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Dropshipping Profit Margin Calculator
Enter what a product costs you and what you sell it for. See your real profit per order after payment fees, ads and refunds.
Payment fee defaults to Shopify Payments Basic online rate (2.9% + $0.30). Change it to match your plan.
Profit per orderThin margin
$2.71- Product and shipping$7.80
- Payment fee$0.88
- Ads$8.00
- Refunds$0.60
- Profit$2.71
Margin14%
Markup2.6x
Break-even ROAS1.87x
What price should you sell at?
Your landed cost is $7.80. Most winning dropshipping products sell at about 3x landed cost, rounded to .99. Tap a price to try it.
Break-even ROAS: the number your ads must beat
Before ads, each order leaves you $10.71. Your ads need to return at least 1.87x in sales for every $1 spent, or you lose money.
Break-even 1.87x
0x1x2x3x4x5x+
Losing moneyProfitable
Raise the price
Every dollar added to price goes straight to profit and lowers break-even ROAS.
Bundle
Two items in one order share one ad cost and one payment fee.
Cut landed cost
Compare suppliers in AliDrop before you import. Small savings add up per order.
Profit margin calculator FAQ
1How do I calculate dropshipping profit?Selling price minus product cost, shipping, payment fees, ad cost per sale and refunds. The calculator above does it for you.2What is a good profit margin for dropshipping?Aim for about $10 or more profit per order and a price around 3x your landed cost, so there is room for ads and refunds.3What is the difference between margin and markup?Markup compares price to cost (a $24.99 item that costs $7.80 has about a 3.2x markup). Margin is profit as a share of the selling price.4What is break-even ROAS?The return on ad spend where profit is exactly zero. Below it, every sale from ads loses money.5What fees does Shopify charge per order?Shopify Payments on the Basic plan charges 2.9% + $0.30 per online card payment in the US. Rates vary by plan and country, so you can edit them above.6How should I price AliExpress products?Start at about 3x landed cost (product plus shipping), rounded to .99, then test.7How does AliDrop help with margins?AliDrop shows supplier cost and delivery time before you import, so you can pick products that leave room for profit.
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How do I calculate dropshipping profit?
How do I calculate dropshipping profit?