About the Dropshipping Margin Calculator
What is the Dropshipping Margin Calculator?
In India, cash-on-delivery orders that are refused – RTO – quietly destroy dropshipping margins. This dropshipping profit calculator accounts for them.
Profit is shown per order placed and per order delivered.
How to use the Dropshipping Margin Calculator
- Selling Price incl. GST (₹) (sample: 1,499)
- GST Rate (sample: 18%)
- Supplier Product Cost (₹) (sample: 550)
- Forward Shipping per Order (₹) (sample: 80)
- Cash-on-Delivery Orders (%) (sample: 50)
- Return-to-Origin Rate on COD (%) (sample: 25)
- Extra Cost per RTO – reverse shipping (₹) (sample: 80)
- COD Handling Fee per Delivered COD Order (₹) (sample: 30)
- Gateway Fee on Prepaid Orders (%) (sample: 2)
- Ad Cost per Order Placed (₹) (sample: 250)
- Orders Placed a Month (sample: 300)
- Press Calculate Dropshipping Margin (results also refresh as you type). The result card shows the Profit per Order, along with Profit per delivered order, Margin (on delivered revenue excl. GST), Delivery success rate and Monthly profit.
Formula used
Profit per order = Delivered share × Net price − Costs (product, shipping, RTO, COD fee, gateway, ads)
- Delivered share = 1 − COD share × RTO rate
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Selling Price incl. GST (₹) | 1,499 |
| GST Rate | 18% |
| Supplier Product Cost (₹) | 550 |
| Forward Shipping per Order (₹) | 80 |
| Cash-on-Delivery Orders (%) | 50 |
| Return-to-Origin Rate on COD (%) | 25 |
| Extra Cost per RTO – reverse shipping (₹) | 80 |
| COD Handling Fee per Delivered COD Order (₹) | 30 |
| Result | Value |
|---|---|
| Profit per Order | ₹264.06 |
| Profit per delivered order | ₹301.78 |
| Margin (on delivered revenue excl. GST) | 23.8% |
| Delivery success rate | 87.5% |
| Monthly profit | ₹79,217 |
| Break-even ROAS | 2.92× |
| Tip | Confirm COD orders by WhatsApp or call, or offer a prepaid discount, to cut RTO |
Tips for using the Dropshipping Margin Calculator
- Offer a small prepaid discount to shift customers away from COD.
- Verify COD orders before dispatch to cut RTO.