Dropshipping Profit Calculator

Find out whether a dropshipping order really makes money once ads and returns are counted.

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Dropshipping Profit Calculator

Enter the sale price and every cost attached to one order.

Profit per order
β€”
Enter values above
Profit margin
β€”
Effective profit after returns
β€”
Payment fee
β€”
Break-even ad spend
β€”
Orders needed for $1,000 profit
β€”

Worked example

With the default inputs shown below, this calculator returns the following results:

InputValue
Selling price ($)45
Product cost ($)18
Shipping cost ($)6
Ad spend per order ($)7
Payment processing (%)2.9
Return rate (%)5
ResultValue
Profit per order$12.70
Profit margin28.21%
Effective profit after returns$11.35
Payment fee$1.31
Break-even ad spend$19.70
Orders needed for $1,000 profit89

Values shown are produced by this page in your browser; change any input to update them.

How to use the Dropshipping Profit Calculator

  1. Selling price ($) β€” default 45
  2. Product cost ($) β€” default 18
  3. Shipping cost ($) β€” default 6
  4. Ad spend per order ($) β€” default 7
  5. Payment processing (%) β€” default 2.9
  6. Return rate (%) β€” default 5
  7. Press Calculate to update the results instantly.

Frequently asked questions

Fifteen to thirty percent after ad spend is typical for a healthy store. Below 10% there is no room for refunds, chargebacks or price competition.
On a return you usually lose the shipping and the ad spend, and the payment fee is often not refunded β€” but you keep the product. Modelling that separately gives a much more realistic profit.
The break-even ad spend figure is your hard ceiling. In practice target a maximum of a third of the sale price so that returns and fees cannot wipe out the order.

Sources & references