Find how many dropship orders are needed to cover fixed costs at your margin after fees and ads.
Dropshipping has thin absolute margins, so payment fees and advertising consume most of the gap between price and supplier cost. The maximum sustainable ad spend is the hard ceiling on what a customer can cost before the order itself loses money. Most dropshipping failures come from advertising costs drifting above the maximum sustainable figure, which this makes explicit before scale magnifies it.
Dropshipping Break-Even
Contribution = price − supplier cost − advertising − payment fee
Contribution = price − supplier cost − advertising − payment fee Dropshipping has thin absolute margins, so payment fees and advertising consume most of the gap between price and supplier cost. The maximum sustainable ad spend is the hard ceiling on what a customer can cost before the order itself loses money.
Most dropshipping failures come from advertising costs drifting above the maximum sustainable figure, which this makes explicit before scale magnifies it.
This calculator takes 5 inputs: Fixed costs per month, Selling price per order, Supplier cost per order, Advertising cost per order, Payment processing fee. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.