Dropshipping Profit Calculator

Calculate true dropshipping profit per sale after supplier cost, platform fees, ad spend, and shipping. See your real margins before committing to a product.

📦 E-commerce💼 Profit = Sale Price − Supplier Cost − Shipping − Platform Fee − Ad Spend
Retail selling price ($)
Supplier/product cost ($)
Shipping cost ($)
Platform fee % (e.g. Shopify 2.9%+$0.30)
Avg ad spend per sale ($)
Monthly order volume
Please enter valid values.

Formula & Reference

VariableFormulaUnits
Dropshipping Profit CalculatorProfit = Sale Price − Supplier Cost − Shipping − Platform Fee − Ad Spend$/order

Step-by-Step Examples

Example 1
Typical Dropship Product

$39.99 price, $8 supplier, $4.50 shipping, 2.9% Shopify, $8 ad cost, 100 orders.

  • Platform fee: $39.99×0.029+$0.30 = $1.46
  • Total costs: $8+$4.50+$1.46+$8 = $21.96
  • Profit: $39.99-$21.96 = $18.03 (45%)
  • Monthly: 100×$18.03 = $1,803
✓ $18.03/order, $1,803/month
Example 2
Winning Product Higher Ticket

$79.99 price, $18 supplier, $6 shipping, 2.9% Shopify, $12 ads, 50 orders.

  • Platform fee: $79.99×0.029+$0.30 = $2.62
  • Costs: $18+$6+$2.62+$12 = $38.62
  • Profit: $41.37 (51.7%)
  • Monthly: 50×$41.37 = $2,069
✓ $41.37/order, $2,069/month
Example 3
Thin Margin Product

$19.99 price, $6 supplier, $3.50 shipping, 2.9%, $10 ads.

  • Total costs: $6+$3.50+$0.88+$10 = $20.38
  • Profit: $19.99-$20.38 = -$0.39
  • LOSING MONEY on every sale! Reduce ad cost or raise price.
✓ LOSS: -$0.39/order — product doesn't work at this ad cost

Real-World Applications

📦
Dropshipping Stores
Validate product economics before ordering samples or spending on ads.
📊
Product Research
Identify which products can support profitable ad campaigns.
💻
Online Business
Run margin calculations before building a whole store around a niche.
💼
Investor Pitch
Show unit economics of your dropshipping business model.

Common Mistakes to Avoid

⚠️
Ignoring advertising cost per sale

Ad spend is the biggest variable in dropshipping. A $5 product cost with $25 CPA (cost per acquisition) is often loss-making. Calculate real break-even CPA before running ads.

⚠️
Underestimating shipping times and refunds

Long AliExpress shipping causes refund requests. Budget 5–15% of revenue for refunds and chargebacks depending on niche.

⚠️
Forgetting returns and customer service cost

Factor in 2–5% of revenue for returns processing, customer service staff, and reputation management tools.

Frequently Asked Questions

What margin is sustainable in dropshipping? ▾
30–40%+ before ad spend. After profitable ad CPA, target 15–25% net margin. Under 15% is hard to scale profitably unless you have very low CAC channels.
How do I calculate break-even CPA? ▾
Break-even CPA = (Selling Price − Supplier Cost − Shipping − Platform Fee). If that's $20, you can spend up to $20 per sale on ads and break even.
What products work best for dropshipping? ▾
Products with 3–5x markup potential, not available in mainstream retail, solving a clear problem, easy to ship, and targeting passionate audiences.
Is dropshipping dead in 2024? ▾
No, but it's harder than 2017–2020. Higher ad CPMs, Chinese platform competition, and consumer awareness of long shipping times require better niche selection and customer experience.
AliExpress vs domestic dropshipping? ▾
AliExpress: lower cost, longer shipping. Domestic (Spocket, US/EU suppliers): faster shipping, higher cost. Domestic is increasingly necessary for competitive markets.

Related Business Calculators

📦 Amazon FBA🛒 Shopify Fees📦 Print on Demand📊 Profit Margin📊 ROAS