Dropshipping profit margin calculator
Work out whether a product can actually make money after shipping, payment fees and ad spend. Enter your numbers below to see your margin, your net profit per order and the most you can pay for a sale before you lose money.
Analyse a product free- Profit before ads
- $23.54
- 58.9% margin
- Net profit per order
- $11.54
- 28.8% margin
- Break-even ad cost
- $23.54
- most you can pay per sale
- Break-even ROAS
- 1.70x
- yours: 3.33x
How the calculator works
Everything runs in your browser; nothing you type is sent anywhere. The formulas are simple and worth knowing, because you will use them on every product you test.
- Processing fee = selling price × percentage fee + fixed fee.
- Profit before ads = selling price − product cost − shipping − processing fee − other costs.
- Net profit = profit before ads − ad cost per sale.
- Break-even ad cost = profit before ads. Pay more than this for a sale and the order loses money.
- Break-even ROAS = selling price ÷ profit before ads. You need to earn at least this much revenue per ad dollar to stay level.
Why margin before ads is the number to protect
A product can look healthy on gross margin and still be unprofitable, because the largest cost in a paid-ads business is the ad itself. Profit before ads is your total budget for acquiring a customer. If it is small, there is little room for the ad cost to vary, and a few weak days of ads can turn the whole test negative.
A rough habit many sellers use is to sanity-check that the price leaves comfortable room above product cost and shipping, then test the break-even ROAS against what your ads realistically deliver. If the break-even ROAS is higher than you expect to achieve, the product needs a higher price, a cheaper source or a better angle, not more ad spend.
What the calculator does not know
It uses the numbers you give it, so it is only as good as your inputs. It does not include returns and refunds unless you add an allowance under other costs, it does not model currency conversion or taxes, and it does not know what your ads will actually cost. Use it to pressure-test a product idea, not as a forecast.
Skip the guessing on the inputs
The hard part is not the arithmetic, it is knowing realistic inputs: what competitors charge and what the product costs to source. A TrendHunterNeo report includes an estimated sourcing cost, a selling price, a gross margin and whether ads look viable, alongside competitor pricing, so you start the calculation from market-based numbers.
Frequently asked questions
What is a good profit margin for dropshipping?
There is no single number, because it depends on your ad costs and order volume. What matters is that profit before ads comfortably exceeds what you expect to pay to acquire a customer. Use the break-even ad cost and break-even ROAS in the calculator to test that for your own numbers.
What is break-even ROAS?
Return on ad spend (ROAS) is revenue divided by ad cost. Break-even ROAS is the lowest ROAS at which an order still makes no loss, calculated here as the selling price divided by your profit before ads.
Does the calculator include taxes or returns?
No. It uses only the costs you enter. Add a returns allowance, packaging or app fees under other costs per order, and account for taxes and currency separately.
Is my data saved or shared?
No. The calculation runs in your browser and the numbers are not sent to a server.
Start from real market numbers
Get an estimated sourcing cost, competitor pricing and a margin estimate for any product in about 45 seconds.
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