Dropshipping Profit Calculator
Calculate your dropshipping profit margin, ROAS, and break-even ROAS after product cost, shipping, ads, and platform fees.
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How to use this calculator
- 1
Enter your selling price and supplier product cost.
- 2
Add the shipping cost you pay to deliver to the customer.
- 3
Select your selling platform to auto-apply the correct fee rate.
- 4
Enter your ad spend per order (total monthly ad spend ÷ monthly orders).
- 5
Set your estimated return rate — 3% is a typical starting point.
Frequently asked questions
What is the per-order profit formula?
This tool uses profit = price − product cost − shipping cost − platform fee − ad spend per order − returns allowance. For a $39.99 item costing $8.00 with $4.00 shipping, $8.00 of ads and a 3% return rate on Shopify, profit is $18.17 per order and the margin is 45.44%. Shipping here is what you pay, not what the buyer is charged.
How is the platform fee calculated?
Fee = price × the platform’s percentage + a fixed amount. The figures built into this tool are Shopify and WooCommerce 2.9% + $0.30, Etsy 6.5% + $0.40, Amazon 15%, eBay 13.25%, and a custom percentage with no fixed part. Fee schedules change, so check your platform’s current rates and use the custom option if yours differ.
How does the returns allowance work?
It is (product cost + shipping) × return rate, added as a cost on every order. It assumes a returned order costs you the goods and the outbound shipping but keeps the sale revenue, so it is a simplification and not a refund model. The default is 3%, and a typed 0 means no allowance; a blank field falls back to 3%.
How are the ROAS figures defined?
Current ROAS is price ÷ ad spend per order, and break-even ROAS is price ÷ (profit before ads). Both appear only when ad spend is above zero. At $25 price, $12 of ads on Amazon the current ROAS is 2.08x against a break-even of 3.03x, so the report calls the order unprofitable.
Why is break-even price different from my selling price?
Break-even price is the total of all costs per order, including ads and the returns allowance. Selling at that price gives zero profit. In the Shopify example it is $21.82, meaning the $39.99 price has $18.17 of room above it.
What if units sold per month is zero or blank?
A blank field defaults to 100 units. A typed 0 gives zero monthly revenue and profit, while the per-order figures still show. The annual figure is simply monthly profit × 12 with no growth or seasonality.
Does it include subscription costs, taxes or chargebacks?
No. App subscriptions, store plans, sales tax, VAT, chargeback losses and payment holds are not fields in this tool. Ads per order must be calculated by you as total ad spend ÷ orders, and a missing value is treated as zero.
Dropshipping profit calculator: per-order profit, margin and break-even ROAS
Per-order profit, step by step
Everything starts from one order. The calculator takes the selling price and removes the supplier cost, the shipping you pay, the platform fee, the advertising spent to win the order and an allowance for returns. What remains is profit per order, which is multiplied by your monthly units for the snapshot at the bottom of the report.
| Platform | Percentage | Fixed amount per order |
|---|---|---|
| Shopify Payments | 2.9% | $0.30 |
| WooCommerce / Stripe | 2.9% | $0.30 |
| Etsy | 6.5% | $0.40 |
| Amazon | 15% | None |
| eBay | 13.25% | None |
| Custom | Your percentage | None |
Two orders, two outcomes
The first order is a $39.99 product on Shopify with comfortable room for ads. The second sells at $25 on Amazon with $12 of advertising, a combination that looks fine until the 15% fee and product cost are taken off. Both rows are calculator output.
| Inputs | Net profit / order | Margin | Current ROAS | Break-even ROAS | Monthly profit |
|---|---|---|---|---|---|
| $39.99 · cost $8 · ship $4 · ads $8 · 3% returns · 100 units · Shopify | $18.17 | 45.44% | 5.00x | 1.53x | $1,817.03 |
| $25 · cost $10 · ship $3 · ads $12 · 0% returns · 200 units · Amazon | −$3.75 | −15.00% | 2.08x | 3.03x | −$750.00 |
Reading ROAS against break-even
The second order has a 2.08x return on ad spend, which sounds acceptable until it is set beside the 3.03x needed to cover the other costs. The gap tells you which lever to pull: raise the price, cut the product or shipping cost, or lower the ad cost per order. The report flags the order as unprofitable whenever current ROAS is below break-even. The break-even figure comes from profit before ads, so it moves whenever price, product cost, shipping or the platform choice changes, even with the same ad spend.
Filling the ad spend field
Ad spend per order is total ad spend divided by the number of orders in the same period, not the cost per click. Use a recent, consistent period, and include creative or agency costs if you want them counted. Divide by orders and not by clicks or sessions. Leaving the field empty skips the ROAS section and treats ads as free, which flatters the margin.
What the model does not cover
Store subscriptions, apps, sales tax, chargeback losses and refunded revenue are outside the model. The returns allowance covers goods and shipping lost, not the money refunded to the buyer. If your supplier charges variable shipping or you offer free shipping inside the price, put the shipping you actually pay in the shipping field and build the buyer’s charge into the selling price.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →