A dropshipping profit calculator shows your true net profit per order after supplier cost, shipping, platform transaction fees, advertising spend, and return rate. Enter your product details to see real margins — not just gross profit — so you know if a product is worth selling before scaling.
Product & Platform
What you pay to ship to customer
Average ad cost per converted sale (CPC ÷ conversion rate)
Cost Breakdown per Order
Break-Even Ad Spend
Maximum you can spend on ads per sale to break even
Monthly Profit at Volume
How to Calculate Dropshipping Profit Per Order
The dropshipping profit calculator goes beyond basic gross margin to show your true net profit after all costs — including the platform transaction fee, advertising spend per sale, and the impact of returns. Most dropshippers lose money because they underestimate hidden costs.
Understanding Platform Fees
Shopify: 2.9% + $0.30 per transaction on the Basic plan using Shopify Payments. No monthly fee is included here — model that separately. WooCommerce: Similar 2.9% + $0.30 with Stripe or PayPal. Lower monthly cost than Shopify but more setup work. Amazon: A flat 15% referral fee on most categories — no per-transaction fixed fee, but much higher percentage rate.
Calculating Ad Spend Per Sale
If you're running Facebook or Google ads, your ad cost per sale = (ad spend ÷ conversions). For example: $500 ad spend → 50 sales = $10 cost per sale. This is your conversion cost, not your CPC. Track this from your ad platform's "Cost Per Purchase" metric. Start conservative (10-15% of selling price) when estimating before launch.
Return Rate Impact
Returns kill dropshipping profits. A 10% return rate means for every 10 sales at $50, you refund $50 back — that's the equivalent of giving away one unit free. Higher-risk categories: electronics, apparel, and anything with sizing. Lower risk: consumables, accessories, home decor. Budget 5-8% as a baseline for general merchandise.
What's a Viable Dropshipping Product?
A dropshipping product is viable when net profit per order exceeds $15 and margin exceeds 20%. At $15 net profit, you can profitably spend $7-10 on ads and still make money. Below $10 net profit, it's very hard to run profitable paid traffic. Use this calculator to screen products before committing to marketing spend.
FAQ
Is this dropshipping profit calculator free?
Yes, completely free with no signup required. All calculations run locally in your browser.
What platform fees are included in the calculator?
The calculator includes Shopify (2.9% + $0.30 per transaction), WooCommerce with Stripe (2.9% + $0.30), and Amazon (15% referral fee on most categories). Select your platform to get the accurate fee applied to your selling price.
How do I calculate break-even ad spend for dropshipping?
Break-even ad spend = Net Profit per Order (before ads). This is the maximum you can spend on ads per sale and still break even. If your product has $15 net profit before ads, spending $15 per converted sale means zero profit. A target of 30-50% of net profit as ad spend leaves room for profit margin.
What is a good profit margin for dropshipping?
A healthy dropshipping margin is 20-30% net after all fees. Below 15% makes it hard to run profitable ads. Products with $15-30 net profit per unit at $50-100 selling price are common sweet spots. High-ticket dropshipping ($200+ products) can have lower percentage margins but higher absolute profit per sale.
How does the return rate affect dropshipping profit?
Returns reduce net profit by eating into revenue without reducing costs. A 10% return rate on 100 sales means 10 refunds — you lose 10 × selling price in revenue but only recover 10 × supplier cost. Returns also often include return shipping costs. Most categories see 5-15% return rates; electronics and clothing tend to be higher.
Should I include my own time in the cost calculation?
If you're doing all fulfillment and customer service yourself, consider adding a time cost. For 5 hours/week at $20/hour on 100 orders/month, that's $1 per order. At scale, this either gets automated or outsourced. For new dropshipping operations, time cost is often excluded from early profit calculations.
Is my pricing data private?
Yes. Everything runs locally in your browser. No product or revenue data is stored or transmitted.