net Profit

$0.00

Target: 10-20% for healthy e-commerce

Cost Breakdown (% of Revenue)

COGS0.0%
Operating Expenses0.0%
Ad Spend0.0%

Industry Profit Margin Benchmarks

IndustryGross MarginNet Margin
Apparel & Fashion50-60%10-15%
Electronics30-40%5-10%
Beauty & Cosmetics60-70%15-20%
Home & Garden40-50%8-12%
Food & Beverage30-40%3-8%
Pet Supplies40-50%8-12%
Health & Wellness50-60%10-15%
Jewelry60-70%15-25%

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Frequently Asked Questions

What is a good profit margin for e-commerce?

A healthy e-commerce profit margin is typically 10-20% net margin. Gross margins vary by industry: apparel (50-60%), electronics (30-40%), beauty (60-70%). Focus on net margin as it accounts for all expenses.

What is the difference between gross and net profit margin?

Gross profit margin = (Revenue - COGS) / Revenue. It only considers product costs. Net profit margin = (Revenue - All Expenses) / Revenue. It includes COGS, operating expenses, ad spend, and all other costs.

How do I calculate profit margin for Shopify?

To calculate Shopify profit margin: 1) Add up your revenue 2) Subtract COGS (product cost, shipping, packaging) 3) Subtract operating expenses (Shopify fees, apps, staff) 4) Subtract ad spend. Divide profit by revenue for your margin percentage.

Why is my e-commerce profit margin low?

Common causes of low profit margins: high customer acquisition costs (ad spend), underpriced products, expensive suppliers, high return rates, inefficient operations, or too many discounts. Track each cost category to identify issues.

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