ToolSphereToolSphere
Invoices · 100

Dropshipping Profit Calculator

Reconcile refunds, supplier recoveries, fulfillment and entered selling costs to calculate contribution and estimated operating profit.

8
Daily Uses

8 of 8 free uses remaining today

Reconcile matched-order product sales, customer refunds, supplier recoveries and selling expenses. Show contribution and estimated operating profit separately, without assuming every refunded order recovers its supplier cost.

Enter your business figures

Product price × quantity before initial discounts or subsequent reversals, excluding collected taxes/duties and shipping. Use one eligible paid/fulfilled order cohort.

Discounts on those original product sales. Do not enter product revenue already net of these discounts.

Refunds/adjustments allocated to these original orders after related discount corrections; not all refunds processed in a calendar period. Exclude shipping/tax reversals.

Shipping collected less shipping discounts and refunds for the same orders, excluding collected taxes. Not supplier delivery expense.

Product costs assigned to the original fulfilled units, before matched supplier credits. Not all inventory purchases. Exclude delivery costs entered separately.

Actual credits/recoveries that reduce the assigned product expense. A customer refund does not automatically recover supplier cost. Do not also credit inventory recovery already reflected in the expense.

Supplier/carrier delivery, packaging and order-fulfillment expense less applicable credits. Exclude costs already in product expense or return handling.

Your actual variable transaction fees after matched fee refunds/credits. Include applicable nonrefunded fees; no provider rate schedule is assumed.

Ad/campaign spend attributable to this cohort. Do not multiply new-customer CAC by all orders or duplicate fixed staff salaries.

Unrecovered return delivery, inspection, processing and dispute expenses not entered elsewhere. Product revenue refunds are already in reversals.

Other costs varying with the represented orders, after matching credits and without double-counting.

Consistent allocation of overhead, salaries, software and relevant depreciation for the represented period/cohort. Exclude financing, income tax and amounts entered above.

Positive whole count of the same original eligible orders, including ones later refunded. Not customers, units or refund transactions. Use an observation cutoff for later reversals.

Each successful calculation uses one of this tool’s 8 daily free uses. Editing, resetting and invalid inputs use none. Your figures remain in your browser.

Worked example

Example output from the starting values. Enter your figures and press Calculate for your result.

Net product revenue after matched reversals
46,000 currency units
Net revenue including shipping collected
47,000 currency units
Net supplier product expense after recoveries
19,200 currency units
Total variable expense
34,200 currency units
Contribution before fixed operating expenses
12,800 currency units
Contribution per original order
12.8 currency units/order
Estimated operating profit
11,800 currency units
Estimated operating profit per original order
11.8 currency units/order
Contribution margin on net revenue
27.234 %
Estimated operating margin on net revenue
25.1064 %
Cost-coverage revenue per order at this volume
35.2 currency units/order

Calculate your figures to enable a brand-free CSV download.

Formula

Net product revenue = original gross product sales − initial discounts − matched net product reversals. Net revenue = net product revenue + net shipping revenue collected. Net supplier product expense = assigned original supplier product expense − matched supplier expense recoveries. Variable expense = net supplier product expense + net fulfillment + net transaction fees + variable marketing + return/dispute handling + other variable expense. Contribution = net revenue − variable expense. Estimated operating profit = contribution − allocated fixed operating expenses. Per-order amounts divide by the original matching order count. Operating margin = estimated operating profit ÷ positive net revenue × 100.

How to use this calculation

50,000 original product sales − 2,500 discounts − 1,500 matched product reversals = 46,000 net product revenue. Add 1,000 net shipping collected for 47,000 net revenue. Supplier expense of 20,000 less 800 matching credits is 19,200. Including 3,000 fulfillment, 1,500 fees, 10,000 marketing, 300 handling and 200 other variable expense gives 34,200 variable expense and 12,800 contribution. Less 1,000 fixed operating expenses gives 11,800 estimated operating profit, or 11.80 across 1,000 original orders. All starting figures are illustrative, not recommended fees or margin benchmarks.

  • Keep one currency, an eligible original order cohort, a consistent expense-allocation policy and an observation cutoff. Calendar-date sales reports may include refunds from older orders; reconcile those to their original cohort before using this calculation. Collected taxes/duties are excluded, while net shipping collected is revenue and shipping paid is an expense. Sales recognition and payment timing differ, so this is not cash flow.
  • Product reversals and supplier expense recoveries are separate: refunded products may leave supplier costs or fees unrecovered. A recovery cannot exceed the original assigned expense here. Recognize credits/inventory recovery consistently with your accounting policy and never subtract them twice. Discounts and product reversals cannot together exceed matching product sales in this cohort model; reconcile goodwill compensation, disputes and other expenses to their appropriate expense category. No current platform fee percentage or complete-fee guarantee is implied.
  • Contribution covers fixed expenses before estimated operating profit. This estimate excludes financing, income taxes, non-operating items and unentered expenses; losses are valid and zero-revenue percentage margins are undefined. The cost-coverage revenue per original order holds entered costs and order volume fixed; it is not a demand forecast, volume break-even point or optimized price. No store/customer data is read or order placed; use current actual costs and review late refunds or credits before making decisions.

Formula reference: AccountingCoach: Contribution Margin versus Operating Income. General planning information, not a guarantee of business results.

Evaluate a cost-based per-unit price under explicit fee assumptions

About net sales, order adjustments and shipping definitions

Related Tools

View all

Product Pricing Calculator

Calculate fee-adjusted target pricing, upward price increments and candidate margins without confusing residual profit with markup.

Amazon FBA Calculator

Calculate Amazon FBA fees, costs, and profit margins

Conversion Rate Calculator

Calculate session-based purchase conversion and compare percentage-point and relative changes with a matching period.

Shipping Rate Calculator

Compare three supplied shipping quotes including missing charges and packaging, with transit-day limits and an identical-shipment cost scenario.