Dropshipping Profit Calculator

The cost structure is dominated by supplier landed cost and paid ads rather than inventory bought upfront. You rarely hold stock, so there's no bulk cost advantage, and margins are thin — which makes ad efficiency the deciding factor. This tool surfaces that by showing your break-even ROAS next to the profit figure.

Break-even ROAS is the return on ad spend below which every order loses money. It equals your selling price divided by the margin left after supplier cost, shipping, and fees. If your product needs a 4x break-even ROAS and your ads deliver 3x, you are paying to lose money — a trap for new dropshippers scaling too early.

Dropshipping refund and chargeback rates often run higher than standard retail because of long shipping times and customer confusion about origin. Setting an honest refund rate (even 5-10% for slow suppliers) keeps the profit figure realistic. If you recover product on returns — rare in dropshipping — your true refund cost is lower.