Dropshipping Break-Even ROAS Calculator
One divided by contribution margin.
Break-even ROAS
1.62×
2.13× to keep 15%
Break-even ROAS is one divided by your contribution margin. At 61.8% you need 1.62× just to stand still — which is why thin-margin dropshipping fails: the required ROAS climbs beyond anything the ad platforms can reliably deliver.
How the Dropshipping Break-Even ROAS Calculator works
Break-even ROAS is one divided by your contribution margin. At 25% contribution you need 4× just to stand still — which is why thin-margin dropshipping fails: the required ROAS climbs past anything the ad platforms reliably deliver.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How do I calculate break-even ROAS?
Divide one by your contribution margin. At 40% contribution, break-even ROAS is 2.5×. At 20% it is 5×, which is a very different business to run.
What ROAS is realistic?
For cold traffic on a new store, 1.5× to 2.5× is common. Established stores with retargeting and email can reach 3× to 5× blended. Anything above that usually means the store is under-spending.
Why does margin matter more than ad skill?
Because it sets the target you are trying to hit. A 65% margin product needs 1.5× and forgives a lot of mediocre advertising. A 30% margin product needs 3.3× and punishes any.
Should I use blended or channel ROAS?
Blended for business decisions, channel for optimisation. Channel ROAS double-counts customers who saw several ads, which makes the total look better than the bank balance.