Dropshipping Profit Calculator UK
Free UK dropshipping margin calculator with VAT 20%, GBP, shipping and ad spend. Free, no sign-up.
What you pay per unit
Customer pays this
Divide total ad cost by units
Per unit shipping
% rate + fixed fee (e.g. Shopify Payments: 2.9% + $0.30)
For projection calculations
📊 Results
Net Profit / Sale
£13.51
Profit Margin
38.62%
Gross Profit
£23.34
Markup %
399.86%
Cost Breakdown
Projections (15 units/day)
Daily
£202.69
Monthly
£6080.73
Yearly
£73982.26
Margin calculation formula (UK example)
Extract VAT from a VAT-inclusive price, then: Net profit = Net revenue − product − shipping − ads − platform fees. Margin % = Net profit ÷ selling price × 100.
🧴 Example: Skincare dropship (GBP)
At ~15 sales/day this sketch nets roughly £200/day before fixed overheads — use the projection fields to stress-test slower conversion weeks.
Local rules: UK VAT, Shopify fees & GBP
Currency: GBP. VAT: Standard rate 20% on most goods when registered. Display prices to consumers VAT-inclusive. Imports: Post-Brexit, goods from outside the UK can trigger import VAT/duty depending on value and category.
Shopify fees: Monthly plan + Payments (% + fixed). Model the per-order fee here; put plan/apps into the break-even calculator. FX fees apply if you pay AliExpress in USD while collecting GBP.
How to use the UK dropshipping calculator
Enter supplier cost in GBP (convert from USD if needed), VAT-inclusive selling price, shipping, and CPA. Keep fee defaults or match Stripe/PayPal/eBay. Read net profit and margin before you spend on TikTok or Meta — free, no sign-up.
Frequently Asked Questions
Real questions sellers ask about this calculator and local costs.
Do UK dropshippers need to charge VAT?+
You generally must register for VAT once taxable turnover exceeds the UK threshold (commonly £90,000). VAT-registered sellers charge 20% on most goods. Import VAT can still apply on overseas goods — get local advice for your setup.
What is a good profit margin for UK dropshipping?+
Aim for 25–35% gross before ads, and roughly 15–25% net after Facebook/TikTok CPA. Below 15% net is hard to scale profitably in the UK.
How does this calculator handle VAT?+
UK retail prices are usually VAT-inclusive. We extract the 20% VAT element from price to estimate net revenue, then subtract costs. If you are under the threshold and not charging VAT, lower the tax impact by adjusting inputs or treating price as net.
What are typical Shopify fees in the UK?+
Expect a monthly Shopify plan plus Shopify Payments (% + pence per order). UK card rates are often lower than US headline 2.9% — still model fees per order inside this calculator before you buy ads.
Can I use this for eBay UK?+
Yes. Set platform fee near eBay’s final value fee (often around 12.8% + 30p on many categories) and include any shop subscription cost in your broader break-even math.
How do I calculate ROAS for UK Facebook ads?+
ROAS = revenue ÷ ad spend. Break-even ROAS ≈ 1 ÷ gross margin. With 35% margin, break-even is about 2.86x. Use our ROAS calculator for targets.
What costs do UK dropshippers forget?+
Post-Brexit import VAT/duties, FX conversion when paying USD suppliers, returns (strong UK consumer rights), apps, and payment fees. Build a 5–10% contingency into COGS when unsure.
Is this tool free?+
Yes — free, no sign-up. Results are estimates for planning, not formal accounts.
Related calculators
More free ecommerce profit tools on ProfitCalc.
Related guides
Deeper reading that pairs with this calculator.
Last updated:
How we calculate
For UK VAT mode we treat price as VAT-inclusive, extract VAT at 20/(100+20), then apply platform % + fixed fee on the relevant base and subtract COGS, shipping, and ads. Margins use net profit ÷ selling price. Always confirm VAT status with a UK adviser.