Dropshipping Profit Calculator
Estimate real dropshipping profit after product cost, shipping, payment fees, ad spend, returns, and fixed monthly costs. Built for Shopify sellers, dropshippers, and ecommerce teams who need clearer unit economics before scaling paid traffic.
Basic Inputs
Adjust numbers to model your store economics.
Profit Breakdown
Estimated results based on your inputs.
Your current inputs suggest positive unit economics with room to scale carefully.
Estimated Net Profit
$9,413.50
Gross profit $11,413.50 − fixed $2,000.00
Profit Margin
33.03%
Break-even ROAS
1.40x
Estimated Orders
200.0
CPA
$50.00
Risk Score
Healthy
ROAS 3.00x
Cost Breakdown
Full P&L flow from revenue to net profit, with detailed metrics on the right.
Total costs
$19,086.50
Profit & loss flow
Bar width shows each line as a share of gross revenue. Use this to see whether ad spend or product cost is eating most of your margin.
Revenue
- Gross revenue
- $30,000.00
- Net revenue (after returns)
- $28,500.00
- Return impact
- $1,500.00
Traffic & orders
- Estimated orders
- 200.0
- Paid ad orders
- 200.0
- Free orders (organic + repeat)
- 0.0
- Total traffic
- 10,000
Unit economics
- Marginal profit / order
- $107.07
- CPA (blended)
- $50.00
- Ad CPA
- $50.00
- Profit margin
- 33.03%
Ad performance
- Actual ROAS
- 3.00x
- Break-even ROAS
- 1.40x
- Ad budget
- $10,000.00
- Fixed costs
- $2,000.00
Profit vs Ad Budget
See how net profit changes as you scale ad spend. Click the chart to update your budget.
How the Formula Works
The calculator starts with estimated orders from paid and optional organic/repeat traffic, then multiplies by your average order value to get gross revenue. Returns reduce revenue to net revenue.
Variable costs include product cost (on non-returned units), shipping (on all fulfilled orders), payment processing (default 2.9% + $0.30 per order), and ad spend. Subtract fixed monthly costs to arrive at estimated net profit.
Estimated Orders = Ad Budget ÷ CPA (+ organic/repeat)
Net Profit = Net Revenue − Product − Shipping − Payment Fees − Ad Spend − Fixed Costs
Break-even ROAS ≈ AOV ÷ Marginal Profit per Order
Example Calculation
AOV
$150
Product Cost
$20
Shipping
$12
Ad Budget
$10,000
CPC
$1
Conversion Rate
2%
Return Rate
5%
Fixed Costs
$2,000
Dropshipping Cost Checklist
- ✓Product cost (COGS) per unit
- ✓Outbound shipping per order
- ✓Payment processing (2.9% + $0.30 default)
- ✓Return and refund rate
- ✓Ad budget, CPC, and conversion rate
- ✓Fixed monthly apps, tools, and overhead
- ✓Chargebacks and customer support (optional buffer)
- ✓China sourcing and landed cost if importing
Need lower product cost or shipping cost?
purchaseagent.cn helps ecommerce sellers source products from China, estimate fulfillment cost, and improve margins before scaling ads.
Get a Free Sourcing QuoteOr chat on WhatsApp +8613046697138
Frequently Asked Questions
- What is a dropshipping profit calculator?
- A dropshipping profit calculator estimates your net profit after product cost, shipping, payment fees, ad spend, returns, and fixed costs. It helps you see whether scaling ads is likely to be profitable before you increase budget.
- How do I calculate dropshipping profit?
- Start with gross revenue from estimated orders, subtract returns, then deduct variable costs (product, shipping, payment fees, ad spend) and fixed monthly costs. The result is your estimated net profit and profit margin.
- What is a good profit margin for dropshipping?
- Many sustainable stores target 10% to 25% net margin after all costs. Margins below 10% can work short term but leave little room for returns, chargebacks, or rising ad costs.
- What is break-even ROAS?
- Break-even ROAS is the minimum return on ad spend needed to cover product, shipping, payment fees, and returns on each order. If your actual ROAS is below break-even ROAS, paid traffic may not be profitable.
- Why can a store lose money even with high ROAS?
- ROAS only compares ad revenue to ad spend. It ignores product cost, shipping, payment fees, returns, and fixed overhead. A store can show strong ROAS and still lose money if unit economics are weak.
- How can I reduce product cost and shipping cost?
- Compare suppliers, negotiate MOQ pricing, consolidate fulfillment, and optimize packaging weight. Independent sourcing agents like purchaseagent.cn can help estimate landed cost from China before you scale ads.
- What costs should I include in a dropshipping profit calculation?
- Include selling price (AOV), product cost, shipping cost, payment processing fees (typically 2.9% + $0.30 per order), ad budget, CPC, conversion rate, return rate, and fixed monthly costs such as apps, subscriptions, and team overhead.
- How accurate is this dropshipping calculator?
- This tool provides directional estimates based on your inputs. Actual results vary with refunds, chargebacks, discounts, taxes, and changing ad performance. Use it to stress-test scenarios before scaling spend.