Product Viability Calculator

Before spending on a product test, score its potential. This calculator combines margin, expected CPA, conversion rate and returns into a 0–100 viability score.

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Viability score65 / 100
Gross margin63.3%
Estimated profit per order$7.09
Break-even ROAS1.58x
Profit potential23.6%
Borderline. Improve the margin or offer before testing.
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How to test a dropshipping product

A product is viable when gross margin is high enough to absorb ad cost, the expected CPA leaves profit, and the conversion rate is realistic for your traffic.

How to use the dropshipping product viability calculator (formula)

Viability score = min(100, max(0, round(Profit potential×1.6 + (Gross margin>=65?25:Gross margin>=50?15:5) + (Estimated conversion rate>=2.5?20:Estimated conversion rate>=1.5?12:4)))) Gross margin = (Selling price − Product cost − Shipping cost) ÷ Selling price × 100 Estimated profit per order = Selling price − Product cost − Shipping cost − Estimated CPA − Selling price×Expected return rate÷100 Break-even ROAS = Selling price ÷ (Selling price − Product cost − Shipping cost) Profit potential = Estimated profit per order ÷ Selling price × 100

What each field means

  • Selling price — Planned selling price.
  • Product cost — Supplier cost.
  • Shipping cost — Shipping to the customer.
  • Estimated CPA — Expected ad cost per sale.
  • Estimated conversion rate — Expected store conversion rate.
  • Expected return rate — Expected return rate.

Worked example

Using these numbers: selling price $29.99, product cost $7.00, shipping cost $4.00, estimated cpa $11.00, estimated conversion rate 2.2%, expected return rate 3%.

The viability score is 65 / 100.

  • Gross margin: 63.3%
  • Estimated profit per order: $7.09
  • Break-even ROAS: 1.58x
  • Profit potential: 23.6%

What score is good enough to test?

70+ is a strong candidate for a controlled test budget. 45–70 needs a better price, offer or bundle first. Under 45 rarely survives real ad costs.

Tips to improve your result

  • Use a conservative CPA estimate — first tests usually cost more.
  • A gross margin under 50% rarely survives paid ads.
  • Check the score again after your first 50 orders with real numbers.
  • Products that solve a visible problem convert best in video ads.

Frequently asked questions

What makes a dropshipping product profitable?

High perceived value, a gross margin above 60%, a clear problem it solves, and an ad angle that shows it working.

How is the viability score calculated?

It weighs profit potential after estimated CPA, gross margin and conversion rate into a 0–100 score.

What conversion rate should I assume?

1–3% is typical for cold paid traffic to a single-product store.

Should I test a product with a low score?

Only if you can raise the price, bundle it or lower costs first.

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