Dropshipping Profit Calculator
Dropshipping has no inventory cost, so the ad that wins the customer is usually the biggest line item. Profit lives or dies on the gap between what the customer pays and what the supplier, the platform, the payment processor and the ad network take.
Net profit per sale
$12.83
- Profit margin
- 32.08%
- Break-even ad per sale
- $21.83
- Monthly net profit
- $1,924.59
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
Net per sale = Retail - Supplier cost - Shipping - Platform fee - Payment fee - Ad spend
- Retail
- Price the customer pays
- Supplier cost
- What the dropship supplier charges
- Ad spend
- Cost to acquire one sale
- Platform fee
- Marketplace or store commission
How to check the result by hand
- 1
Add up the variable costs
Supplier cost, shipping, platform fee and payment fee all come off the retail price before the ad is considered.
- 2
Work out the payment fee
Apply the processor's percentage to the retail price and add the fixed fee per transaction.
- 3
Subtract the ad spend
Take the cost to acquire one sale off the contribution to reach the net profit.
- 4
Compute the margin
Divide the net profit by the retail price to express it as a percentage.
- 5
Find the break-even ad
Add the ad spend back to the net profit to see the ceiling for future bids.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate Dropshipping Profit page.