Why enter both units and orders?

Per-unit supplier costs scale with items, while fixed payment fees usually scale with transactions.

Does the result include tax?

No. Tax collection, deductibility, nexus, VAT, customs, and income tax require jurisdiction-specific treatment.

Can profit or margin be negative?

Yes. The result is negative whenever modeled total costs exceed revenue.

Dropshipping Profit, Fees, and Margin Calculator

See the full modeled path from gross sales to profit.

Revenue and profit

Itemized cost stack

Profit per unit and margin

CurrencyUnits soldSelling price per unitSupplier product cost per unitSupplier shipping cost per unitOrdersUsed for fixed payment fees; cannot exceed units sold.Platform feePercentage of modeled gross revenue.Payment percentage feeFixed payment fee per orderAdvertising costTotal ad spend for the modeled sales scope.Refunds and chargebacksTotal refund, dispute, and chargeback loss not already removed from revenue.

How to Calculate Dropshipping Profit

Keep sales, costs, fees, advertising, and refunds within the same scope.

Choose one display currency; no conversion is performed.

Do not net costs twice

If reported revenue is already net of refunds or a fee is included in another entered amount, exclude that item from the separate field.

What Dropshipping Profit Includes

Revenue is units multiplied by selling price. Product and supplier shipping scale with units. Platform and percentage payment fees use gross modeled revenue; fixed payment fees use orders. Advertising and refund/chargeback losses are entered totals. The result can be negative.

Dropshipping Profit Examples

Positive campaign economics

Sales and cost assumptions

unitsSold:100

sellingPricePerUnit:30

productCostPerUnit:12

shippingCostPerUnit:4

orders:80

platformFee:5

paymentFee:2.9

paymentFixedFeePerOrder:0.3

advertisingCost:500

refundsAndChargebacks:100

Profit and margin

539 profit; 17.9667% margin

Revenue is 3,000 and the disclosed cost stack totals 2,461.

Loss on one order

Sales and cost assumptions

unitsSold:1

sellingPricePerUnit:10

productCostPerUnit:12

shippingCostPerUnit:1

orders:1

platformFee:0

paymentFee:0

paymentFixedFeePerOrder:0

advertisingCost:0

refundsAndChargebacks:0

Profit and margin

-3 profit; -30% margin

Product and shipping cost exceed gross revenue.

Reconcile fee bases

Platforms may apply fees to taxes, shipping charged to customers, discounts, or other bases this simplified model does not infer.

Frequently Asked Questions

No. This model subtracts selected selling, advertising, refund, and payment costs in addition to product and shipping.

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Dropshipping Profit Formulas

The model exposes each cost rather than applying a generic margin assumption.

Formula

revenue = units sold × selling price per unit

Revenue

revenue = units sold × selling price per unit

Payment fees

revenue × payment fee % + orders × fixed payment fee

Total costs

product + shipping + platform + payment + ads + refunds/chargebacks

Profit margin

profit ÷ revenue × 100

Scientific Background

Assumptions: constant unit prices and costs, fee percentages applied to gross revenue, one currency, and orders no greater than units. Limitations: the model excludes taxes, currency conversion, apps, subscriptions, labor, samples, returns processing, reserves, supplier failures, discounts, and fee-tier rules unless included in an entered field.