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

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.

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