Dropshipping Profit Margin Calculator

Calculate your potential profit margin, break-even point, and optimal selling price for your dropshipping business.

Enter Your Details

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Results

Financial Summary

Daily Revenue: $0.00
Total Costs: $0.00
Net Profit: $0.00
Profit Margin: 0.00%

Business Metrics

Break-even ROAS: 0.00x
Target Selling Price: $0.00

Your business is profitable. Consider optimizing your ad spend to increase your profit margin.

Enter your business details and click "Calculate" to see your results

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Why This Dropshipping Profit Margin Calculator Works for You

Why This Dropshipping Profit Margin Calculator Works for You

Most sellers fly blind with pricing: they set a price based on competitors, pour money into ads, and only realize they’re losing money months later. Our free Dropshipping Profit Margin Calculator helps you break down your costs and see your true profit margin in seconds.

Simply enter your selling price, supplier cost, shipping fee, transaction fees, and ad spend—and the calculator instantly shows:
  • Your daily net profit
  • Your dropshipping profit margin %
  • Your break-even ROAS (return on ad spend)
  • The ideal selling price to hit your target margins

Whether you sell on Shopify, Etsy, Amazon, or WooCommerce, this dropshipping calculator gives you the clarity you need to price products correctly and keep your business profitable.

No more guesswork—just data-driven decisions to help you grow.

FAQ: Dropshipping Calculator & Profit Margins

1. What is a dropshipping profit margin?

Dropshipping profit margin is the percentage of profit you earn after subtracting all costs (supplier price, shipping, ads, transaction fees) from your selling price. For example, if you sell a product for $40 and your total costs are $30, your profit is $10 and your margin is 25%.

2. How do I use this dropshipping calculator?

Enter your:

  • Selling price
  • Product cost (supplier)
  • Shipping cost per item
  • Transaction fees (e.g. Stripe, PayPal)
  • Ad spend per order
  • Units sold per day
  • Target Profit Margin

The calculator will automatically display your revenue, total cost, net profit, your dropshipping profit margin %, your break-even ROAS and target price.

3. What is break-even ROAS and why is it important?

Break-even ROAS (Return on Ad Spend) tells you the minimum advertising efficiency you need to avoid losing money. For example, if your break-even ROAS is 2.5, it means you must generate $2.50 in sales for every $1 you spend on ads—anything lower means you’re operating at a loss.

This metric is critical for dropshippers running Facebook Ads, TikTok Ads, or Google Ads, because it helps you decide whether your campaigns are profitable or need adjusting.

4. Why is knowing my dropshipping profit margin important?

Because pricing too low means you’ll lose money even if you sell a lot. Knowing your profit margin helps you:

  • Set competitive but profitable prices
  • Scale ads without burning cash
  • Identify which products are worth keeping

5. What’s a good profit margin for dropshipping?

Most successful dropshippers aim for 20–40% profit margins per product. However, it depends on your niche, competition, and ad costs. High-ticket products can work with lower margins, while low-cost products usually need higher margins.

6. Can I use this calculator for POD (Print on Demand)?

Yes. Just include the POD production cost as your product cost, and the tool works exactly the same for POD and standard dropshipping models.

7. How can Ship To The Moon help improve my profit margin?

As a leading dropshipping supplier, Ship To The Moon helps you lower costs by providing:

  • Competitive product sourcing from trusted factories
  • Fast, reliable global shipping (reducing refund risks)
  • Branding and packaging to increase product value
  • Seamless store integration for Shopify, Etsy, and Amazon

With better sourcing and logistics, your dropshipping profit margin gets healthier—and your store more scalable.