Net Margin
The percentage of revenue you actually walk away with after every bill is paid. Most Shopify stores land somewhere between 10% and 20%. If you're below 10%, you're working hard but not keeping much.
Example
$20K revenue, $16K in total costs. You keep $4K. Net margin = 20%. For every $100 that comes in the door, $20 goes in your pocket.
Why It Matters
Net margin is the number that tells you if your store is actually viable. You can have $100K months and still lose money if your net margin is negative. Without tracking this, you're just guessing whether your business works.
Pro Tip
Run your net margin calculation at the end of every single month — not quarter, not year. A sudden 3% drop is your early warning that a cost crept up or a fee changed before it becomes a crisis.
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