Shopify Dropshipping Profit Calculator

Model overview: Revenue is calculated as selling price × units sold. Itemized costs include supplier COGS, shipping per order, payment transaction fees, platform fees, and other operating expenses. Profit before tax equals revenue minus all itemized costs. Estimated tax is applied to positive profit before tax to compute net profit.

Assumptions and boundary cases: Transaction and platform fees are modelled as percentages of gross revenue. Other expenses are treated as period-fixed costs. Estimated tax is applied only to positive profit. If profit before tax is negative, estimated tax is zero in this model.

Sources and references:

• Payment processing fee examples: Stripe documentation and common fee schedules (example: https://stripe.com/docs/payments/fees).

• Platform fee examples: Shopify and marketplace fee pages (example: https://www.shopify.com/pricing).

• Small business tax guidance: IRS resources on business income and expenses (https://www.irs.gov/businesses/small-businesses-self-employed).

Model limitations: This calculator does not account for inventory accounting methods (FIFO/LIFO), currency exchange impacts, VAT/GST handling, customs duties, or state-specific tax rules. For formal financial statements and tax filing, consult a licensed accountant.

This calculator produces an itemized profit breakdown: gross revenue, COGS, shipping, fees, operating expenses, profit before tax, estimated tax, and net profit.

Adjust inputs to run scenario analysis and sensitivity checks. Validate assumptions against your real transaction reports and consult professionals for accounting and tax specifics.