Calculate your true dropshipping profit, ROI, and break-even price by accounting for supplier cost, platform fees, advertising, and shipping.
Net Profit = Sale Price − (Supplier Cost + Platform Fee + Ads + Shipping + Returns + Chargebacks)
ROI = (Net Profit ÷ (Supplier Cost + Ads + Shipping)) × 100
Profit Margin = (Net Profit ÷ Sale Price) × 100
Break-Even Price = Total Cost (the minimum price you must charge to avoid a loss)