Profit Margin Calculator
Know your real margin before you list. Built for eBay dropshippers using Amazon, AliExpress, and wholesale suppliers.
Quick Start — Try a scenario:
📊 Your Numbers
What you pay supplier
Listed on eBay
To buyer
You pay supplier (0 if Prime)
Fees & Other Costs
eBay default: 12.8%
PayPal/Card: ~2.9%
Packaging, labels, etc
For bulk calculation
💡 Pro tip: For accurate eBay fees with VAT, regulatory fee, and seller level, use our eBay Fees Calculator. This calculator is simpler and works for any marketplace.
Margin Analysis
Breakdown
⚡ Stop calculating one product at a time
UnicornDS Chrome extension shows live margin on every Amazon and AliExpress product you browse. Find winners in seconds, not hours.
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How to Calculate Profit Margin for Dropshipping
Most failing eBay dropshippers don't calculate margin properly. They look at “sell price minus item cost” and think they're profitable. They're not.
The 4 Margins You Must Know
- Markup: (Sell Price − Cost) ÷ Cost. Tells you how many times you marked it up. 100% markup = doubled the price.
- Gross Margin: (Revenue − Costs) ÷ Revenue. Excludes fees. Useful for comparing products.
- Net Margin: (Profit after ALL fees) ÷ Revenue. This is the only number that matters for your bank account.
- ROI: Profit ÷ Total Costs. How efficient is your capital? Above 100% means you doubled your money.
What's a Good Net Margin?
- • Below 10%: Dangerous. Returns or defects wipe you out.
- • 10-15%: Acceptable for very high volume only.
- • 20-30%: Healthy. Most successful dropshippers target this.
- • 30%+: Excellent. Usually AliExpress or wholesale arbitrage.
Hidden Costs Most Sellers Forget
- • Returns: Average 3-5% of orders. Eats 15-30% of profit on a 20% margin.
- • Defects: Stock-outs, late shipments. Damage your eBay metrics.
- • VAT: If you cross £85K turnover/year, +20% on everything.
- • Refunds: Some platforms keep their fee even on refunded orders.
- • Promoted listings: 2-5% extra to get visibility.
📌 Real Example — Amazon Arbitrage Done Right
- • Find product on Amazon: £12 with Prime shipping
- • List on eBay: £24.99 + £3.50 shipping
- • Revenue: £28.49
- • Costs: £12.00 (Amazon Prime ships free to buyer)
- • Fees: 12.8% × £28.49 = £3.65 + £0.40 per-order fee
- • Payment: 2.9% × £28.49 = £0.83
- Net profit: £11.61 (40.8% margin) ✅