The calculation / from sale to result

Revenue is the start.
Profit is the path.

MarginPatrol starts with Shopify sales, accounts for the main variable costs, and shows the quality of the inputs behind the selected result.

Follow the formula
One selected store day Sales → costs → operating profit With visible data limitations

01 / Formula

Follow every subtraction.

Three linked results explain what the number includes. Customer-paid shipping adds to revenue; the store’s shipping cost is a separate expense.

  1. 01

    Net revenue

    Product sales + shipping charged to customers − discounts − refunds

  2. 02

    Profit before ads

    Net revenue − product costs − store shipping costs − payment fees

  3. 03

    Operating profit

    Profit before ads − advertising spend

Order and product profit are shown before ads. MarginPatrol does not allocate advertising spend to individual orders or products. When ad spend is missing, profit before ads can remain available while operating profit is unavailable.

02 / Illustrative order review

A corrected cost changes the calculation.

This fictional order has an estimated store shipping cost. Replacing that estimate with its exact cost changes profit before ads. It does not mean the store recovered money.

How to correct costs
Sample order / before ads USD
Product sales
$120
Customer-paid shipping
+ $5
Discounts
−$15
Refunds
$0
Net revenue
$110
Product costs
−$80
Store shipping cost estimated
−$40
Payment fees
−$5
Profit before ads
−$15
After exact shipping cost is recorded
Shipping cost −$25Profit before ads $0

Illustrative example — sample data, not a real store. The result changed because the input changed, not because $15 was recovered.

03 / Data Quality

The limitation travels with the result.

Missing expenses are not treated as zero. If required costs are missing, MarginPatrol shows the narrower available result or labels the known subtotal as incomplete instead of presenting it as complete operating profit.

Understand Data Quality
Confirmed

Required source data is present for the shown result. This is not an accounting certification.

Estimated

A rule supplies a value to check against the actual cost.

Preliminary

Source data may still update and the result may be recalculated.

Missing or incomplete

A required input is unavailable; a complete result is not claimed.

Excluded

A component is intentionally outside this result’s formula.

The product boundary

A daily operating view, with its limits in sight.

Operating profit covers the components shown in the breakdown. Taxes, payroll, rent and depreciation are not included in the v1 formula. The result is not a full accounting profit and loss statement.

Saved changes can trigger recalculation. While they are being processed, the previous result remains visible with a notice; reopen the selected day when processing completes.

MarginPatrol calculates operating profit for daily monitoring. It is not accounting, tax, audit or financial advice software.