Gross Profit Margin
Gross profit margin is the percentage of revenue remaining after deducting the direct costs of delivering your product or service, including Stripe processing fees. It measures how efficiently you convert revenue into profit before operating expenses.
Stripe metric
Gross Profit Margin = ((Revenue - Cost of Goods Sold) / Revenue) × 100
Gross profit margin is the percentage of revenue remaining after deducting the direct costs of delivering your product or service, including Stripe processing fees. It measures how efficiently you convert revenue into profit before operating expenses.
Full guide: definition, formula, and benchmarksHow to calculate Gross Profit Margin
Gross Profit Margin = ((Revenue - Cost of Goods Sold) / Revenue) × 100
Why Gross Profit Margin matters for Stripe users
Gross margin determines how much revenue is available to fund operations, growth, and profit. Declining margins signal rising input costs, pricing pressure, or an unfavourable shift in product mix that demands attention.
Stripe users can factor processing fees, refunds, and chargebacks into their cost base to calculate a true gross margin that reflects payment economics. Segmenting margin by product line reveals which offerings generate healthy returns and which erode profitability.
Driver
Conversion rate
Outcome · 58% contribution
Revenue
Understand and act on Gross Profit Margin with KPI Tree
Connect Stripe net revenue and fee data alongside your cost-of-goods data in KPI Tree via your warehouse. Build a profitability tree that decomposes gross margin into revenue, processing costs, and product delivery costs.
Assign finance ownership and set alerts when margin contracts beyond normal variance for any product line or customer segment.
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Related Stripe metrics Ready to add to your trees.
Net Revenue
PaymentsNet Revenue = Gross Payment Volume - Fees - Refunds - Chargebacks
Net revenue is the total payment volume minus Stripe processing fees, refunds, chargebacks, and other deductions. It represents the actual revenue retained from payment processing activity.
View metric
Transaction Fee Analysis
PaymentsTransaction fee analysis examines the total and per-transaction cost of payment processing, including Stripe platform fees, card network fees, and currency conversion charges. It reveals the true cost of accepting payments.
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Revenue by Product
PaymentsRevenue by product breaks down total payment volume by product or service line. It shows which offerings contribute most to revenue and how the product mix evolves over time.
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Refund Rate
PaymentsRefund Rate = (Refunded Transactions / Total Transactions) × 100
Refund rate is the percentage of transactions that are refunded, either fully or partially. It indicates customer satisfaction issues, product problems, or policy-related returns.
View metricExplore Gross Profit Margin across integrations
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