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Dropshipping Calculator

Calculate dropshipping profit margin, break-even ROAS, and net profit after product cost, shipping, and ad spend.

Formula verified by CalcPro.pro Editorial TeamLast updated May 2025

Product & Cost Details

About This Calculator

Dropshipping profitability is often misunderstood because sellers focus on gross margin and ignore platform fees, payment processing, advertising cost per order, and return losses. This calculator gives you the real net profit per order after every cost, your true ROAS, and whether your ad spend is sustainable for long-term profitability.

How to Use This Calculator

  1. 1Enter the selling price and product cost from your supplier
  2. 2Add shipping cost charged by your supplier
  3. 3Set platform and payment processing fee percentages
  4. 4Enter your average ad spend per order (total ad spend ÷ total orders)
  5. 5Set your return rate and monthly order volume
  6. 6Click Calculate

Formula Used

Net Profit = Sale Price − Product Cost − Shipping − Platform Fees − Processing Fees − Ad Spend per Order − Return Cost | Break-even ROAS = Sale Price / Net Margin Before Ads

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FAQ

Frequently Asked Questions

Common questions about the dropshipping calculator answered.

What is break-even ROAS in dropshipping?+
Break-even ROAS is the minimum return on ad spend needed to avoid losing money. If your product costs $15, shipping $4.50, fees $1.50, and you sell for $49.99, your pre-ad margin is $29 (58%). Break-even ROAS = $49.99 / $29 = 1.72x. Any ROAS above 1.72x is profitable. Most dropshippers target 3–5x ROAS for comfortable margins after accounting for variable costs.
What return rate should I plan for in dropshipping?+
Return rates for dropshipping vary by product category: clothing 15–30%, electronics 8–15%, home goods 5–10%, beauty 5–8%. Higher than average return rates indicate product quality or description issues. Each return typically costs 40–60% of the product revenue due to shipping both ways, restocking, and customer service time. Use 5–10% as a conservative baseline unless you have category-specific data.
Is dropshipping still profitable in 2025?+
Dropshipping remains profitable in 2025 but is significantly more competitive than 2018–2021. Key success factors: unique product selection (avoid saturated commodities), strong creatives for paid social, a branded store experience rather than generic dropshipping look, supplier relationships with fast shipping (5–10 days max for US/EU), and solid post-purchase email flows to improve LTV. Average order values above $40–50 are much easier to make profitable with paid ads.

Dropshipping Profit Benchmarks

A well-run dropshipping store in 2025 targets 15–25% net margin after all costs. On a $49.99 product with $15 COGS and $12 ad spend per order, net profit is approximately $9–12 per order (18–24% margin). Scaling from 100 to 1,000 orders/month at $10 net profit = $10,000/month net income. The key variables are COGS (negotiate lower after 100+ orders), ad efficiency (creative testing), and return rate.

  • Target 3x+ ROAS as your scaling threshold
  • Negotiate supplier prices at 500+ unit monthly volumes
  • Reduce ad spend per order with email/SMS retargeting
  • High-ticket dropshipping ($150+) allows more ad spend and higher absolute margins

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