Dropshipping Profit Calculator
Advertising counted as a unit cost, because it is one.
Profit per order
$9.22
23% margin
Advertising is 33.8% of the selling price — on a dropshipping model it is a unit cost, not an overhead, because there is no organic channel to fall back on. Every order has to be bought.
How the Dropshipping Profit Calculator works
On a dropshipping model advertising is a unit cost, not an overhead — there is no organic channel and usually no repeat purchase, so every order has to be bought. A profit calculation that treats ad spend as marketing overhead will show a healthy business that is quietly losing money.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What profit should a dropshipping order make?
After supplier cost, shipping, processing and advertising, sellers commonly target 15% to 25% net. Below 10% there is no room for refunds, a rising cost per acquisition, or a bad week.
Why is advertising a unit cost here?
Because it scales one-for-one with orders. A conventional retailer with organic search, email and repeat customers can spread marketing across sales it did not pay for. A dropshipping store generally cannot.
What is usually left out?
Refund and chargeback allowance, the apps and platform subscription, transaction fees on the full amount including tax and shipping, and the cost of testing products that never worked.
What markup do I need?
Around 3× landed supplier cost is the common rule, and the arithmetic supports it — at 3× you have roughly 67% gross to fund 30% to 40% advertising plus everything else.