Dropshipping Profit Calculator
Find your profit per order after supplier price, shipping, fees, ad cost and refunds, plus the most you can pay for ads.
Your numbers
Your result · updates as you type
Profit per order after ads and refunds
$6.93
17.3% of a $39.99 order. At 200 orders a month that's $1,386.
- Break-even ad cost per order
- $18.93
- Break-even ROAS
- 2.11×
- Monthly profit
- $1,386
Healthy per order. Keep an eye on CPA as you scale: it usually rises as you reach colder audiences.
Breakdown
- Customer pays
- $39.99
- Refunds (8% of orders)
- −$3.20
- Supplier product + shipping
- −$16.00
- Payment and other fees
- −$1.46
- Store plan and apps per order
- −$0.40
- Profit before ads
- $18.93
- Ad cost per order
- −$12.00
- Profit per order
- $6.93
How dropshipping profit is worked out
In dropshipping, two costs decide everything: what you pay for ads to get each order, and the orders you refund. You usually pay the supplier whether or not the customer keeps the product, so refunds cost more than in a normal store.
Example: the default numbers
- Selling price
- $39.99
- Refunds (8% of orders)
- −$3.20
- Supplier product + shipping
- −$11.50 − $4.50
- Payment fee (2.9% + 30¢)
- −$1.46
- Store plan and apps ($80 ÷ 200 orders)
- −$0.40
- Ad cost per order
- −$12.00
Profit before ads is $18.93, so that's your break-even ad cost per order. After $12 of ads you keep $6.93 an order. Break-even ROAS is 39.99 ÷ 18.93 = 2.11×.
Using the numbers
- 01
Set your ad ceiling
Give your ads manager the break-even CPA or ROAS. Anything above it loses money, even if revenue looks good.
- 02
Check the refund bars
They show profit at each refund rate. If a few extra points of refunds wipe you out, fix product quality or delivery times before scaling.
- 03
Pick your payment setup
On Shopify, a third-party gateway adds Shopify's transaction fee (2% on Basic). Enter it in Other fees on the sale if that's your setup.
Costs people forget
- Currency conversion when you pay a supplier in another currency.
- Chargebacks on disputed orders, which cost the order and a dispute fee.
- Your time and customer service, which grow with every order.
Questions people ask
What's a good profit margin for dropshipping?
Look at profit per order after ads, not the markup on the supplier price. A product with a 3× markup can still lose money once ad cost per order is paid.
What is break-even ROAS?
Revenue divided by profit before ads. If your ads return less than this, each sale loses money. With the default numbers it's 2.11×.
Do suppliers refund you when a customer returns an item?
Often not for a change of mind. Some cover faulty or lost items. Enter the share you get back in Cost you get back from the supplier on refunds.
Should I charge for shipping or build it into the price?
Test both. The profit is similar if the total the customer pays is the same, but free shipping often converts better on social ads.
Related tools
Want this builtinto your store?
I'm Emmanuel, a Shopify and WooCommerce developer. If this tool pointed at something you'd rather have fixed for you (a faster store, cleaner product data, a migration, a custom feature), send me a note.
Emmanuel Asika
Shopify & WooCommerce developer, Dublin
I build and fix online stores: new builds, migrations, speed, SEO and the custom bits apps can't do.
Last reviewed 30 September 2026.
Sources: Shopify: Pricing (US) · Shopify Help Center: Third-party transaction fees