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Dropshipping ROI Calculator
Estimate daily profitability, profit margin, and ROI based on your operational and marketing inputs.
Enter Your Details
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Results
Performance Summary
Expected Orders:0
Valid Orders (after returns):0
Net Revenue:$0.00
Total Cost:$0.00
Profit:$0.00
Profit Margin:0.00%
ROI:0.00%
Your business is profitable. Consider scaling with care.
Enter your business details and click "Calculate ROI" to see results
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This calculator does not store or collect any of your input data.
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User Guide
This calculator helps you quickly estimate your daily orders, revenue, costs, profit, profit margin, and ROI based on your store’s operation and marketing data. It also provides business insights to help you clearly understand whether your dropshipping business is profitable.
1. Input Field Instructions
These data points reflect key operational factors in your dropshipping or eCommerce business model, and the calculator will use them to estimate your profitability accurately.
Selling Price ($)
The retail price you charge customers for each product. In dropshipping, pricing strategy is critical — it determines not only your margin but also how competitive your offer appears in the market. A well-set price should balance perceived value and realistic profit expectations.
Product Cost per Unit ($)
The amount you pay your supplier for each unit of product. This is usually your wholesale or sourcing cost from AliExpress, Alibaba, or other vendors. Lower product costs or better supplier negotiations can dramatically improve your overall profit margin.
Fulfillment Cost per Unit ($)
All the costs involved in delivering the product to your customer — shipping, packaging, and handling. In dropshipping, these costs are often charged by the supplier or logistics partner and can vary based on region, shipping speed, and product size.
Transaction Fee (%)
The percentage taken by your payment gateway (like PayPal, Stripe, or Shopify Payments) for processing each transaction. These fees are standard in eCommerce and can range from 2% to 4%, depending on the platform and currency used.
Platform Fee (%)
A commission or service fee charged by your sales platform, such as Shopify, Etsy, or Amazon. This cost reflects the platform’s usage or sales-based fee structure and should be included in your profitability calculation to avoid overestimating your margins.
Ad Spend per Day ($)
Your daily advertising budget — typically spent on Facebook, TikTok, Google Ads, or other marketing channels. In dropshipping, ad spend is often one of the biggest expenses, and optimizing your cost per acquisition (CPA) can significantly boost ROI.
Expected Visitors per Day
The number of users visiting your online store each day. Traffic volume directly impacts your sales potential — more visitors mean more opportunities to convert. If you’re using paid ads, this metric usually depends on your ad budget and targeting quality.
Expected Conversion Rate (%)
The percentage of visitors who complete a purchase. For dropshipping stores, a healthy conversion rate typically ranges from 1% to 3%. Improving conversion through better product pages, trust signals, and user experience can dramatically increase profitability without increasing ad spend.
Return Rate (%)
The percentage of orders that get refunded or returned by customers. A high return rate may indicate product quality issues, misleading product descriptions, or poor logistics. Keeping this rate low is crucial for maintaining profit and positive customer feedback.
2. Output Results Explained
After calculation, you’ll see these key performance metrics:
| Field | Description |
|---|---|
| Expected Orders | Estimated daily order quantity (rounded down) |
| Valid Orders | Orders after accounting for returns |
| Net Revenue | Total sales revenue in USD |
| Total Cost | All costs including product, fulfillment, ads, and fees |
| Profit | Net profit (green = profitable, red = loss) |
| Profit Margin | Net profit as a percentage of revenue (green = healthy, red = poor) |
| ROI | Investment return ratio:≥50% (green), 0–50% (yellow), <0 (red)If cost = 0 and profit > 0, ROI = “∞” |
3. Example Calculation
Example Scenario:
- Selling Price: $40
- Product Cost: $12
- Fulfillment Cost: $4
- Transaction Fee: 2.9%
- Platform Fee: 5%
- Ad Spend: $100/day
- Visitors: 2,000/day
- Conversion Rate: 2.5%
- Return Rate: 3%
Calculation Results:
- Expected Orders = 2,000 × 2.5% = 50
- Valid Orders = 50 × (1 − 3%) = 48.5 → 48 displayed
- Net Revenue = 48.5 × $40 = $1,940
- Total Cost = (12 + 4) × 48.5 + 100 + (1,940 × 2.9%) + (1,940 × 5%) = $1,029.26
- Profit = 1,940 − 1,029.26 = $910.74 (green – profitable)
- Profit Margin = 46.94% (excellent)
- ROI = 88.54% (healthy)
Business Tip:
“Excellent performance. Consider scaling ads and expanding reach. ROI suggests a healthy return — keep refining your strategy!”
FAQs
1. What does the Dropshipping ROI Calculator do?
This calculator estimates your daily orders, revenue, total costs, profit, profit margin, and ROI based on your store’s traffic and operational inputs.
It helps you quickly determine whether your dropshipping store is profitable and how efficiently your marketing budget is being used.
2. What inputs do I need to calculate ROI?
You will be asked to provide essential business metrics, including:
Selling price
Product cost
Fulfillment cost (shipping + packaging)
Transaction fee %
Platform fee %
Daily ad spend
Daily visitors
Conversion rate
Return rate
These inputs allow the calculator to simulate real-world store performance.
3. What is considered a “good” ROI for a dropshipping store?
General benchmarks:
- 50%+ ROI → very strong (profitable and scalable)
- 10%–50% ROI → acceptable, needs optimization
- 0%–10% ROI → borderline, risky to scale
- Below 0% → losing money
4. How does the calculator estimate daily orders?
Orders are based on your traffic and conversion rate:
Orders = Visitors × Conversion Rate
Example:
1,000 daily visitors × 2% = 20 orders
After subtracting returns:
20 × (1 − 3%) = 19 valid orders
5. What costs are included in Total Cost?
The calculator includes:
Product cost
Fulfillment cost
Transaction fees
Platform fees
Daily ad spend
Return loss impact
This ensures your profitability estimate is realistic—not overly optimistic.
6. How can I improve my ROI?
Here are the most effective strategies:
Reduce Costs:
Negotiate better supplier prices
Optimize or reduce fulfillment cost
Lower transaction/platform fees
Improve return policy & product quality
Increase Revenue:
Increase selling price (smart pricing, bundles)
Improve conversion rate with better landing pages
Add upsells and cross-sells to raise AOV
Improve ad targeting to reduce CPA
Even small improvements can significantly boost ROI.