Business Planning

Dropshipping ROI Calculator

Return on investment for a campaign, product line, or the whole store. Compare ROI across products to decide what to scale.

Inputs

Total profit from the investment $ Please enter a valid number.
Total cost of the investment $ Please enter a valid number.

Results

ROI
Profit as % of investment
Payback (investment ÷ profit)

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
ROI % = (Net profit ÷ Total investment) × 100

What ROI means

ROI (Return on Investment) is profit expressed as a percentage of the money you put in. A 100% ROI means you doubled your money. A 50% ROI means you got back 1.5× your investment. Negative ROI means you lost money.

The formula

ROI = (net profit ÷ investment) × 100

What "investment" means in dropshipping

ROI is meaningful only when you define the investment clearly. Common dropshipping ROI calculations:

Always state what's in the "investment" number when quoting ROI. "We got 300% ROI" means nothing without that context.

Worked example: $5,000 investment, $2,000 profit

InputValue
Net profit$2,000.00
Total investment$5,000.00
ROI40.00%
Payback multiple2.5×

40% ROI in what timeframe? ROI without a time period is incomplete. If you made 40% in 1 month, that's excellent. In 3 years, that's mediocre. Always pair ROI with a time horizon.

Frequently asked questions

What's a good ROI for dropshipping?
For ad campaigns: 20–50% ROI above break-even is healthy (i.e.ROAS 20–50% above break-even ROAS). For the overall store: 20–40% annual ROI on invested capital is solid for ecommerce. Dropshipping specifically tends to have lower ROI than private-label because of thinner margins.
How is ROI different from ROAS?
ROAS = revenue ÷ ad spend. ROI = profit ÷ investment. ROAS is a revenue metric; ROI is a profit metric. ROAS is used for ad campaigns; ROI is used for any investment. They're not interchangeable.
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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