Calculate your gross and net profit margins. See how your business compares to industry benchmarks.
Profit margin is net profit divided by revenue, expressed as a percentage. Formula: (Revenue - Total Costs) ÷ Revenue × 100. A healthy e-commerce net margin is 10-20%. Gross margins vary: apparel (50-60%), electronics (30-40%), beauty (60-70%).
Enter your monthly revenue and costs
Total sales revenue
Product cost, shipping, packaging
Shopify fees, apps, staff, rent, etc.
Facebook, Google, TikTok ads
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)
| Industry | Gross Margin | Net Margin |
|---|---|---|
| Apparel & Fashion | 50-60% | 10-15% |
| Electronics | 30-40% | 5-10% |
| Beauty & Cosmetics | 60-70% | 15-20% |
| Home & Garden | 40-50% | 8-12% |
| Food & Beverage | 30-40% | 3-8% |
| Pet Supplies | 40-50% | 8-12% |
| Health & Wellness | 50-60% | 10-15% |
| Jewelry | 60-70% | 15-25% |
(Revenue - COGS) ÷ Revenue × 100
Measures product profitability before overhead. Target 40-60% for most e-commerce. Below 30% means your product economics need work before scaling ads.
(Revenue - All Costs) ÷ Revenue × 100
The true bottom line after COGS, opex, and ad spend. Target 10-20% for healthy e-commerce. Under 5% means you're one bad month from losing money.
Bulk ordering, alternative suppliers, and direct-from-manufacturer can cut COGS 10-30%
Bundles, upsells, and free-shipping thresholds reduce per-order fixed costs
Cut unprofitable campaigns, scale winners, and use ACOS targeting per product
Better product photos, sizing guides, and quality control prevent costly returns
Remove unused apps — the average store pays for 3+ apps they don't actively use
Fulfillment automation, email flows, and chatbots reduce staff costs per order
Test 5-10% price increases — many stores underprice and see no conversion drop
Negotiate carrier rates, use regional fulfillment, and offer calculated shipping
| Revenue Stage | Gross Margin | Net Margin | Key Challenge |
|---|---|---|---|
| $0–5K/mo (Startup) | 40–50% | -10–5% | Customer acquisition cost |
| $5–25K/mo (Growing) | 45–55% | 5–12% | Scaling ads profitably |
| $25–100K/mo (Established) | 50–60% | 10–18% | Operational efficiency |
| $100K+/mo (Scaling) | 50–65% | 12–22% | Maintaining margins at scale |
Get your profit margin breakdown emailed to you for future reference.