Break-Even ROAS Calculator for Dropshipping

Last updated: February 18, 2026

This free break-even ROAS calculator helps you estimate the minimum return on ad spend needed to avoid losses. Enter your product, shipping, and fee costs to quickly see your gross margin and ad efficiency threshold. Use these numbers to set safer campaign targets before scaling paid traffic. You can also add conversion rate to estimate a break-even CPC benchmark.

Calculator

How to Use This Tool

  1. Enter your selling price and all order-level costs.
  2. Set your transaction/platform fee percentage.
  3. Add optional costs like packaging if applicable.
  4. Optionally provide conversion rate to estimate max CPC.
  5. Click calculate and use the outputs to guide ad spend targets.

Understanding Break-Even ROAS

Break-even ROAS tells you the minimum ad return needed to cover product and operational costs. If your campaign performs below this threshold, you lose money before considering fixed overhead. The lower your costs and the higher your gross margin, the lower your required ROAS and the easier it is to scale ads.

This metric is especially useful for dropshippers testing new products because it sets a clear efficiency target. You can compare actual ad account ROAS against your break-even value to decide whether to optimize, pause, or increase budget.

FAQ

What is a good break-even ROAS target?

A good target is one that is below your current campaign performance, leaving room for profit after ad spend.

Does this include fixed monthly business costs?

No. This calculator focuses on per-order variable costs. Add fixed cost coverage separately in your planning.

Can I use this for non-dropshipping ecommerce?

Yes. Any store with similar order-level costs and ad spending can use this framework.

How often should I recalculate break-even ROAS?

Recalculate whenever product pricing, supplier costs, shipping rates, or payment fees change.

Why is my break-even ROAS shown as N/A?

This happens when gross margin is zero or negative, meaning paid traffic is currently not sustainable.