Shopify Margin Calculator

Formula

The formula to calculate the margin (M) is:

\[ M = \frac{SP - CP}{SP} \cdot 100 \]

Where:

Shopify Margin: The profit margin a business owner makes from selling products on the Shopify platform. It is calculated by subtracting the cost of goods sold (including Shopify fees, shipping costs, and other expenses) from the selling price of the product. This margin is crucial for businesses to understand their profitability and financial health.

Let's say the selling price (SP) is $100 and the cost price (CP) is $60. Using the formula:

\[ M = \frac{100 - 60}{100} \cdot 100 \]

We get:

\[ M = 40 \% \]

So, the margin is 40%.