Dropshipping profit calculator
A product can look like a winner and still lose money. This calculator includes product cost, shipping, payment fees and ad cost per order so you see true profit before you scale.
How to use this tool
- 1Enter your selling price.
- 2Add product cost and shipping from your supplier.
- 3Add payment fees and your expected ad cost per order.
- 4Enter expected orders per month.
- 5Check profit per order and monthly profit before scaling.
How dropshipping profit is calculated
Profit per order equals selling price minus product cost, shipping, payment fees and ad cost per order. Multiply by monthly orders to see monthly profit.
Worked example
A product sells for 39.99 dollars, costs 9.50 dollars plus 4.50 dollars shipping, pays 3% fees of about 1.20 dollars and needs 14 dollars of ads per order. Profit per order is about 10.79 dollars, a net margin of about 27%. At 300 orders a month that is about 3,237 dollars of profit.
Signs a product has healthy economics
- Selling price at least three times landed product cost
- Clear demonstration value that works in video
- Several advertisers running ads for it for weeks or months
- Room for bundles and upsells
Frequently asked questions
What is a good margin for dropshipping?
Many operators aim for a selling price around three times landed cost, which leaves room for ads and a 20% to 30% net margin.
How do I estimate ad cost per order before testing?
Use the Facebook ad cost calculator with conservative CPM and conversion rates, then replace the estimate with real data after testing.
Should I include refunds?
Yes. Add an allowance for refunds and chargebacks to your product cost if they are common in your niche.
How do I find products with good margins?
Search ads in your niche, look for products advertised by several stores for a long time, and check store catalogues with Store DNA.
Is dropshipping still profitable?
It can be with strong creative, fast shipping and good unit economics. Thin margins and slow delivery are the most common reasons stores fail.
See which Facebook and Instagram ads your competitors keep running, the clearest signal of what is profitable in your niche.