---
title: Profitability and Cost of Goods
description: "The Profitability report shows gross profit based on the product costs you record in WooCommerce. Go to **WooCommerce → Deep Insights → Profitability**. [![The Profitability report](https://cdn.wpruby.com/wp-content/uploads/2026/11/13142839/deep-insights-docs-profitability.png)](https://cdn.wpruby.com/wp-content/uploads/2026/11/13142839/deep-insights-docs-profitability.png) Table of Contents [Toggle](#) - [Turn on cost of goods](#Turn_on_cost_of_goods) - [Metrics](#Metrics) - [Deep…"
url: "https://wpruby.com/knowledgebase/deep-insights-profitability/"
updated: "2026-11-13"
category: Deep Insights for WooCommerce
---

# Profitability and Cost of Goods

The Profitability report shows gross profit based on the product costs you record in WooCommerce.

Go to **WooCommerce → Deep Insights → Profitability**.

[![The Profitability report](https://cdn.wpruby.com/wp-content/uploads/2026/11/13142839/deep-insights-docs-profitability.png)](https://cdn.wpruby.com/wp-content/uploads/2026/11/13142839/deep-insights-docs-profitability.png)

Table of Contents

 [Toggle](#)

- [Turn on cost of goods](#Turn_on_cost_of_goods)
- [Metrics](#Metrics)
- [Deep Insights never guesses costs](#Deep_Insights_never_guesses_costs)
- [What gross profit includes](#What_gross_profit_includes)

## Turn on cost of goods

The report uses WooCommerce's built-in **Cost of Goods Sold** feature, available in WooCommerce 9.5 and newer.

1. Go to **WooCommerce → Settings → Advanced → Features** and enable **Cost of Goods Sold**.
2. Edit your products and enter each product's cost.
3. New orders now record the cost of each line at the time of sale.

Until a cost source is active, Profitability shows a **No cost data** label in the sidebar.

## Metrics

- **Revenue with known cost**: net sales from order lines that have a recorded cost.
- **Cost of goods sold**: the recorded cost of those lines, minus the cost of refunded items.
- **Gross profit (est.)**: revenue with known cost minus cost of goods sold.
- **Gross margin**: gross profit divided by revenue with known cost.
- **Cost coverage**: the share of net sales that has a recorded cost.

The **Profit by product** table shows net sales, cost of goods, gross profit, margin and cost coverage for each product or category.

## Deep Insights never guesses costs

Order lines without a recorded cost are treated as **unknown**, never as zero. They are left out of both revenue and cost, and they lower the cost coverage figure.

WooCommerce records costs only on orders placed after you entered them, so older orders stay unknown. If you add costs through another plugin that supports Deep Insights, run **Settings → Data → Rebuild from order history** to bring in costs for past orders.

## What gross profit includes

This is product gross profit: sales minus the cost of the products sold. It does not include shipping costs, payment fees, advertising or overheads, so it is not your net profit.

Developers can add other cost sources; see [Developer hooks](https://wpruby.com/knowledgebase/deep-insights-developer-hooks/).