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Dropshipping Profit Margin Calculator

Enter your selling price and per-order costs to see your dropshipping profit margin.

How it is calculated

The tool works per order. It adds the three cost fields into one total, cost = supplier + ad + other, then profit = price − cost. Margin is profit ÷ price × 100, so it shows what share of the customer's payment you keep. Markup is profit ÷ cost × 100, so it shows how much you earn on each unit of money spent. The Other field is optional and counts as zero when empty; use it for payment processing, platform fees, packaging or refunds, since there is no separate box for them. The selling price must be above zero, and supplier, ad and other costs cannot be negative; otherwise there is no result. A loss is shown as a negative profit with the sign before the dollar sign (for example -$8.80) and negative percentages. If total cost is zero, markup is shown as 0.00%.

Worked example

Say you sell at 39.99, the supplier charges 14.50, the ad spend attributed to this order is 11.20, and other costs (card fee and packaging) are 3.10. Total cost is 14.50 + 11.20 + 3.10 = $28.80. Profit is 39.99 − 28.80 = $11.19. Margin is 11.19 ÷ 39.99 = 27.98%, and markup is 11.19 ÷ 28.80 = 38.85%. The tool reports a profit of $11.19, a margin of 27.98% and a markup of 38.85%. Margin is the smaller figure here because it divides by the larger number, the price.

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Common mistakes

  • Leaving ad spend out because it is billed monthly. Divide the month's ad spend by the number of orders (cost per acquisition) and enter that per-order figure, otherwise the margin is overstated.
  • Mixing up margin and markup. A 38.85% markup is not a 38.85% margin; when you price from a target margin, work from the margin number.
  • Forgetting payment processing, platform fees, refunds and chargebacks. Put their per-order average into the Other field.
  • Entering the supplier's price without shipping. If the supplier charges separately for delivery, add it to the supplier cost.
  • Entering a price that includes VAT or sales tax. Tax is not income to you, so use the price excluding tax.

Sources

About this calculator

Dropshipping profit lives in a thin gap: you collect the customer's payment at your listed price, but the supplier's cost, payment processing fees, advertising spend and platform fees all come out before what's left counts as profit. Margin (profit ÷ selling price) and markup (profit ÷ supplier cost) describe that same gap from two different angles, and both matter because a healthy-looking margin can still mean a business is unprofitable once ad spend to acquire each customer is factored in — a metric often tracked separately as breakeven ROAS.

This calculator takes your selling price and the costs stacked against a single order — supplier cost, ad spend, transaction fees and any extras — and returns your net profit, margin percentage and markup percentage per order. Dropshipping store owners running Facebook or TikTok ad campaigns, and e-commerce consultants auditing a client's unit economics use it to see whether a product is genuinely profitable at scale or only looks that way before ad costs are counted.

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