Profit Margin Calculator Shopify

Profit Margin Calculator — Shopify/DTC 💰

Calculate product profitability for Shopify and DTC stores — cost breakdowns, profit margins, and CAC/LTV analysis.

Installation

npx skills add nexscope-ai/eCommerce-Skills --skill profit-margin-calculator-shopify -g

Cost Components

| Cost Item | Description | Notes |

|-----------|-------------|-------|

| Product Cost | FOB purchase price | - |

| Inbound Shipping | To 3PL warehouse | - |

| 3PL Fulfillment | ShipBob/Deliverr etc. | - |

| Payment Processing | 2.9% + $0.30 | Shopify Payments |

| Advertising | 20-40% | Main cost ⚠️ |

| Return Cost | Return processing | - |

| Customer Shipping | If free shipping offered | Optional |

DTC Characteristics

• No platform commission: Only payment processing fees
• High ad spend ratio: 20-40%, main cost driver
• Requires high margins: 60%+ gross margin to support ads
• Focus on LTV/CAC: Recommended >3

Key Metrics

| Metric | Recommended |

|--------|-------------|

| Gross Margin | >60% |

| Net Margin | >20% |

| LTV/CAC | >3 |

| Repeat Rate | Higher = better |

Usage

python3 scripts/calculator.py

python3 scripts/calculator.py '{"selling_price": 49.99, "ad_spend_ratio": 0.20, "product_cost": 12}'

Output Example

💰 **Shopify/DTC Profit Analysis Report**

Selling Price         $49.99   100.0%
────────────────────────────────────────
Product Cost          -$12.00    24.0%
3PL Fulfillment       -$4.50     9.0%
Payment Processing    -$1.75     3.5%
Advertising           -$10.00    20.0%  ⬅️ Main cost
...
────────────────────────────────────────
Net Profit            $18.59    37.2%

💡 Max Affordable CAC: $10.00

DTC Golden Ratios

DTC Health Formula:
├── Gross Margin > 60%
├── Ad Spend < 30%
├── Fulfillment < 15%
├── Net Margin > 15%
└── LTV/CAC > 3

vs Amazon

| Item | Amazon | Shopify/DTC |

|------|--------|-------------|

| Platform fee | 8-15% | 0% |

| Payment fee | Included | 2.9% + $0.30 |

| Ad spend | 10-20% | 20-40% |

| Margin need | 40%+ | 60%+ |

| Traffic | Platform | Self-built |

Part of Nexscope AI — AI tools for e-commerce sellers.