What ROAS do I need for dropshipping to be profitable?

Depends on your margin. Most dropshippers need 4-6:1 ROAS due to thin margins (15-25%). Use our calculator to find your exact break-even.

Why is dropshipping ROAS so hard to achieve?

Low margins mean higher ROAS requirements. A 20% margin product needs 5:1 ROAS to break even, while a 50% margin product only needs 2:1.

Should I include shipping in margin calculation?

Absolutely. If you offer free shipping, that cost comes from your margin. If customer pays, include any subsidy you provide.

What margin should dropshipping products have?

Aim for 30%+ after ALL costs. This gives you a 3.33 break-even ROAS, which is achievable with good creatives and targeting.

Dropshipping ROAS Calculator | Calculate Profit with Low Margins

Dropshipping ROAS Calculator

Thin margins? Calculate precisely.

ROAS calculator designed for dropshippers. Calculate break-even with thin margins, factor in supplier costs, and find your profitable ad budget.

TL;DR - What You Need to Know

Dropshipping margins are thin—every ROAS point matters. Our calculator helps you find break-even ROAS considering product costs, shipping, returns, and payment fees. Know exactly when you're profitable.

Dropshipping ROAS

Calculate ROAS with all dropshipping costs

Revenue from Ads ($)

Ad Spend ($)

Profit Margin (%)

Industry Benchmarks

Good ROAS

3:1 to 4:1 for dropshipping

Average ROAS

2:1 to 2.5:1

Break-Even Tip

Most dropshippers have 15-25% true margin, requiring 4-7:1 ROAS to break even.

Sources: Oberlo Dropshipping Report 2024, Shopify Dropshipping Statistics, Facebook Ads for E-commerce Study (Verified: 2024-12)

This Calculator Is For

Dropshippers testing new products with ads
Shopify store owners using Facebook/TikTok ads
AliExpress/CJ Dropshipping sellers
Print-on-demand business owners

Not Ideal For

Those with 40%+ margins—standard calculator works fine
Those not using paid ads for customer acquisition

Real-World Examples

Typical Dropshipping Product

Scenario: Selling price: $29.99. Product: $8. Shipping: $4. Stripe fee: $1.17. Return reserve: $3. True margin: $13.82 (46%).

Calculation: Break-Even ROAS = 1 / 0.46 = 2.17:1

Insight: Better than average dropshipping margin. Target 3:1 ROAS for healthy profit.

Low Margin Product (Warning)

Scenario: Selling price: $14.99. Product: $6. Shipping: $3. Fees: $0.73. Returns: $1.50. True margin: $3.76 (25%).

Calculation: Break-Even ROAS = 1 / 0.25 = 4:1

Insight: Very hard to advertise profitably. Consider bundling or finding higher margin products.

Pro Tips

Calculate true margin: Product cost + shipping + 3% payment fee + 10-15% returns
Products under $15 margin are very hard to advertise profitably
Scale only products that hit 2:1+ ROAS in testing phase
TikTok often has better ROAS than Facebook for dropshipping currently
Winning products can sustain 3:1+ ROAS even when scaled

Common Mistakes to Avoid

Using gross margin (selling price - product cost only)

Include shipping, payment fees (2.9% + $0.30), and expected returns (10-20%)

Scaling too fast after first profitable day

Wait for 3-5 days of consistent ROAS before scaling 20-30% daily

Testing products with <$10 margin

Low-margin products need impossibly high ROAS—test higher ticket items

Frequently Asked Questions

Related Calculators

Breakeven →Facebook Ads →Tiktok Ads →

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