Profit margin per product tells you how much is left from each sale after subtracting all the costs proportional to that order.
The formula
Profit Margin = Profit ÷ Revenue
It's expressed as a percentage. If your product brings in $10,000 in revenue and the profit is $2,500, the margin is 25%.
What the costs include
The costs that go into the calculation already include each order's proportional costs:
- Product cost (what you entered in the costs section).
- Platform fee (Tiendanube, Shopify, Mercado Libre).
- Proportional shipping cost.
- Taxes (if you have them configured).
- Mercado Libre Product Ads spend (since August 2026).
The margin you see in Product Analytics is the contribution margin: it doesn't include fixed costs or Meta/Google Ad Spend, which affect the business's total margin but can't be attributed to a specific product.
Where do I see it?
In Product Analytics, the "Margin" column shows this percentage for each product or variant over the period you choose.