My Store Made $20k Last Year and I Had $0 in My Pocket
This was my wake-up call. $20,000 sales, gross profit $8000, but after Shopify fees, ads ($5000), software ($1200), my net profit was $300. I worked a whole year for $300. Because I never calculated net profit.
Gross vs Net: The Money You Actually Keep
Gross profit ignores real life expenses. Net profit is what stays in your bank after EVERYTHING. Rent, ads, subscriptions, taxes, coffee with client. That's the real number.
Formula + My Free System
Net Profit = Gross Profit - All Operating Expenses
$1600 gross - $800 ads - $200 tools = $600 net profit.
Best free tool I found: A free net profit calculator inside the income and expense tracker. I enter all expenses once a week from mobile, it shows my net profit instantly. It's free, and it stopped me from working for $300 a year.
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