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Dropshipping Profit Calculator

Calculate your dropshipping profit margin after supplier costs, platform fees, shipping, advertising, and returns.

Use this when

You need to validate a dropshipping product before listing it.

Enter your supplier cost, selling price, and platform to see if the product is profitable after all fees, shipping, ads, and returns.

5 platforms supported ad cost modeled return rate included

Product Details

Product Selling Price ($)

Supplier Cost ($) Your cost from AliExpress, Spocket, CJ Dropshipping, etc.

Shipping Cost to Customer ($)

Selling Platform

Platform Fee (%) Auto-filled from platform selection. You can override.

Payment Processing (%)

Payment Flat Fee ($)

Advertising Cost Per Unit ($) Total monthly ad spend divided by units sold. Set to 0 if no paid ads.

Return Rate (%) Ecommerce average: 5-15%. Apparel can be 20-30%.

Monthly Orders

Profit Breakdown

Platform Fee

$0.00

Payment Processing

-$1.17

Supplier Cost

-$8.00

Shipping Cost

-$3.50

Ad Cost Per Unit

-$3.00

Return Cost (estimated)

-$1.50

Net Profit Per Order

$12.82

Profit Margin

42.7%

Monthly Revenue

$2,999.00

Estimated Monthly Profit
$1,282.00

Dropshipping Profit Factors

Supplier Cost: The price you pay your supplier per unit. This is typically 30-50% of your selling price for a healthy margin.
Platform Fees: Vary by marketplace. Shopify charges 0% platform fee (only payment processing), while Amazon charges 15% referral. The platform fee field auto-fills when you select a platform.
Advertising: Most dropshippers spend $3-8 per acquired customer. Without organic traffic, paid ads are mandatory and often the largest cost after COGS.
Returns: Modeled as a percentage of revenue lost to returns. Includes refunded sale price. Actual return costs vary — some suppliers accept returns, others do not.

Interpret the output

Target 20%+ margin after all costs including ads.

Below 15% is risky — one bad month of ad performance or a spike in returns can wipe your profit. If margin is under 10%, the product is not viable for paid acquisition.