Dropshipping margin, with the whole stack.

Method and limitations

Formula: revenue − supplier product and shipping − ad cost − refund/support allowance − fixed fee − percentage fees. Contribution margin is profit divided by revenue.

This is not legal, tax, logistics or financial advice. It does not assess supplier reliability, delivery promises, chargebacks, duties, customer service labour or fixed overhead unless you add them.

FAQ

What margin should a dropshipper target?

There is no universal target. Test your actual supplier, delivery, advertising, payment, return and support costs, then stress-test the result rather than relying on a benchmark.

Does this calculate tax or net income?

No. It estimates order contribution profit from the costs you enter, not income tax, business overhead or guaranteed earnings.