Enter the selling price and cost price into the calculator to determine the margin. This calculator can also evaluate any of the variables given the others are known.
Shopify Margin Formula
The following formula is used to calculate the margin on Shopify.
M = (SP - CP) / SP * 100
Variables:
- M is the margin (%)
- SP is the selling price ($)
- CP is the cost price ($)
To calculate the margin, subtract the cost price from the selling price. Then, divide the result by the selling price. Multiply the quotient by 100 to get the margin percentage.
What is a Shopify Margin?
A Shopify margin refers to the profit margin a business owner makes from selling products on the Shopify platform. It is calculated by subtracting the cost of goods sold (including Shopify fees, shipping costs, and other expenses) from the selling price of the product. This margin is crucial for businesses to understand their profitability and financial health.
How to Calculate Shopify Margin?
The following steps outline how to calculate the Shopify Margin:
- First, determine the selling price ($).
- Next, determine the cost price ($).
- Next, gather the formula from above = M = (SP – CP) / SP * 100.
- Finally, calculate the Shopify Margin.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem:
Use the following variables as an example problem to test your knowledge.
selling price ($) = 150
cost price ($) = 120
