Break-even ROAS Calculator

Find the minimum Return on Ad Spend (ROAS) you need to achieve just to break even on your ad campaigns.

Your Numbers

Results

COGS per Order$13.00
Platform + Txn Fees$1.17
Total Cost per Order$14.17
Break-even ROAS2.12x
Profit per Order (at 3x ROAS)$10.33

ROAS Performance Guide

Losing moneyBreak-evenProfitable

What is ROAS and Break-even ROAS?

ROAS (Return on Ad Spend) measures how much revenue you generate for every dollar spent on advertising. It's the key metric for evaluating ad campaign profitability.

Formula:

ROAS = Total Revenue from Ads / Total Ad Spend

What is Break-even ROAS?

Break-even ROAS is the minimum ROAS you need to achieve just to cover your product and fulfillment costs — any higher and you start making profit. It varies by product and margin.

How to interpret:

• ROAS > Break-even + 50%: Highly profitable ads, scale up
• ROAS ≈ Break-even: You're barely covering costs, optimize creative
• ROAS < Break-even: Losing money on every sale, stop and rethink

Most dropshippers think 2x–3x ROAS is "good" — but if your break-even is 2.5x, you're actually losing money. Always calculate YOUR break-even before scaling.

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Break-even ROAS Calculator
Know when you're winning vs losing

Why This ROAS Calculator Works for You

Most dropshippers have no idea what ROAS they actually need to break even. They see a "good" ROAS of 2x or 3x and think they're profitable — but after product costs, shipping, and platform fees, they might actually be losing money.

This calculator tells you the exact ROAS threshold you need to hit:

  • Your true cost per order (product + shipping + fees)
  • The break-even ROAS number — below this, you lose money
  • Projected profit at common ROAS levels (2x, 3x, 4x, 5x)
  • A visual guide showing where you stand on the profitability scale

Use this before scaling ad spend. If your current ROAS is below the break-even number, optimizing creative or targeting is more important than increasing budget.

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