Dropshipping profit calculator
Work out dropshipping profit per order and its break-even point: product cost, shipping, platform fees and ad spend are all deducted to give the margin, break-even ad budget, break-even ROAS and break-even price.
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Order parameters
Money is computed in integer cents and the fixed cost per order (shipping + platform fee) is split across units with the largest remainder method; ratios are shown rounded to 2 decimals.
Per-order result
199.0080.0025.003.9845.0045.0222.62%115.0225.00 × 1 units45.02 × 1 units90.022.21×153.07180.7360.17What this tool does
- Check whether an order makes money before you scale ads: 199 yuan price, 80 yuan cost, 25 yuan shipping, a 2% fee and 45 yuan of ad spend leave 45.02 yuan of profit — a 22.62% net margin.
- Set a bid ceiling: the break-even ad spend is 90.02 yuan per order, so anything above that loses money on every order. The matching break-even ROAS is 2.21×, which you can compare straight against your ad account.
- Run a sensitivity check before renegotiating costs or shipping: change one number and watch the per-order profit and break-even ad budget move, which tells you whether the negotiation is worth it.
- Multi-unit orders: set the units to 3 and the tool splits shipping and the fixed platform fee per unit with the largest remainder method, so you do not get a flattering per-unit number on an order that actually loses money.
Example
Input
Price 199 yuan/unit, product cost 80 yuan/unit, 25 yuan shipping per order, 0 yuan fixed platform fee, 2% fee rate, 45 yuan ad spend per order, 1 unit per order, 15% target net margin
Output
Order revenue 199.00 yuan, fee 3.98 yuan, profit per order 45.02 yuan, net margin 22.62%, contribution margin per unit 115.02 yuan, break-even ad spend 90.02 yuan per order, break-even ROAS 2.21×, break-even price 153.07 yuan, price for the target margin 180.73 yuan, ad budget for the target margin 60.17 yuan
The break-even ROAS is order revenue divided by the break-even ad spend: 199.00 ÷ 90.02 = 2.21, so any ROAS below that loses money on the order.
Frequently asked questions
How is the break-even ROAS calculated, and can I compare it with my ad account?
It is order revenue divided by the break-even ad spend — that is, the money left for ads after product cost, shipping and platform fees are paid. Ad platforms report ROAS as revenue divided by ad spend, so the definitions line up: a higher ROAS than this number means the order is profitable at the ad level.
Why can the break-even ad spend be negative?
When product cost plus shipping already exceeds the revenue left after fees, the product cannot even cover its own fixed costs, and any ad spend just deepens the loss — the tool shows the break-even ROAS as “—”. Fix the price or the supply chain instead of the ads.
How are fixed costs split across multiple units?
Shipping and the fixed platform fee are split across units with the largest remainder method: 25 yuan over 3 units becomes 8.34 / 8.33 / 8.33, still summing to 25.00. Profit is split by unit price the same way, so the per-unit profits add up to exactly the order profit.
How are amounts and percentages rounded?
Money stays in integer cents and the fee is rounded once for the whole order (199.00 × 2% = 3.98). Ratios keep their exact value internally and are rounded to 2 decimals for display, and so is the ROAS.
What is the target margin field for?
Entering a target margin back-solves the price and the ad budget that hit it. At a 15% target you need a 180.73 yuan price and can spend at most 60.17 yuan per order, so the current 199 yuan price with 45 yuan of ads still has room to scale.
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