Calculations
This article describes how calculations take place in the app along with the formulas.
Article Content
Calculations Terms and Formulas
Gross Sales = Unit Price * Quantity
Net Sales = Gross Sales - Discounts - Tax (if tax settings are turned on)
Cost Of Items/Cost Of Goods Sold (COI/COG) = Information fetched from the Cost Of Item field in your Shopify Admin
Profit (only visible based on calculation settings) = Net Sales - COI/COG
Commissions = (Net Sales (Profit will be used based on calculation settings but Net Sales is used by default) - Deductions ) * Commissions
Payouts = Net Sales (Profit will be used based on calculation settings but Net Sales is used by default) - Commissions
As an example, you can refer to the details below.
Unit Price for Item A = 19.99
Quantity = 1
Gross Sales = 19.99 (Unit Price x Quantity)
Cost Of Item (COI) = 12.00
Deduction = 5%
Net Sales = Gross Sales - Discounts - Taxes - Deductions
Net Sales = 19.99 (Gross Sales) - 5% (0.05) (Deductions) = 18.99
To compute for Profit, we will deduct the COI (Cost of Item) from the Gross Sales
Profit = 19.99 (Gross Sale) - 12.00 (COI) = 7.99
To compute for Deductions, we will multiply the Profit with the deduction
Deduction = 7.99 (Profit) x 0.05 (Deduction) = 0.4
To compute for Commissions, we will subtract Deductions from Profit and multiply it by the percentage for commissions (in the next sample, we will use 30%)
Commissions = 7.99 (Profit) - 0.4 (Deduction) x 0.3 (30% Commission) = 2.28
To compute for Payouts, we will subtract Deductions from Profit and deduct commission
Payouts = 7.99 (Profit) - 0.4 (Deduction) - 2.28 (Commission) = 5.31
Calculation Settings
To configure your Calculation settings, please go to Settings > Calculations.
Updated on: 23/09/2025
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