Dropshipping

Dropshipping profit calculator

Real margin per order after supplier cost, shipping, platform fees, payment processing, ad spend, and returns.

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What this calculator does

Dropshipping looks almost free because you never buy inventory up front, but the real margin per order is usually much thinner than the price suggests. This calculator shows you what is actually left.

Your supplier charges for the product and its shipping, the platform takes a fee, the card processor takes a cut, some orders are returned, and above all, ad spend usually takes the biggest bite. Enter your numbers and the tool shows your net profit per order, your net margin, and your markup over cost.

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⚠ Important disclaimer. Supplier costs, shipping times, and platform fees vary widely and change without notice. Results are estimates only — not financial advice. Always verify costs with your actual supplier before making any pricing decision. Full legal disclaimer →
Revenue
Selling price
$
Supplier & product
Supplier / product cost
AliExpress, CJ Dropshipping, Zendrop, etc.
$
Supplier shipping cost
ePacket, DHL, YunExpress, etc.
$
Platform & processing fees
Platform fee %
Shopify, WooCommerce, etc.
%
Payment processing flat fee
e.g. Stripe / PayPal $0.30 per transaction
$
Return / chargeback rate %
%
Marketing
Ad spend per order $8
Net profit per order
—
—
Net margin
—
of selling price
Break-even ROAS
—
—
Total supplier cost
—
product + shipping
Markup multiple
—
price ÷ supplier cost
Cost breakdown
Markup scenario analysis
Selling price Net profit Net margin
Estimates only. Not financial, tax, or legal advice. Dropshipping margins vary widely by supplier, niche, and platform. Supplier costs and shipping rates fluctuate. Always verify with your actual supplier. Full legal disclaimer

How to use the calculator

Enter your selling price, the supplier's product cost and shipping, the platform fee percentage, and the payment processing fee. Set your return rate, then use the slider for ad spend per order. The result updates instantly, and nothing you type is saved.

A worked example you can follow

Here is the default scenario: a $39.99 product with a $7 supplier cost, $3 supplier shipping, a 2.9% platform fee, a $0.30 processing fee, a 3% return rate, and $8 of ad spend per order.

Worked example · $39.99 order

Where the $39.99 actually goes

Selling price$39.99
Supplier product cost−$7.00
Supplier shipping−$3.00
Platform fee (2.9%)−$1.16
Payment processing−$0.30
Return loss (3%)−$0.30
Ad spend per order−$8.00
Net profit per order$20.23

That is a 50.6% net margin and a 4.0x markup over the $10 landed cost. Notice that ad spend alone is $8 of the cost. Dropshipping lives or dies on how efficiently you can advertise.

Why dropshipping margins are thinner than they look

The classic mistake is to subtract only the supplier cost and call the rest profit. In reality ad spend is usually the largest line, and it is the one you control least once a campaign is live. A healthy dropshipping product typically needs a markup of at least three to five times its landed cost so there is room to advertise and still profit. At a 2x markup, a single mediocre ad day can erase the margin entirely.

Because you are selling products anyone else can also source, your advertising is often what sets you apart, and it is also your biggest risk. Use the calculator to find the highest ad spend per order you can sustain before the product stops making money, and treat that as your ceiling.

Using this to make better decisions

Test a product's margin before you build a store around it, and be honest about ad costs. If the margin only works at an unrealistically low ad spend, the product is probably not viable. This is general educational guidance, not financial advice, so verify your supplier and platform costs directly.

Glossary of terms

New to selling online? Every term this calculator uses is defined below in plain language, with a quick example where it helps. No prior experience assumed.

Supplier cost
What your supplier charges for one unit of the product, before their shipping.
Supplier shipping
What the supplier charges to ship one order to your customer, often separate from the product cost.
Landed cost
Your total cost to deliver one order: supplier cost plus supplier shipping combined.Example: $7 product plus $3 shipping is a $10 landed cost.
Markup
Your selling price divided by your landed cost, shown as a multiple. Dropshippers often aim for 3x to 5x.Example: a $40 price on a $10 landed cost is a 4x markup.
Platform fee
The percentage a selling platform keeps from each sale, charged on the selling price.
Payment processing fee
A percentage plus a flat amount taken by the card processor on each order.
Ad spend per order
How much you pay in advertising, on average, to generate one sale.Example: spending $300 to win 100 orders is $3 of ad spend per order.
Return rate
The share of your orders that customers send back, written as a percentage.Example: a 5% return rate means about 5 of every 100 orders come back.
Net profit per unit
What you actually keep from one sale after every cost has been subtracted from the price. This is the number that tells you whether a product makes money.
Net margin
Net profit shown as a percentage of the selling price, so products at different prices can be compared on equal footing.Example: $12 profit on a $30 sale is a 40% net margin.

Frequently asked questions

Why is my dropshipping profit lower than expected?

Usually because ad spend is the largest cost and gets left out of quick mental math. The calculator includes it, along with platform and processing fees, so the number you see is the real one.

What markup should I aim for?

Many dropshippers target at least three to five times their landed cost, which leaves room to advertise and still profit. Thinner markups are fragile once ad costs rise.

Does the calculator store the numbers I enter?

No. Everything is calculated locally in your browser and nothing is collected or transmitted.

Is this financial advice?

No. The results are estimates for your own planning, not financial or accounting advice. Verify your supplier and platform costs directly.

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