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.