Dash Captain is in early access — we're onboarding sellers in waves.
Join early accessNet profit
Net marginWhat's actually left after every cost — the true bottom line.
Net profit is revenue minus every cost: COGS, shipping, platform and payment fees, discounts, returns, ads and overhead. Net margin is that as a percentage of revenue. It's what the business actually keeps — the number that survives when revenue growth is masking rising costs.
In practice
Net profit is the only number on a dashboard that can't be argued with. Every other metric is a partial view someone can defend — this one is what's left when the arguing stops. That's also why it's the last to arrive: it needs the full picture, including the fees and refunds that land weeks after the sale, so a live net profit figure is always an estimate until the period closes.
The thing worth watching isn't the monthly total but which line moved. Net profit falling while revenue grows points at unit economics — discounting, rising costs, or acquisition getting more expensive. Net profit falling with revenue is a demand problem. Same headline, two completely different responses, which is why it belongs on a board next to margin and spend rather than on its own.
Formula
Net profit = Revenue − all costs. Net margin = Net profit ÷ Revenue × 100
Example: $85,000 revenue − $62,400 costs = $22,600 (26.6% net margin).
What a good result depends on
Many DTC brands run 10–20% net; track your own trend and profit per order.
Common mistakes
- Leaving out fees, discounts or returns so profit looks bigger than it is.
- Celebrating revenue growth while net margin shrinks.
Questions people ask
- What's the difference between net profit and contribution margin?
- Contribution margin is per-sale and excludes fixed costs. Net profit is the whole business over a period, after rent, salaries, software and everything else. Contribution tells you if a sale is worth making; net profit tells you if the business works.
- Should ad spend come out of net profit?
- Yes — it's a real operating cost. Some teams also track profit before marketing to see how much the underlying business generates before growth spend, which is a useful second view, not a replacement.
- Why doesn't my net profit match my bank balance?
- Profit and cash aren't the same thing. Inventory you've paid for but not sold, payout delays and tax set aside all separate them — a profitable month can still be a tight cash month.