Shopify Dropshipping Profit Calculator

Calculate your dropshipping profit per order on Shopify. Enter your supplier cost, selling price, and total fees to instantly see your profit margin on every unit sold. Unlike traditional retail, dropshipping businesses don't hold inventory — your supplier ships directly to the customer — but your margins are typically thinner. Use this calculator to evaluate whether a dropshipping product can support your advertising costs and still generate meaningful profit at scale.

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How Shopify Dropshipping Profit Works

Shopify dropshipping profit is calculated the same way as any product sale: Profit = Selling Price − Supplier Cost − Fees. The key difference is that your supplier cost includes their product price plus shipping to the customer (since they fulfill the order). Dropshipping typically produces thinner margins (15–30%) compared to traditional retail because you're paying a premium for the fulfillment convenience. Most successful Shopify dropshippers compensate with higher-priced products, strong branding, and efficient paid advertising. Factor your average ad cost per order into the fees field to see your true net profit after customer acquisition. Use our Shopify Revenue Calculator to project monthly revenue once you have your sales volume dialed in.

Frequently Asked Questions

What profit margin is realistic for Shopify dropshipping?

Typical Shopify dropshipping margins before advertising range from 20–40%. After accounting for paid ads on Meta or TikTok, net profit margins often fall to 10–20%. Products with strong organic or influencer traffic can maintain higher net margins. Anything below 10% net is very difficult to scale sustainably.

Should I include my ad spend in the fees field?

Yes. Calculate your average advertising cost per order (total monthly ad spend ÷ monthly orders) and add it to your fees. This gives you your true net profit per order, which is the number that determines whether your dropshipping business is actually profitable.

What is a good supplier cost to selling price ratio for dropshipping?

Many dropshippers target a 3x markup — selling for 3 times their supplier cost — to ensure enough margin for fees and advertising. At a 3x markup, your supplier cost is about 33% of your selling price, leaving room for a 20%+ net margin after fees and modest ad spend.

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