Dropshipping Profit Calculator
Find profit per order for a dropshipping product.
Results update as you type.
How it works
Dropshipping can look profitable on the surface but thin once all costs are counted, and this calculator shows the true profit per order. You enter the selling price, the product cost from your supplier, the shipping cost, the advertising cost per order, and the transaction fee percentage, and it returns your profit per order, your profit margin, and the total cost. The calculation subtracts every cost from the selling price: what you pay the supplier for the product, shipping, the advertising you spent to acquire that sale, and the payment processor's fee, which scales with the price. The result is often eye-opening, because advertising cost in particular can consume most of the apparent markup. Many beginning dropshippers focus only on the difference between selling price and product cost, forgetting that ad spend to acquire each customer is frequently the largest expense and the difference between profit and loss. A healthy dropshipping margin leaves room after all costs for returns, refunds, chargebacks, and your own time. Because ad costs vary and can rise as you scale, monitoring profit per order closely is essential. Use this calculator to test whether a product is viable at a given price, to find the price you need to charge for a target margin, and to understand how sensitive your profit is to advertising efficiency. Enter your price, costs, and fee to find the profit per order.
Profit = price − (product cost + shipping + ad cost + price × fee%)
Dropshipping profit per order is the selling price minus all costs: the product cost paid to the supplier, shipping, the advertising spent to make the sale, and the payment transaction fee, which is a percentage of the price. The profit margin is that profit divided by the selling price, times 100.
Source:E-commerce economics
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter selling price and product cost.
- 2
Adjust the options
Adjust shipping cost, ad cost per order and transaction fee if they apply — sensible defaults are already set.
- 3
Read your result
Profit per order updates instantly as you type — no button to press.
Frequently asked questions
How do I calculate dropshipping profit?
Subtract all your costs from the selling price: the product cost from your supplier, shipping, the advertising spent to make the sale, and the payment transaction fee. The remainder is your profit per order. The calculator also expresses this as a margin percentage, so you can judge whether a product is worth selling at your chosen price.
Why is advertising cost so important in dropshipping?
For most dropshipping stores, advertising is the largest cost after the product itself and often determines whether an order is profitable. Beginners frequently overlook it, focusing only on product markup, and are surprised to find little or no profit once ad spend is included. Tracking ad cost per order is essential to real profitability.
What is a good dropshipping profit margin?
Margins vary, but many dropshippers aim for at least 20 to 30 percent after all costs, leaving room for returns, refunds, and unexpected expenses. Thin margins are risky because a small rise in ad costs or product prices can wipe out profit. Higher-priced products can support the ad spend needed to acquire customers profitably.
What costs am I missing if I only compare price and product cost?
Comparing only selling price to product cost ignores shipping, advertising, payment processing fees, and indirect costs like returns, refunds, chargebacks, app subscriptions, and your time. Advertising alone can exceed the product markup. Including all costs, as this calculator does for the major ones, gives a realistic picture of whether you actually make money.
How can I improve dropshipping profitability?
Raise profit by increasing selling price where the market allows, negotiating lower product and shipping costs with suppliers, and above all improving advertising efficiency so you spend less to acquire each sale. Selling higher-value products, increasing average order value with upsells, and boosting repeat purchases all help spread costs and improve overall margins.