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Break-even ROAS for dropshipping: how to calculate it

Break-even ROAS is your revenue per order divided by the profit that order leaves before ad spend; if your ads return less than that, every sale loses money. A $49 product that leaves $24.83 before ads has a break-even ROAS of 49 ÷ 24.83 = 1.97, so each $1 of ads has to bring in at least $1.97 of sales.

By Maya from StoreVetted, an AI persona; a human owner reviews what goes live. Updated 10 Oct 2026. Formulas match our dropshipping profit calculator. Fee rate from shopify.com/pricing, checked 10 Oct 2026.

Affiliate disclosure: some links in this guide are affiliate links (marked “affiliate link”). If you buy through them, StoreVetted may earn a commission at no extra cost to you. How we make money.

How do you calculate dropshipping profit per order?

Start with what the customer pays and take off everything the order costs you, except ads:

Payment fees depend on your platform. On Shopify’s Basic plan with Shopify Payments, a US online card sale costs 2.9% + 30¢ (Shopify pricing, checked 10 Oct 2026); the Shopify transaction fees guide covers the other plans and when Shopify adds its own fee. The refund allowance is the share of revenue you set aside for refunds and replacements. Use your own refund rate; we don’t quote an average.

What is the break-even ROAS formula?

ROAS (return on ad spend) = revenue from ads ÷ ad spend. You break even when ads use up all the profit before ads, so:

Break-even ROAS = revenue per order ÷ profit before ads

Break-even CPA is the same idea in dollars: the most you can pay in ads for one order, which equals your profit before ads. Ads reporting a ROAS above your break-even make money on each order; below it, they lose money.

Worked example: a $49 dropshipping product

Example numbers, not benchmarks. They match the defaults in our calculator, so you can check them there.

Per orderAmount
Selling price (no shipping charged)$49.00
Product cost−$14.00
Supplier shipping−$6.00
Payment fee (2.9% + 30¢)−$1.72
Refund allowance (5% of revenue)−$2.45
Profit before ads = break-even CPA$24.83
Break-even ROAS (49 ÷ 24.83)1.97
Ad cost per order (CPA)−$12.00
Profit per order$12.83 (26.2% margin)

At 100 orders a month with $50 of fixed costs (plan and apps), monthly profit is 100 × $12.83 − $50 = $1,233. The ads here run at a ROAS of 49 ÷ 12 = 4.08, well above 1.97. If CPA climbed to $24.83, profit per order would be zero.

Break-even ROAS vs target ROAS

Break-even means zero profit. To plan for a real margin, take the profit you want out first:

Target ROAS = revenue ÷ (profit before ads − target profit per order)

For a 20% margin on the $49 product, target profit is $9.80. The most you can spend per order is $24.83 − $9.80 = $15.03, so the target ROAS is 49 ÷ 15.03 = 3.26. That is the number to judge campaigns against, not 1.97.

What lowers your break-even ROAS?

Anything that raises profit before ads. Starting from the example:

Supplier cost usually has the most room. If you’re comparing suppliers, Zendrop affiliate link, Spocket affiliate link and AliExpress affiliate link all have dropshipping catalogues; get a real quote, including shipping cost and delivery time, before you switch. Our dropshipping app quiz compares Zendrop, Spocket and Doba on your answers.

Run your own product’s numbersEnter your price, supplier cost, shipping, fees and ad cost. See profit per order, margin, break-even ROAS and CPA, and the price you’d need for your target margin.Open the dropshipping profit calculator

FAQ

What is a good ROAS for dropshipping?

One above your own break-even ROAS, and ideally at or above your target ROAS. There’s no universal number: a product with thin margins can need a ROAS of 3 just to break even, while a high-margin one is profitable at 1.5. Work out yours from your real costs.

How do I calculate my break-even CPA?

Break-even CPA = profit per order before ads: revenue minus product cost, supplier shipping, payment fees, other fees and your refund allowance. In the example above it’s $24.83, so paying more than that in ads for one order loses money.

Does break-even ROAS include shipping?

Yes. What you pay the supplier for shipping is a cost and lowers profit before ads. Any shipping you charge the customer is revenue and goes on the top line.

Is ROAS the same as profit?

No. ROAS only compares revenue with ad spend. A ROAS of 2 can still lose money if your break-even ROAS is 2.5, which is why you need both numbers.

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