Calculate your profit margins, monthly revenue, and ROI before you start selling. Know your numbers — don't guess.
Transaction fees based on Shopify Basic plan (2.9% + $0.30). Actual fees may vary by plan and region.
This calculator helps you figure out if a product is worth selling before you commit. Enter your supplier cost, your selling price, and shipping — the calculator handles the rest.
Step 1: Find your product cost on AliExpress, CJ Dropshipping, or your supplier's site. This is what you pay per unit when a customer orders.
Step 2: Set your selling price. A common rule of thumb is 2.5-3x your product cost. If the product costs $8, price it at $20-$24.
Step 3: Add shipping costs. If you offer "free shipping," you're absorbing this cost — factor it into your margin calculation.
Step 4: Add your expected monthly orders and ad spend to see your projected monthly profit. This is the number that actually matters.
The 3x Rule: Price your product at 3 times the total cost (product + shipping). This gives you room for ad spend while maintaining a healthy margin.
Bundle Products: Selling a "kit" or "set" lets you charge more while the perceived value increases faster than your costs. A phone case + screen protector bundle can have 50%+ margins.
Free Shipping Threshold: Offer free shipping on orders above a certain amount. This increases average order value and helps cover shipping costs across multiple items.
A healthy dropshipping profit margin is 20-40%. Below 15% makes it hard to cover ad costs and stay profitable. Above 40% is excellent but less common. Most successful dropshippers aim for 25-35% after all costs.
Dropshipping profit = Selling Price - Product Cost - Shipping Cost - Transaction Fees - Ad Spend. Our calculator does this automatically and shows your profit per unit, margin percentage, and monthly projections.
This calculator includes product cost (from your supplier), shipping cost per order, Shopify transaction fees (2.9% + $0.30 on the Basic plan), and optional monthly ad spend. It does not include Shopify's monthly subscription fee ($1-$39/month).
Beginner dropshippers typically earn $200-$2,000/month in profit within their first 3-6 months. Experienced sellers with proven products and optimized ads can make $5,000-$50,000/month. Results depend on niche, marketing, and consistency.
Yes, always. Many beginners calculate profit without ad costs and think they're making money when they're actually losing it. Include your total monthly ad spend to get an accurate picture of real profitability.
On Shopify's Basic plan, transaction fees are 2.9% + $0.30 per transaction when using Shopify Payments. Higher plans have lower fees (2.6% + $0.30 on Shopify, 2.4% + $0.30 on Advanced). Third-party payment gateways add an additional 2% fee.
Now that you know your margins, build your store and start making money.