Advertisement

Dropshipping Profit Calculator

Find your true profit per order after product, shipping, ad and fee costs — plus your profit margin and a break-even warning.

Order economics

$0.00

Margin: 0.00%

Selling price$0.00
Product cost$0.00
Shipping cost$0.00
Ad cost$0.00
Payment / platform fees$0.00
Total costs$0.00

Profit per order = price - cost - shipping - ad - fees. Break-even is profit = 0; below that, every order loses money.

Advertisement
1

Enter price and costs

Add your selling price, supplier product cost, shipping cost and ad spend per order, plus any payment or platform fee.

2

Pick your currency

Work in USD, PKR or AED — the breakdown and margin adjust to your store's currency automatically.

3

Review profit and margin

See profit per order, margin percentage, and a red warning if you are at or below break-even.

How the dropshipping profit calculator works

Most dropshipping "profit" estimates look good until the real costs show up. This dropshipping profit calculator subtracts every per-order cost — product cost, shipping, ad spend, and payment or platform fees — from your selling price, so you see the profit you actually keep per order and your true margin.

The profit formula explained

Profit = selling price - product cost - shipping - ad cost - (selling price x fee % / 100)

Margin = profit / selling price x 100

Example: a $29.99 product costing $8.50 with $3.00 shipping, $6.00 in ads, and a 2.9% payment fee ($0.87). Profit = 29.99 - 8.50 - 3.00 - 6.00 - 0.87 = $11.62, a margin of 38.75% — a healthy number.

Advertisement

Break-even: the number that matters

Break-even is the point where profit per order equals zero — your price exactly covers every cost. If the calculator shows profit at or below zero, you lose money on every single order, and scaling only scales the loss. The red warning flags this immediately. Fix it by raising the price, negotiating a cheaper supplier, cutting ad cost per order, or moving to cheaper shipping.

What counts as ad cost per order

Do not use your total ad budget — use spend divided by orders. If you spent $300 on ads to get 50 orders, your ad cost per order is $6.00. Recompute this weekly, because ad costs swing with seasons, audiences, and creative fatigue.

Target margins

  • 20-40%: the healthy zone for most dropshipping stores — room for returns, refunds, and ad fluctuations.
  • 10-20%: workable but fragile; one bad week of ads or a wave of returns can wipe it out.
  • Below 10%: too thin for dropshipping — consider a higher price point or a different product.

Frequently asked questions

How do I calculate dropshipping profit per order?
Profit per order = selling price minus product cost minus shipping cost minus ad cost minus payment/platform fees. Divide by the selling price and multiply by 100 to get the profit margin percentage.
What is a good profit margin for dropshipping?
Most successful dropshippers target a 20-40% net margin after all costs. Below 10% leaves almost no room for returns, ad fluctuations, or fees.
What costs should I include in a dropshipping profit calculation?
Include product cost, shipping per order, ad spend per order, payment gateway fees (usually 2-3%), and marketplace or platform fees. Also keep refunds and chargebacks in mind.
What is break-even in dropshipping?
Break-even is where your profit per order equals zero — your selling price exactly covers all costs. If profit is negative, you lose money on every order and need to raise the price or cut costs.