Dropshipping startup cost calculator

How this calculator works

The calculator covers the cash you need to launch and the margin on each order. Launch costs are the first month of the plan and apps, the domain, any theme or design work, sample orders and a test ad budget. Per-order figures are the selling price, the supplier’s product and shipping cost, card fees, an allowance for refunds and chargebacks, and the ad cost to win one order. It does not include tax, returns shipping, or the time you spend finding products.

The steps

1. Add up the supplier cost and shipping per order, with an optional currency conversion cost.
2. Subtract card fees for the chosen Shopify plan (a percentage of the price plus $0.30) and the expected refund losses.
3. What is left is the contribution before ads. The price divided by the contribution is your break-even return on ad spend: below that return, every ad dollar loses money.
4. Subtract the ad cost per order to get profit per order. Orders from your ad budget are the budget divided by the ad cost per order. The monthly result subtracts plan, apps and domain.

Assumptions

• One product at one price. Stores with several products can average their numbers.
• The ad cost per order is an input you choose. It is the least certain number, so test with a small budget before you rely on it.
• Refunds are treated as a lost sale: you lose the price and the product cost is still paid.
• Card fees follow the rates on our methodology page.

Two worked examples

Costs people forget

• Test ad spend that finds nothing. Most test budgets find products that do not work. Set a test budget you can afford to lose entirely.
• Slow shipping and refunds. Long delivery times lead to refund requests and disputes. Our refund input is a placeholder, so use your own numbers once you have orders.
• Chargeback fees. A card dispute can come with a fee on top of the lost sale. Check your payment provider’s terms.
• Apps that pile up. Reviews, upsells, email and tracking apps each cost a little per month. Add them in the apps field.
• Tax and import duties. Some buyers face duties or VAT on cross-border shipments, and platforms may require you to handle them. Ask an accountant how this applies to you.
• Customer support time. Answering messages about delivery is work. If you outsource it, add the cost to your monthly fixed costs.

Frequently asked questions

How much money do I need to start dropshipping?

The launch budget in the calculator shows the cash for the first month, including a test ad budget. The test budget is the part you choose, so decide it deliberately.

What is break-even return on ad spend?

It is the selling price divided by the contribution per order before ads. If your ads return less than this, each order loses money.

Why is my monthly result negative?

Usually because the ad cost per order is higher than the margin left after products, fees and refunds. The notes under the results say when that is the case.

Does this include Shopify transaction fees for other gateways?

This calculator uses Shopify’s card rate. The Shopify monthly cost calculator handles an external payment provider.

What ad cost per order should I use?

Use a number from your own tests. If you have none, try a few values to see how much margin you would need.

How current are the fees?

Reviewed on 10 November 2026. Always confirm on the Shopify pricing page before you commit.

Related calculators

• E-commerce break-evenHow many orders a month you need to cover fixed costs and a profit target.
• Shopify monthly costPlan, card fees, apps and domain, and what share of your sales they take.
• Startup runwayHow many months your savings last, with and without growth.
• Print-on-demand startup costSamples, platform, ads and the orders you need each month to break even.
• Guide: The hidden costs of launching an online store in your first 90 daysCosts that rarely appear in a start-up budget, and how to plan for them.

StartupCostLab provides estimates for planning only. Results depend on the numbers you enter and on fees that platforms change. This is not financial, tax or legal advice. Fee data last reviewed 10 November 2026; confirm current prices on each provider’s own site before you spend money.