CCalclabhub

Ecommerce & Marketplaces

Net profit per sale

The contribution left after every cost except the ad, minus the ad.

The Formula

Net = Retail - Cost - Shipping - Platform - Payment - Ad

The contribution left after every cost except the ad, minus the ad.

SymbolMeaning
RRetail price
CSupplier cost
SShipping
PPlatform fee
FPayment fee
AAd spend

What Each Symbol Means

Rcurrency

Retail price

What the customer pays.

Ccurrency

Supplier cost

What the supplier charges.

Scurrency

Shipping

Shipping charged by the supplier.

Pcurrency

Platform fee

Marketplace or store commission.

Fcurrency

Payment fee

Processor percentage plus fixed fee.

Acurrency

Ad spend

Cost to acquire one sale.

See It Worked With Real Numbers

A formula on its own does not tell you which number goes where. The how to calculate dropshipping profit page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.

Where This Formula Appears

This equation is the working core of How To Calculate Dropshipping Profit, filed under Business. Every number the guide produces comes from substituting into this one line.