Calculations

This article describes how calculations take place in the app along with the 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

To configure your Calculation settings, please go to Settings > Calculations.

Updated on: 30/05/2025