Dropshipping ROAS Calculator | Calculate Profit with Low Margins
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.
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.
Calculate ROAS with all dropshipping costs
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)
- Dropshippers testing new products with ads
- Shopify store owners using Facebook/TikTok ads
- AliExpress/CJ Dropshipping sellers
- Print-on-demand business owners
- Those with 40%+ margins—standard calculator works fine
- Those not using paid ads for customer acquisition
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.
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.
- 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
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
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