SellerCalcs

Dropshipping Profit Calculator

Net profit per order after supplier cost, shipping, ads and payment fees.

Quick answer: Dropshipping profit = price − supplier cost − supplier shipping − ad cost − payment fees. Selling at $39.99 with a $12.50 supplier cost, $5.20 shipping and $6 of ads leaves about $14.06 before payment fees — roughly a 35% margin, which is typical for a healthy dropshipping product.

Order economics

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Your landed cost per unit.

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Outbound postage or fulfilment fee per order.

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Blended spend ÷ orders, if you advertise.

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Net profit / order
$18.29
Net margin
45.74%
Total fees
$0.00
Referral $0.00 + payment $0.00
Break-even price
$21.70
Below this you lose money per order
Selling price$39.99
− Referral fee$0.00
− Payment processing$0.00
− Product cost$12.50
− Shipping$5.20
− Ad cost$4.00
Net profit$18.29
Return on product cost (ROI)103.33%
Profit on 100 orders$1,829.00

What if you change the price?

Price changePriceProfit / orderNet margin
-20%$31.99$10.2932.17%
-10%$35.99$14.2939.71%
Current$39.99$18.2945.74%
+10%$43.99$22.2950.67%
+20%$47.99$26.2954.78%

Enter your own rates. Fee rates change — check your current seller agreement and edit the rates below to match.

Core facts
PriceFree, no sign-up
InputSelling price, supplier cost, shipping, ad cost, fee rates
OutputNet profit per order, margin, ROI, break-even price
RunsEntirely in your browser

What is Dropshipping Profit Calculator?

Dropshipping looks profitable at the product level and unprofitable at the bank account, because the costs that matter — supplier shipping, ad spend per order, payment processing and refunds — are not on the supplier's price list. This calculator subtracts all of them in one pass and reports net profit, net margin and return on the money you actually put into inventory (which, in dropshipping, is close to zero, so ROI flatters the model; watch the margin and the cash profit instead). It also prints the break-even price, the level below which every order quietly costs you money.

Common Uses for Dropshipping Profit Calculator

  • Validate a product before testing it with paid traffic
  • Find the ad cost per order your margin can actually absorb
  • Compare two suppliers quoting different prices and shipping times
  • Set a discount ceiling for a promotion
  • Screen a trending product from a spy tool against real economics

The four costs that decide the product

Supplier price, supplier shipping, ad cost per order and payment fees. Everything else is small. Products where these four add to more than 65% of the selling price rarely survive a scaling round, because ad costs rise as you leave your warmest audiences.

Where the ad ceiling comes from

Gross profit per order sets the maximum you can pay for a customer before the order is a donation. On a $39.99 sale with a $12.50 cost and $5.20 shipping, gross profit is $22.29; with a target 15% net margin you can spend about $16 per order. Any campaign above that needs a higher price, a better product cost or a bundle to lift order value.

Use break-even price to protect promos

The calculator returns the price at which profit hits zero. Discounts below that line are buying revenue at your own expense — worth doing only when the customer's lifetime value clearly covers it, which is rare in one-off dropshipping products.

Frequently Asked Questions

What margin should a dropshipping product have?
Aim for 30%+ net margin after ads and fees, which usually means selling at 2.5–3× the supplier cost. Under 20% you have almost no room for a bad ad week or a spike in refunds.
How much can I spend on ads per order?
Your gross profit per order is the ceiling: price minus supplier cost and shipping. At $39.99 with $17.70 of supplier cost you can pay up to $22.29 in ads for a break-even first order — most sellers target half that to leave room for refunds and overhead.
Do I include refunds?
Yes, as an average: multiply your refund rate by the cost of a refunded order (you usually lose the product cost and the shipping). At a 5% refund rate and $18 of cost per refund, that is $0.90 per order.
Why does dropshipping show a good ROI but thin margins?
ROI divides profit by the money you invested, and dropshipping needs almost no inventory investment, so the ratio is huge even when margin is modest. Judge the model on cash profit per order and margin, not ROI.
What about long delivery times?
They show up as refunds and chargebacks rather than line items. If your supplier ships in 15–25 days, budget a higher refund provision and expect a lower repeat rate than the checkout page implies.

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