Profit Margin Calculator

Know Your Profits, Fuel Your Growth. Calculate your net profit margin in seconds and scale smarter.

Net Profit

Net Profit Margin

CREATED BY

Harry Chu| Founder at TrueProfit

#1 Profit Calculation on Shopify App Store

What is Net Profit?

Net profit is the total earnings your business keeps after deducting all costs, including cost of goods, operating costs, taxes, and more. It’s the ultimate indicator of profitability. Net Profit = Total Revenue - Total Costs

What is Net Profit Margin?

Net profit margin shows the percentage of your revenue that remains as profit after all costs. It’s a key metric to assess efficiency and profitability. Net Profit Margin (%) = (Net Profit ÷ Total Revenue) × 100

These metrics are crucial for understanding your business's financial health and identifying areas for growth.

What is a Healthy Profit Margin in E-Commerce?

E-commerce net profit margins typically fall into these categories:

The average net profit margin for e-commerce is about 10%. If yours is over 20%, you're ahead of most businesses—well done!

Important note: Remember, these are just averages. Your margin may vary based on your industry and business model.

Burning Questions About Net Profit. We've Got Answers!

Why TrueProfit is the best for tracking Net Profit?

TrueProfit automates accurate and real-time profit tracking so you can focus on scaling without going back and forth manual calculation or spreadsheet. With a 360-degree view of your finance, you can make profit-driven decisions with confident.

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Why TrueProfit is the best for tracking Net Profit?