Introduction
The import list has a built-in profit calculator. The Profit column shows, per product, the amount you have left after subtracting the purchase price and VAT from your selling price. If you adjust the selling price, the profit changes with it - live, while you type.
The formula
Profit = (selling price ÷ (1 + VAT rate)) − purchase price
In words: we first take the VAT out of your selling price (because the VAT is not yours - you pass it on to the tax office), and then subtract what you pay the supplier (the B2B price, shown in the Cost column).
The VAT rate depends on the product: the high rate (for example 21% in the Netherlands) for most products, the low rate (for example 9%) for products such as food.
A calculation example
A product costs you €10.00 (Cost) and you sell it for €18.15 with 21% VAT:
Selling price excluding VAT: €18.15 ÷ 1.21 = €15.00
Profit: €15.00 − €10.00 = €5.00
Raise your price to €19.36 and the profit becomes €6.00; lower it to €12.10 and the profit drops to €0.00.
The "Loss" warning
If your price is so low that the profit is negative - you would pay more for the product than you keep after VAT - the Profit column shows a Loss badge. Fix this by raising the price in the Price column, or by increasing your margin for the whole supplier. See Set your margins per supplier.
What the calculator does not include
The calculator only looks at the product purchase price and VAT. It does not subtract:
shipping costs the supplier charges per order,
payment provider or platform transaction fees,
your subscription and marketing costs.
Keep those in mind when deciding on your margins - a €2.00 "profit" can still be a loss after €4.95 shipping.
Where do I find it?
Open the Import list.
The Profit column is shown next to the Price column for every product.
In the Shopify app you can also sort on it: click the sort icon, choose Profit and Low to high to find your worst-earning products first.
Related articles