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Get startedNet 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.
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.