Profit metric
Net profit
What you keep after every cost Marginful knows about: product costs, shipping, fees, ad spend, custom costs and operating expenses.
What you keep after every cost Marginful knows about: product costs, shipping, fees, ad spend, custom costs and operating expenses.
Net profit = Contribution profit − fixed custom costs − operating expenses
Example
Net revenue $10,000 − product costs $4,000 − shipping, fees and other variable costs $1,500 − ad spend $2,000 − operating expenses $1,200 = net profit $1,300.
How it is calculated
- Contribution profit already has product costs, shipping, handling, fulfillment, packaging, payment fees, return costs, chargebacks, variable custom costs, marketing costs and ad spend taken out.
- Fixed custom costs that are not tagged as marketing, and operating expenses from Expenses, are taken out last.
- For the current day, recurring expenses and fixed costs count only for the part of the day that has passed. See partial-day proration.
Reading it
- Format: Amount in your reporting currency.
- Higher is better (an increase is shown in green).
Where it appears
- Overview and Dashboards — add it from the metric picker (Profit group).
- Shown on Overview by default.
- Custom metrics — use the variable
net_profitin a formula. See custom metrics.
Related
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