This dropshipping profit calculator estimates the real contribution and monthly profit of a product after supplier cost, shipping, handling, platform and payment fees, advertising, returns and fixed operating costs.
How it works
The calculator first adjusts expected revenue for the return or refund rate. It then subtracts product, supplier shipping, handling, percentage fees, fixed payment fees, advertising cost and the expected cost of returns. Monthly fixed expenses are deducted from total monthly contribution profit.
The formula
CPA is advertising cost per acquired order. ROAS is revenue divided by advertising spend. Break-even CPA is the maximum advertising cost per order before contribution profit reaches zero. Actual merchant fees and refund policies differ by platform.
Worked example
At a selling price of 150, with a 10% return rate, expected revenue is 135 per order. With the default costs in this calculator, estimated profit is about 21.73 per order and about 1,672.50 per month at 100 orders after 500 of fixed monthly costs.
This is a planning estimate. Enter the fees and return costs that actually apply to your store, payment provider, supplier and advertising channels.
Frequently asked questions
What is break-even CPA?
It is the highest acquisition cost you can pay for one order before that order stops contributing profit.
Why are returns included?
Returns can reduce recognized revenue and create additional handling or logistics costs, so ignoring them can materially overstate product profitability.