Dropshipping profit calculator
Enter what you sell a product for and what it costs you. See your profit per sale, your margin, the most you can spend on ads per sale, and the price you need for the margin you want.
- Profit margin
- 23.08%
- Return on costs
- 30.00%
- Total fees per sale
- $5.07
- Break-even ad cost per sale
- $11.92
- Price for a 25% margin
- $30.96
- Monthly profit at 100 sales
- $692.16
- Product $8.50
- Shipping $4.00
- Fees $5.07
- Ads $5.00
- Other $0.50
- Profit $6.92
How the calculation works
Every sale pays for the product, the shipping, the marketplace and payment fees, your advertising and any other per-order costs. What is left is your profit.
- Fees = price × (marketplace % + payment %) + fixed payment fee
- Profit = price − product − shipping − fees − ads − other costs
- Margin = profit ÷ price. Return on costs = profit ÷ everything you spent on the sale.
- Break-even ad cost is the profit before advertising: spend more than this on ads per sale and you lose money.
Good products usually keep a 20–30% margin after ads. Find candidates with real, growing sales on the trending products pages, then check them here before you order stock.
Frequently asked questions
What is a good profit margin for dropshipping?
Most sellers aim for 20–30% after every cost, advertising included. Below about 15% there is little room for returns, price changes or rising ad costs.
Which fees should I include?
The marketplace or platform fee (for example eBay's final value fee, or your store platform's transaction fee), payment processing (often about 3% plus a fixed amount), and any per-order app or packaging costs.
How do I use the break-even ad cost?
It is the most you can pay for advertising per sale without losing money. If your ads cost more per purchase than this, the product is not profitable at that price.