Profit Margin Calculator
Enter your product cost, shipping and fees below. This tool works out your profit per unit, real margin percentage, breakeven order volume and the maximum ROAS-negative point before you lose money.
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Calculations happen entirely in your browser. Nothing you enter here is sent anywhere.
How this calculator works
Most beginner pricing mistakes come from looking only at product cost versus selling price and ignoring the rest. This tool adds back the pieces that actually determine whether an order is profitable: payment processor fees (usually a percentage plus a flat fee), the shipping cost from your supplier, and the ad spend it took to acquire that specific order. What's left after all four is subtracted is your real profit per unit.
Step-by-step usage guide
- Enter the price you're charging customers in Selling price.
- Enter what the supplier charges you in Product cost and Shipping cost — check your supplier dashboard for the exact figures rather than estimating.
- Enter your payment processor's percentage and flat fee (Shopify Payments and PayPal both publish these).
- Enter your average ad spend per order — total ad spend for a period divided by orders in that period.
- Enter monthly fixed costs like your Shopify plan and app subscriptions to see how many units you need to sell just to cover overhead.
Frequently asked questions
What's a healthy margin for dropshipping?
Many dropshippers target 20–40% net margin after all fees and ad spend, though this varies heavily by niche and price point. Lower-ticket impulse items often need higher margins to survive return rates and ad cost fluctuation.
Why is my breakeven ROAS important?
Breakeven ROAS tells you the minimum return on ad spend where you stop losing money on a sale. Any campaign performing below that number is burning cash regardless of how much revenue it's generating.
Does this account for returns or chargebacks?
No — this calculator estimates margin on a completed, non-returned sale. Build in a buffer for your expected return rate separately, since it varies by product category.