Dropshipping Profit Calculator
Calculate dropshipping profit per order and per month after product cost, shipping, ad spend and payment fees — plus your break-even ad cost.
Break-even CPA is the maximum you can pay to acquire a customer before losing money on the order. Estimate only — returns, chargebacks, and apps/subscriptions are not included.
Comprehensive Guide & Formulas
Margins, ad spend & CAC
Key Takeaways & Benchmarks
- ✓Dropshipping profit per order = price − product cost − shipping − ad cost − payment fees.
- ✓Ad spend is usually the largest cost — your break-even CPA equals your per-order contribution margin.
- ✓Healthy dropshipping stores typically target 20–30% net margins after ads.
- ✓Payment processors take ~2.9% + $0.30 per transaction, which matters on low-ticket items.
What this calculator does
This tool calculates your dropshipping profit per order and per month after product cost, shipping, ad spend, and payment processing fees. It also shows your break-even CPA — the maximum you can pay to acquire a customer before an order loses money.
How it works
- 1Enter selling price
What the customer pays for one order.
- 2Add product and shipping costs
What your supplier charges, delivered to the customer.
- 3Enter daily orders and ad spend
Your average volume and what you spend to get it.
- 4Set the payment fee
Typically ~2.9% + $0.30 per transaction.
- 5Read profit and break-even CPA
Per-order profit, monthly profit, and max allowable ad cost.
The formula
Where dropshipping profit comes from
- ▸Product markup: the gap between supplier cost and retail price — aim for at least 3x on the product itself.
- ▸Ad efficiency: CPA below contribution margin is the entire game; creative testing is the lever.
- ▸Order value: bundles and upsells raise average order value without raising ad cost proportionally.
- ▸Repeat buyers: email/SMS flows turn one-time buyers into profitable repeat revenue with near-zero ad cost.
Reading your numbers like a media buyer
Your break-even CPA is the single most important number in dropshipping. If your contribution margin is $18, you can spend up to $18 to acquire a customer and still break even on the first order. Every dollar of CPA below $18 is profit; every dollar above is a loss. Profitable stores typically operate at 60–75% of break-even CPA, leaving a healthy margin of safety.
New sellers often fixate on ROAS, but ROAS without margin context is misleading. A 3x ROAS on a product with a $40 price and $30 in costs is worse than a 2x ROAS on a product with a $40 price and $12 in costs. Always translate ad metrics back to dollars of contribution margin — that's what this calculator does.
As you scale, expect CPA to rise. Broader audiences convert worse than your initial tight targeting, and creative fatigue sets in. Plan for CPA inflation of 20–40% as you scale spend, and only scale while CPA stays comfortably under break-even. For a deeper dive into ad efficiency metrics, the Ad Spend & ROAS Calculator breaks down ROAS and POAS in detail.
| Metric | Healthy range | What it means |
|---|---|---|
| Net margin | 20–30%+ | Profit after all costs including ads |
| CPA vs break-even | 60–75% of break-even | Safety margin on ad spend |
| Contribution margin | $15–$25+ | Dollars left per order before ads |
| ROAS | 2.5x–4x+ | Revenue per ad dollar (context-dependent) |
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Frequently asked questions
How accurate is this dropshipping profit estimate?+
It's a planning estimate based on your inputs. Real results depend on ad performance, return rates, and supplier reliability. Returns and chargebacks — which this calculator doesn't model — can take 5–15% off gross profit in some niches.
What is a good profit margin for dropshipping?+
Healthy dropshipping stores typically target 20–30% net margin after ad spend. Below 15%, there's little room for testing new products or absorbing a bad ad week. Above 30% gives you room to scale aggressively.
What is break-even CPA?+
Break-even CPA (cost per acquisition) is the maximum you can spend to acquire one customer without losing money. It equals your per-order contribution margin: price minus product, shipping, and payment fees. If your actual CPA stays below it, every order is profitable.
How much should I spend on ads for dropshipping?+
There's no fixed budget — spend is governed by your break-even CPA. Start with a test budget of 3–5x your product price per ad set to gather data, then scale winners. Never scale ad spend past the point where CPA exceeds contribution margin.
Is dropshipping still profitable in 2026?+
The generic AliExpress arbitrage model is much harder than it was — ad costs are up and shipping times matter more. What's working: branded stores, unique products, fast local suppliers, and strong creative. The model isn't dead, but 'list a random gadget and run ads' mostly isn't enough anymore.
Dropshipping vs holding inventory — which is better?+
Dropshipping has near-zero upfront cost but thinner margins and less control over shipping and quality. Holding inventory (via Amazon FBA or your own warehouse) improves margins and delivery speed but ties up capital. Model both: the Amazon FBA Profit Calculator and Shopify Profit Calculator cover the inventory side.
What payment fees should I expect?+
Shopify Payments and Stripe typically charge around 2.9% + $0.30 per transaction (rates vary by plan and country). On a $20 order that's roughly $0.88 — over 4% of revenue. It matters most on low-ticket products.
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