Dropshipping Profit Margin Calculator

Calculate profit per order for your dropshipping business.

Selling Price ($)

Supplier / Product Cost ($)

Supplier Shipping Cost ($)

Selling Platform

Advertising Cost per Order ($)

Monthly Orders

Monthly Fixed Costs (hosting, apps, etc.) ($)

Calculate how many orders you need to break even each month.

Selling Price ($)

Total Variable Cost per Order ($)

Monthly Fixed Costs ($)

Formula

Profit per Order = Selling Price - Supplier Cost - Shipping - Platform Fee - Ad Cost. Monthly Net Profit = (Profit per Order x Orders) - Fixed Costs. Break-Even Orders = Fixed Costs / Profit per Order.

Frequently Asked Questions

What is a good profit margin for dropshipping?

A healthy dropshipping profit margin is 15-30% per order after all costs including advertising. Margins below 15% make it difficult to absorb returns and customer service costs. High-ticket dropshipping ($200+) can achieve higher dollar profits even at lower margins.

How much does it cost to start dropshipping?

Starting a dropshipping business typically costs $200-$500 for platform setup (Shopify subscription, domain, basic apps) plus $500-$2,000 for initial advertising. Most costs are variable (product costs, ads) rather than fixed, making it relatively low-risk to start.

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