Dropshipping Profit Calculator — Margins & ROAS | ToolsHacks
📦

Dropshipping Profit Calculator

Know your real numbers before you scale. Enter product cost, shipping, price, and ad spend to see profit per unit, margin, break-even ROAS, and the maximum you can spend on ads without losing money.

Average ad spend to get one order.

Payment processor + platform fees (e.g. Stripe 2.9% + 30¢, Shopify/PayPal similar).

💡 Estimates based on the numbers you enter. Real-world results vary with refunds, chargebacks, taxes, and fluctuating ad performance — always test with real data before scaling.

How it works

1

Enter your costs — what you pay the supplier, shipping, and the average ad cost to win one sale.

2

Set your selling price and transaction fee % (2.9% is the common default).

3

Hit Calculate Profit — get profit per unit, margin %, break-even ROAS, max ad spend, and a visual cost breakdown.

Frequently Asked Questions

What is a good profit margin for dropshipping?

Most sustainable dropshipping stores target a 20–30% net margin after all costs including ads. Below 15% you're one bad ad week away from losing money; above 30% gives you real room to scale.

What is break-even ROAS?

Break-even ROAS is the return on ad spend at which you make exactly $0 profit per sale. It's calculated as selling price ÷ (price − product cost − shipping − fees). If your actual ROAS is above this number, you're profitable; below it, you're losing money on every order.

How do I calculate max ad spend per sale?

Subtract everything except ads from your price: max ad spend = selling price − product cost − shipping − transaction fees. Spend a dollar more than this per sale and that order loses money.

Should ad cost be included in profit margin?

Yes — ads are usually the biggest variable cost in dropshipping. A product can look great at 40% "product margin" and still lose money once ad spend is included. This calculator always includes ad cost in the final margin.

Why does my store show sales but no profit?

The usual culprits: ad cost per sale creeping above your max, refunds and chargebacks, or fees you didn't account for (currency conversion, app subscriptions, taxes). Track cost per sale weekly, not just revenue.

Related Tools

Sell smarter with free tools

From fees to taxes to ROI — our free e-commerce calculators help you price products with confidence.

Browse All Tools