Dropshipping Profit Calculator

What is dropshipping profit?

Dropshipping margins look large until ad cost is added. Profit per order = selling price − supplier cost − shipping − fees − ad cost − expected refund and return losses.

How to use the dropshipping profit calculator (formula)

What each field means

• Selling price — Price the customer pays.
• Supplier cost — What the supplier charges you.
• Shipping cost — Shipping cost to the customer.
• Payment fee — Payment processor fee.
• Platform fee — Store platform fee per order.
• Ad cost per order — Ad spend per order (CPA).
• Refund rate — Share of orders refunded.
• Return rate — Share of orders returned.
• Other cost — Apps, packaging or other per-order cost.

Worked example

Using these numbers: selling price $39.99, supplier cost $9.00, shipping cost $4.00, payment fee $1.50, platform fee $0.50, ad cost per order $14.00, refund rate 4%, return rate 2%, other cost $0.00.

The profit per order is $8.59.

• Break-even CPA: $24.99
• Break-even ROAS: 1.60x
• Profit margin: 21.5%
• Profit per 100 orders: $859.06

What is a good dropshipping profit margin?

After ad cost, 15–25% net margin per order is a solid dropshipping product. Below 10% is fragile because CPA moves daily.

Tips to improve your result

• Know your break-even CPA before launching ads.
• Price products at least 2.5–3× landed cost to leave room for ads.
• Include refunds — they are common with long delivery times.
• Kill ads that run above break-even CPA for three days.

Frequently asked questions