Inventory & Cashflow

Dropshipping Cash Flow Calculator

Project monthly cash flow from sales, costs, ad spend, and payment-processor payout lag. Find the gap before it finds you.

Inputs

Please enter a valid number.
$ Please enter a valid number.
COGS + shipping + fees + ad cost as % of price % Please enter a valid number.
Shopify + apps + software $ Please enter a valid number.
Stripe usually 2 days, PayPal usually instant Please enter a valid number.

Results

Monthly revenue
Monthly variable costs
Monthly contribution
Monthly net profit
Cash tied up in payout lag

All calculations run in your browser. Nothing is sent to a server. Last updated: 2026-07-19 · Formula verified against published sources (see below).

Formula
Net cash flow = Cash in − Cash out (per period)

What this calculator does

Projects monthly cash flow from sales, costs, and processor payout lag. The most overlooked number on this page is "cash tied up in payout lag" — when Stripe holds your money for 2 days, that's 2 days of revenue you can't use to pay suppliers or ads.

The formula

Monthly revenue = orders × AOV

Monthly contribution = revenue × (1 − variable cost %)

Net profit = contribution − fixed costs

Cash tied up = (revenue ÷ 30) × payout lag days

Why payout lag matters

If you do $4,000/month in revenue with a 2-day Stripe payout lag, $267 of your money is always tied up in Stripe's clearing window. With PayPal (instant payout), that money is yours same-day. For high-growth dropshippers, the working-capital difference between processors can be material.

Worked example

InputValue
Orders per month100
AOV$40.00
Variable cost %74%
Fixed costs$500.00
Payout lag2 days
Monthly revenue$4,000.00
Monthly contribution$1,040.00
Monthly net profit$540.00
Cash tied up in payout lag$266.67

$540/month in profit looks healthy. But $266.67 is always locked in Stripe's clearing window, so the cash you can actually use is $273.33/month net of working capital. This is why fast-growing dropshipping stores often need a working capital loan even when they're profitable.

Frequently asked questions

How do I reduce cash tied up in payout lag?
Switch to a processor with faster payouts. PayPal Instant Transfer is same-day (1% fee). Stripe has a 2-day default but offers instant payout for 1.5% fee. Shopify Payments has 2–3 day default. The fee is usually worth it during cash-tight scaling phases.
My fixed costs are higher than my contribution. What do I do?
You're losing money monthly. Two levers: increase contribution (raise prices, lower variable costs, improve AOV via bundles) or cut fixed costs (drop unused apps, downgrade Shopify plan). Use the break-even units calculator to see how many orders you need.
Not financial advice. This calculator is a math tool, not financial advice. Profit margins, ad spend, and business decisions depend on your specific situation. Consult a licensed accountant or financial advisor before making material business decisions.

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