Dropshipping Profit Calculator
Find your real profit per sale, margin, and break-even ROAS after product cost, shipping, ads, and payment fees.
Calculate Your Dropshipping Profit
What your supplier charges you per unit, before shipping.
What you pay the supplier or carrier to ship one order.
Your average advertising cost to win one sale (total ad spend divided by total sales).
Shopify Payments charges 2.9% on the Basic plan. Stripe charges the same 2.9% standard US rate.
Shopify Payments and Stripe both add a flat 30¢ per transaction.
How many orders you expect to fulfil in a typical month.
Cost Breakdown Per Sale
| Item | Amount |
|---|
Monthly and annual profit use the rounded per-sale profit, the same way a payment processor settles each order to the cent. Fixed monthly costs such as your Shopify plan ($29/month on Basic) are not included — subtract them from monthly profit for your final figure. Estimates only.
How Dropshipping Profit Is Calculated
Your profit per sale is what is left after every cost that touches one order: the product, the shipping, the ad spend that won the sale, and the payment fee. The fee is a percentage of the selling price plus a flat per-transaction charge, so it grows as your price grows.
Profit per sale = price − product cost − shipping − ad spend − payment fee
Profit margin = profit per sale ÷ selling price × 100
Profit before ads = price − product cost − shipping − payment fee
Break-even ROAS = selling price ÷ profit before ads
Monthly profit = profit per sale × monthly orders
Annual profit = monthly profit × 12
What Is a Good Dropshipping Profit Margin?
A net margin of 20–40% after ads and fees is the healthy zone for most dropshipping stores. Margins above 40% are excellent but unusual unless your product is cheap to source and you advertise efficiently. A margin under 10% is a red flag: one refund, one ad-cost spike, or one shipping delay can wipe out the profit on several orders.
If your margin is thin, you have three levers: raise the price, find a cheaper supplier, or lower your ad cost per sale. Cutting the product cost by $1 on a $29.99 item lifts profit per sale by the same $1 — at 100 orders a month, that is $100 a month straight to profit.
The 2.5–3x Landed-Cost Pricing Rule
A common rule of thumb is to price your product at 2.5 to 3 times its landed cost (product cost plus shipping). If your landed cost is $11.50, that points to a price of roughly $28.75 to $34.50. The rule is only a starting point: it leaves room for ad spend and fees while keeping a healthy margin, but the right price also depends on what competitors charge and what your customers will pay.
Break-Even ROAS, Explained
ROAS (return on ad spend) is revenue divided by ad spend. Your break-even ROAS is the ROAS at which your ads exactly pay for themselves: every dollar of ad spend brings in exactly enough gross profit to cover it. If your break-even ROAS is 1.73x, an ad campaign returning 2.5x is profitable and one returning 1.5x loses money. Track this number per product, because a product with a low break-even ROAS is far more forgiving of expensive ads.
Watch Out for Import Duties in 2026
The US duty-free de minimis exemption for low-value parcels was suspended on August 29, 2025, so cheap imports that used to enter duty-free now pay duties. If your supplier ships from overseas, duties and customs fees may now land on you or your customer — check the current rate for your product category and add it to your product cost before trusting a margin figure.
Worked Example: $29.99 Product, 100 Orders a Month
| Calculation | Per sale | |
|---|---|---|
| Selling price | $29.99 | |
| Product cost | −$8.50 | |
| Shipping cost | −$3.00 | |
| Payment fee (2.9% + 30¢) | $29.99 × 2.9% + $0.30 | −$1.17 |
| Ad spend per sale | −$6.00 | |
| Profit per sale | $11.32 | |
| Profit margin | $11.32 ÷ $29.99 | 37.75% |
| Break-even ROAS | $29.99 ÷ $17.32 | 1.73x |
| Monthly profit (100 orders) | $11.32 × 100 | $1,132.00 |
| Annual profit | $1,132.00 × 12 | $13,584.00 |
