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Dropshipping profit calculator

Put in your price and costs to see profit per order, your margin, the break-even ROAS for your ads and the most you can pay to win one sale.See your profit per order, your margin and your break-even ROAS.

Runs in your browser. Nothing you enter is sent anywhere.

  • Fees, refunds and ads included
  • Break-even ROAS and CPA
  • Runs in your browser

How the profit calculator works

  1. 01

    Enter the price and costs

    Selling price, shipping you charge, product cost and shipping you pay the supplier.

  2. 02

    Add fees, refunds and ads

    Payment fees, the share of orders you refund, and what you pay in ads for each order.

  3. 03

    See what’s left

    Profit per order and per month, your margin, and the break-even points for your ad spend.

What the results mean

Profit per order

What’s left from one order after product cost, shipping, payment fees, refunds, extra costs and ad spend.

Margin

Profit as a share of what the customer pays. It shows how much room you have when costs rise.

Break-even CPA

The most you can spend on ads to win one order without losing money. Above it, every sale costs you.

Break-even ROAS

Revenue per order divided by the break-even CPA. Your ads need a return on ad spend above this number to make a profit.

Refunds

Refunded orders are treated as lost revenue, while product, shipping and payment fees are still paid. That’s how most dropshipping refunds work.

Monthly profit

Profit per order × orders per month, minus your fixed monthly costs, such as your Shopify plan and apps.

How to use the numbers

  1. 01

    Test a product before you run ads

    If the break-even ROAS is above what your ads usually return, change the price or the product before you spend anything.

  2. 02

    Set a ceiling for ad tests

    Use the break-even CPA as your stop-loss. Kill an ad set once its cost per purchase stays above it.

  3. 03

    Price with refunds in mind

    Move the refund rate up a few points. If profit disappears, the price is too thin.

What the calculator leaves out

  • Taxes, duties and currency conversion.
  • Repeat purchases. A customer who buys again lowers your real cost per sale, so a loss on the first order can still pay off.
  • Cash flow: suppliers and ad platforms are paid before payouts arrive.

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Questions about the Dropshipping Profit Calculator

How the numbers are worked out and where the rates come from.

Ask me about your store
What is a good profit margin for dropshipping?

There isn’t one number that works for every product. What matters is how much margin is left after ads, because ad costs change from week to week. Use the break-even ROAS to see how much room you have.

What is break-even ROAS?

The return on ad spend at which an order makes zero profit. If your break-even ROAS is 2.5, every $1 of ads needs to bring in $2.50 of sales just to cover costs. Anything above that is profit.

Should I include the shipping I charge customers?

Yes, if you charge it. It’s part of what the customer pays, and payment fees apply to it too. Put the shipping you pay the supplier in the costs.

How do refunds affect profit?

In dropshipping you usually refund the customer without getting the product back, so you lose the sale but still pay for the product, shipping and payment fees. A 5% refund rate can take a noticeable bite out of a thin margin.

Where do I find my payment fees?

In Shopify admin under Settings > Payments. The Shopify fees calculator shows the rates by plan.

Is this a Shopify profit calculator or a dropshipping calculator?

Both. It works for any Shopify store, whether you hold stock or dropship. Enter your price, product cost, shipping, fees and ad spend to see your profit per order.