Dropshipping Profit Margin Calculator
Work out exactly what you make on each sale before you spend a cent on ads. Enter your product cost, shipping and selling price to see your profit per order, margin, markup and the breakeven ROAS your ads have to beat.
How this calculator works
Your landed cost is the product cost plus shipping. From your selling price we subtract that landed cost and the payment-processing fee (about 2.9% + $0.30 per order, typical of Shopify Payments or Stripe) to get your profit per sale — the money left over before you pay for advertising.
- Profit per sale = selling price − product cost − shipping − payment fees
- Profit margin = profit ÷ selling price
- Markup = selling price ÷ product cost
- Breakeven ROAS = selling price ÷ profit per sale
What counts as a good dropshipping margin?
There’s no magic number, but most dropshippers aim for at least a 3× markup and a healthy contribution margin so there’s room left to pay for ads. Thin margins are the most common way beginner stores quietly lose money: a $5 profit per order disappears the moment your ad cost per order is $6. The breakeven ROAS this calculator shows you is the real test — it’s the ad efficiency you need just to break even, before you make a penny.
Don’t forget advertising
The single biggest hidden cost in dropshipping is customer acquisition. Add your expected ad cost per order in the optional field above to see your true net profit after ads, or use the breakeven ROAS calculator to find the exact ad targets your product needs.
FAQ
Does the profit shown include advertising costs?
No — the profit per sale is your contribution before ad spend. Enter an ad cost per order to see net profit after ads, since advertising is usually the largest variable cost.
What payment fees does it assume?
About 2.9% + $0.30 per order, which is typical for Shopify Payments and Stripe. If your processor charges differently, nudge your selling price to match your real numbers.
What’s the difference between margin and markup?
Markup is measured against your cost (price ÷ cost), while margin is measured against your selling price (profit ÷ price). A 3× markup is roughly a 67% gross margin before fees.
Stop running the numbers one product at a time
SpotPeaks shows profit, margin, breakeven ROAS and genuine EU-warehouse stock on real products gaining traction now — and guides you from picking one to launch day.
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