Free Dropshipping Calculator: Profit, Margin & RTO Calculator
Are you looking for a simple and accurate dropshipping calculator? and want to know how to calculate dropshipping profit? Then here it is.
If you’re doing dropshipping, whether it’s through Shopify, WooCommerce, Meesho, GlowRoad, or even your website, you already know how tricky it can be to track your actual dropshipping profit. It’s not just about the selling price and product cost. There are so many hidden charges and factors like cancelled orders, RTO (Return to Origin), ad costs, and shipping fees that can eat away at your earnings.
That’s why I created this ecommerce calculator. It’s simple, easy to use, and helps you calculate your real dropshipping profit or loss after considering all important costs and situations. No Excel sheets. No confusing formulas. Just enter your values, and you get instant results.
Let me walk you through how it works and explain each field.
Input Fields of this Dropshipping Price Calculator Explained (What You Need to Enter)
Here are the fields you’ll need to fill in:
What is the Selling Price
This is the price at which you are selling the product to your customer. For example, if you are selling a phone case for ₹499, enter 499 here.
What is Product Cost
This is the actual cost price you pay to your supplier or manufacturer to source one unit of the product.
What are the Shipping Charges per Product
Include the delivery fee that you pay to your logistics provider (like Delhivery, Shiprocket, etc.). This is usually charged per product, whether delivered or returned.
What is Total Orders Received
How many total orders did you receive during a certain period? This includes all orders, delivered, cancelled, and returned (RTO).
What is Cancelled Quantity
Out of total orders, how many were cancelled by customers or due to payment failure? These orders never shipped out.
What is RTO in Dropshipping? RTO% (Return to Origin Percentage)
The percentage of products that were returned by the courier (i.e., customers didn’t accept them). For example, if 10 out of 100 orders were returned undelivered, your RTO% is 10%.
What is Ads Cost per Product
How much do you spend on ads (Google, Facebook, Instagram, etc.) to sell each product? Enter your average cost per product sold.
Results You’ll Get (Auto Calculated)
After entering the above info, the ecommerce profit calculator will automatically show you:
Margin
This is your profit per product before subtracting ad cost, RTO losses, or cancellations. It’s calculated like this:
Margin = Selling Price – Product Cost – Shipping Charge
Total Order Value
This is the total amount you earned from all orders (including cancelled and returned), calculated as:
Total Order Value = Total Orders × Selling Price
RTO Qty
Number of orders that were returned undelivered based on the RTO percentage you entered.
Orders Delivered
This is the actual number of successful deliveries:
Orders Delivered = Total Orders – Cancelled – RTO Qty
RTO Cost
This is the total shipping cost you lost due to return-to-origin orders. Even if a product is not delivered, you often still have to pay shipping charges.
RTO Cost = RTO Qty × Shipping Charges
Ads Cost
Total money spent on ads to sell your products:
Ad Cost = Delivered Orders × Ads Cost per Product
Total Purchase Cost
Total amount spent on purchasing the actual products that were delivered:
Total Purchase Cost = Delivered Orders × Product Cost
Revenue Generated
This is the amount you earned from successfully delivered orders:
Revenue Generated = Delivered Orders × Selling Price
Profit/Loss
This is the final figure that shows whether you made a profit or suffered a loss. It considers every cost, product, shipping, RTO, and ad:
Profit/Loss = Revenue – (Purchase Cost + Shipping on Delivered + RTO Cost + Ads Cost)
Why This Tool is Helpful
If you’re running Facebook or Google ads, dealing with high RTOs, or facing frequent order cancellations, it’s very easy to lose track of your actual earnings. This tool helps you:
Whether you’re a beginner or an experienced dropshipper, this tool gives you a clear picture of your business performance without the headache.
Who Should Use This Tool?
This dropshipping profit calculator is perfect for:
Built this tool out of my struggles with tracking profits. As someone who has done dropshipping, I know how messy it gets without a clear system. So I kept the interface of this dropshipping profit margin calculator clean, simple, and mobile-friendly so you can use it anytime, even on the go.
Try it now and see your numbers in a whole new light. And if you find this helpful, feel free to share it with your friends or community.
If you want me to add more features or fields in this tool, just reach out. I’d love to hear from you. Thanks for using the tool and happy dropshipping!