Dropshipping Profit Margin Calculator
Find your true dropshipping profit after product, shipping and ad costs.
Enter your numbers
Example: 30
Example: 100
Example: 10
Example: 5
Example: 500
Recent
Formula
How the calculation works
Revenue is the selling price times units, and the unit cost adds the product and shipping costs.
The total cost multiplies the unit cost by units and adds the ad spend, giving the profit after everything.
The margin is that profit as a share of revenue, which shows how much room there is for error.
Common mistakes
- Leaving out the ad spend, which for many dropshipping stores is the largest single cost.
- Forgetting return and refund rates, which quietly cut the real margin.
When to use it
- Use it to check whether a dropshipping product clears a profit after ads.
- It is not a supplier quote; it uses the costs you enter.
Worked example
100 units at 30, product 10, shipping 5 and 500 of ads give revenue 3000, profit 1000 and a 33.33% margin.
Common questions
Are ads included?
Yes, total ad spend is subtracted, since it is a real cost of each sale.
What margin should I aim for?
Dropshippers often want 20 to 30%, but the safe figure depends on your return rate.
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