Most Shopify brands overestimate their profit per order by 20-40%. Enter 6 numbers to see your true contribution margin after COGS, ad spend, returns and fulfilment.
Shopify shows gross margin. It does not show what happens after ad spend, returns, fulfilment and payment processing eat through it. A product with 65% gross margin can have a 12% contribution margin once you account for the costs Shopify never sees. This Shopify profit calculator closes that gap by including every cost that sits between your reported revenue and what you actually take home.
True contribution margin is calculated as: Revenue minus COGS, minus ad spend, minus return costs, minus shipping and fulfilment, minus payment processing fees. Divide by revenue to get the percentage. For UK DTC brands, a healthy contribution margin sits between 15% and 25%. Below 10% and you are scaling a loss. This calculator uses that formula automatically, so you can see where your margin is leaking without building a spreadsheet.
Across UK DTC Shopify brands, the median net margin sits around 8-15% after all costs. Category benchmarks vary: skincare and supplements typically run 12-20%, fashion and apparel 5-12%, and food and drink 8-14%. The number that matters most is contribution margin per order, not gross margin, because gross margin ignores the three biggest margin killers: advertising costs, returns and fulfilment. If your Shopify dashboard shows 60% margin but your bank account tells a different story, the gap is in these hidden costs.
This calculator shows you the margin on one product. The SKU Profit Dashboard shows you all of them side by side, ranked by true contribution margin, with a cost waterfall per product and specific recommendations on what to scale, reprice, or cut. Enter up to 25 SKUs and see exactly where your profit is going.
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