Dropshipping Profit
Calculator
Enter your product cost, shipping, platform fees, and ad spend. See exact net profit, margin %, ROI, break-even ad cost, and monthly projections — instantly.
Pricing
Shipping & Returns
Platform & Payment Fees
Advertising & Volume
Net Profit per Sale
Fill in your numbers on the left — every field updates results live.
Net Margin
After all costs
Gross Margin
Before fees & ads
ROI
Return on cost
Total Cost / Sale
All costs combined
Break-Even Ads
Max ad spend / sale
Break-Even Price
Min selling price
Revenue
Total Costs
Net Profit
What each metric means
Every output tells you something different about a product's viability. Here's what to look at first — and why.
Net Profit per Sale
What you actually keep after every cost is deducted. This is real earnings — not revenue. Positive means profitable; negative means you lose money on every single order.
Net Margin %
Net profit as a percentage of your selling price. A 25% margin means you keep $0.25 from every $1.00 sold. The single most important metric for evaluating whether a product can scale.
Gross Margin %
Profit after product cost and shipping only — before platform fees and ad spend. Shows raw product profitability before the operational layer is added on top.
ROI %
Return on Investment relative to your total costs. A 50% ROI means for every $1.00 you spend, you get $1.50 back. Use this to compare products side by side.
Break-Even Ad Cost
The maximum you can spend acquiring one sale before profit reaches exactly zero. Use this as your target CPA when setting up Facebook, Google, or TikTok ad campaigns.
Break-Even Price
The absolute minimum selling price at which you stop losing money. Use this as your floor when setting prices or running any promotional discounts or sales.
What is a good dropshipping margin?
These are the thresholds behind the health indicator in the calculator. Use them to evaluate products before spending on ads.
| Net Margin | Health | What it means | Action |
|---|---|---|---|
| 30%+ | Strong | Excellent. Plenty of room to scale ad spend and absorb returns without going into the red. | Scale confidently. Test new audiences and increase budgets. |
| 20–30% | Good | Solid margin. Profitable at most realistic ad costs. Can handle moderate return rates. | Optimise and scale. Push toward 30%+ by renegotiating supplier pricing. |
| 12–20% | Average | Thin but workable at volume. Very vulnerable to ad cost spikes or return increases. | Improve COGS or raise price before committing to scale. |
| 0–12% | Weak | Dangerously thin. Any cost increase will push you into loss territory immediately. | Fix your pricing or find a cheaper supplier. Do not increase ad spend yet. |
| Below 0% | Loss | Losing money on every sale. Scaling with ads will accelerate losses, not solve them. | Stop all paid traffic. Restructure costs completely or drop the product. |
Frequently asked questions
Common questions about dropshipping margins, fees, and how to use this calculator correctly.
A net profit margin of 20–30% is considered good for dropshipping. Below 15% is risky — any spike in ad cost, return rate, or supplier price can push you into loss. Above 30% gives you genuine room to scale. Volume also matters: a 15% margin on 500 units a month can work; the same margin at 10 units leaves almost no buffer for anything to go wrong.
Include every cost layer: product cost (COGS), shipping to the customer, platform fee (Shopify ~2%, eBay ~13%, Amazon ~15%, Etsy ~6.5%), payment processing fee (Stripe / PayPal: 2.9% + $0.30), ad cost per sale (total ad spend ÷ sales), and an amortised return cost based on your return rate. Sellers who skip any of these almost always overestimate their real margin by 10–20 percentage points.
Break-even ad cost is the maximum you can spend acquiring one sale before profit reaches zero. If your break-even ad cost is $18, any sale acquired for under $18 is profitable — every dollar above $18 is a loss. Use this as your CPA target in Facebook Ads, Google Ads, or TikTok Ads. Never launch a paid campaign without knowing this number first.
The calculator is mathematically precise given the numbers you enter. Accuracy depends entirely on the quality of your inputs. Use your actual supplier invoice for COGS, your real ad spend divided by actual sales for ad cost, and your platform's published fee schedule for platform and payment rates — not estimates. The more precise your inputs, the more reliable your output. The platform preset buttons auto-fill published rates to give you a solid starting point.
Yes — always. Sellers who exclude ad spend are calculating gross margin, which is dangerously misleading for paid-traffic dropshipping. If you spend $500/month on ads and generate 50 sales, your ad cost per sale is $10. A product with a 35% gross margin can become 5% or negative net margin once ads are included. Never evaluate a product without knowing your real cost per acquired sale.