Dropshipping Profit Calculator

Instantly calculate your dropshipping profit margins accounting for supplier costs, ad spend, and platform fees. Updated for 2026.

Quick answer

On a $35 dropshipped product with a $12 supplier cost, a 5% platform fee, and $5 of ad spend per order, you keep $14.93 (42.7% margin). Break even at $18.78 — below that, every order costs you money.

Quick-start scenarios

Your saved scenarios

Stored in this browser only — nothing is uploaded, and there is no account to create.

Revenue per order

What the buyer pays you for one order.

Dropshipping charges its percentage fees on this too.
Taken off the sale price before fees are calculated.

Costs per order

Costs you pay every time an order ships.

Charged on the goods value, not the sale price.

Monthly

Charged monthly, whatever your order volume — kept out of per-order margin.

Assumes one item per order.

Dropshipping settings

How Dropshipping treats your account, and how often orders come back.

Your channel's cut of each order, on top of the gateway.
Each dispute costs the order plus the gateway's dispute fee.
Fees the platform credits back are netted off automatically.

Per order

Order revenue
$25.00
Dropshipping fees
$2.28
Net profit
$6.73
Margin
26.9%
Strong margin

After Dropshipping fees, product and shipping costs, and $5.00 of ad spend per order. Monthly plan and storage costs are handled below.

Where your money goes

Per month at 50 orders
Profit
$336.25 · 26.9%
Platform fees
$113.75 · 9.1%
Cost of goods
$400.00 · 32.0%
Shipping
$150.00 · 12.0%
Ad spend
$250.00 · 20.0%

Monthly totals

Revenue$1,250.00
Dropshipping fees−$113.75
Product and shipping costs−$550.00
Ad spend−$250.00
Net profit$336.25 · 26.9%

Fee detail

Per order

Platform Fee$1.25
Payment gateway$1.03
Total per order$2.28
Break-even price
$17.70

The sale price where one order nets exactly zero — covering percentage fees, per-unit and flat fees, your costs, and this order's share of ad spend.

Orders to cover monthly costs
22

Needed to cover $250.00 of monthly ad spend and fixed costs. You're planning 50.

Ad economics

An order can pay at most its contribution — revenue after fees and variable costs — to win a customer. Spend more than that and the order is bought at a loss.

Max cost per order
$11.73
Break-even ROAS
2.13x
Your cost per order
$5.00
Headroom
$6.73

You can pay up to $11.73 per order in ads and still break even — currently $5.00.

How Dropshipping Profit Works

Dropshipping can be highly profitable, but only if you understand your numbers. Between supplier costs, shipping, marketing, and platform fees, it's surprisingly easy to operate at a loss without realizing it. A clear profit calculation is essential before you scale.

The dropshipping model means you never hold inventory, but you also have less control over costs. Your supplier determines your cost of goods and shipping, while your marketing spend — typically Facebook, TikTok, or Google Ads — is often your largest variable expense. On top of that, if you sell through a marketplace like eBay or Etsy, platform fees can eat 5–15% of your revenue.

Our Dropshipping Profit Calculator helps you see the full picture. Enter your selling price, supplier cost, shipping, and marketing spend to instantly see your profit margin. Adjust the platform fee percentage to match your selling channel, and use the pre-loaded scenarios to model different product and ad spend combinations.

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Frequently Asked Questions

What is a good profit margin for dropshipping?+
Most successful dropshippers aim for a 15–30% net profit margin after accounting for supplier costs, shipping, marketing, and platform fees. High-ticket items often have lower percentage margins but higher absolute profits. Your ideal margin depends on your niche and ad costs.
How much should I spend on ads for dropshipping?+
A common rule of thumb is to allocate 20–40% of your selling price to advertising when starting out. As you optimize your campaigns and build retargeting audiences, you can often reduce this to 10–20%. This calculator helps you experiment with different ad spend levels to find your break-even point.
What platform fees should I expect?+
If you sell on a marketplace like eBay or Facebook Marketplace, expect roughly 5-15% in platform fees. Running your own Shopify store costs $39/month plus 2.9% + $0.30 per transaction. Set the platform fee percentage here to match your channel — it is applied to the order total including any shipping you charge.
How many orders do I need to cover my ad spend?+
That is the number this calculator surfaces as break-even orders. It divides your monthly fixed costs — ad spend plus any recurring platform costs — by the contribution each order makes after fees and product costs. If your contribution per order is zero or negative, no amount of volume rescues the month, and the calculator says so instead of showing an optimistic total.

Related reading

The other 7 calculators

Compare across platforms

Same product, different platforms — and very different take-home. See how this scenario stacks up on the other marketplaces, or read the side-by-side fee table.