See your real per-sale profit and the ad spend you can afford before a dropshipping store turns unprofitable.
Estimates only. This tool is for planning and education — not financial, tax, or legal advice. It models the numbers you enter; real platform fees, taxes, and exchange rates vary. Verify with your own statements before making decisions.
A $39.99 product costing $11 with $4.50 shipping, ~3% fees, and a $9 ad. After fees (~$1.60) you net about $14.89 per sale — a 37.2% margin. Your break-even ad spend is ~$23/sale.
Dropshipping has no inventory cost, but the ad that wins the customer is often your biggest line item. Profit lives or dies on CAC versus the contribution margin left after product, shipping, and fees.
Net/sale = Price − COGS − Shipping − (Price × Platform%) − (Price × Pay% + Pay fixed) − Ad spend
What is a healthy margin for dropshipping?
Because ad spend is high, many profitable stores run 20–40% net. If fees + ad exceed your markup, raise price or cut CAC.
Why does break-even ad spend matter?
It is the ceiling for what you can pay to acquire a customer and still not lose money — compare it to your real CAC.
Should I include returns?
Yes, indirectly. If 5% of orders refund, model it by lowering units or adding to 'product cost' proportionally.