Dropshipping Break-even ROAS Calculator

Calculate the minimum Return on Ad Spend (ROAS) you need to achieve just to break even. This is the critical benchmark for your advertising campaigns.

Enter Your Details

Selling Price ($)

Product Cost ($)

Shipping Cost ($)

Transaction Fees ($)

Miscellaneous Costs ($)

Results

Your Break-even Point

0.00x

This is the minimum ROAS you need to not lose money

Cost Breakdown

Total Non-Ad Costs: $0.00

Maximum Ad Spend to Break Even: $0.00

If your actual ROAS is higher than your break-even ROAS, you're making a profit. If it's lower, you're losing money on each sale.

Enter your details and click "Calculate" to see your break-even ROAS

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What is ROAS and Break-even ROAS?

ROAS, or Return on Ad Spend, measures how much revenue you earn for every dollar you spend on ads.

ROAS Fomula:

$ \displaystyle \mathrm{ROAS} = \frac{\text{Revenue}}{\text{Ad Spend}} $

Example: If you spend $100 on ads and generate $400 in sales → ROAS = 400 ÷ 100 = 4. Higher ROAS → more profitable campaigns.

Break-even ROAS tells you the minimum ROAS you need just to cover your product cost, shipping, and platform fees. If your ad campaigns deliver a ROAS below this number, you’re losing money. Anything above this number means you’re making a profit.

Break-even ROAS Fomula:

$ \displaystyle \text{Break-even ROAS} = \frac{\text{Selling Price}}{\text{Selling Price} - \text{Non-ad Costs}} $

Example: Selling Price = $39.99, Non-ad Costs = $19.45 → Break-even ROAS ≈ 1.95. This means you need at least a 1.95 ROAS from ads just to break even.

FAQ: Dropshipping Break-even ROAS Calculator

1. What is ROAS in dropshipping?

ROAS stands for Return on Ad Spend. It shows how much revenue you earn for every dollar you spend on advertising. For example, a ROAS of 3.0 means you generate $3 in sales for every $1 spent on ads.

2. What is Break-even ROAS?

Break-even ROAS is the minimum ROAS you need to cover your costs (product, shipping, transaction fees, and other expenses). If your campaigns hit this number, you’re not losing money, but you’re not making profit either.

3. What is a good ROAS in dropshipping?

A “good” ROAS depends on your niche and margins. In general:

Always compare your actual ROAS with your Break-even ROAS to know if you’re making profit.

4. How can I lower my Break-even ROAS?

To lower your break-even ROAS (and make profitability easier to reach), you can:

Negotiate lower supplier costs
Find cheaper or faster shipping options
Reduce refund rates
Optimize your store to increase selling price without hurting conversions
Use upsells or bundles to raise your average order value (AOV)

5. Why is Break-even ROAS important for dropshipping?

Without knowing your break-even ROAS, you risk scaling ad campaigns that are losing money. By calculating this number, you set a clear benchmark to know: