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Gross Profit measures the revenue remaining after subtracting the cost of goods sold—your fundamental product profitability before operating expenses.

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Formula

Gross Profit = Net Revenue − COGS

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Formula Components

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Example

Your Shopify store generated $125,000 in net revenue in January with $47,500 in product costs:

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How It Works

Gross Profit subtracts your cost of goods sold from net revenue, showing how much money remains from each sale before accounting for operating expenses like marketing, fulfillment, and overhead. This metric is attributed through the Upstack Pixel, allowing you to measure gross profit by channel, campaign, or traffic source.

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When to Use

See all Conversions metrics →