What ROAS do I need to be profitable in dropshipping?

It depends on your gross margin. Calculate: Break-even ROAS = 1 ÷ Gross Margin. If your margin is 25%, you need at least 4× ROAS to break even. For healthy profits, aim for 1.5-2× your break-even ROAS.

Why is my ROAS 3× but I'm still losing money?

Because dropshipping margins are typically only 15-30%. With a 20% margin, your break-even ROAS is 5×. So 3× ROAS means you're losing ~40% of your ad spend! Always calculate break-even ROAS first.

What's a good gross margin for dropshipping?

Typical dropshipping margins range from 15-30% before ad spend. Aim for at least 40-50% gross margin to have room for advertising. If margin is below 20%, the product may not be viable for paid ads.

How do I improve my dropshipping ROAS?

1) Source products with higher margins (aim for 40%+), 2) Improve ad creative and targeting, 3) Increase average order value with upsells, 4) Reduce supplier/shipping costs, 5) Test different audiences and ad formats.

Should I use Facebook or Google Ads for dropshipping?

Facebook/Meta Ads are most popular for dropshipping due to visual products and impulse buys. Google Ads can work for products with search demand. TikTok Ads are growing fast for younger demographics. Test both with small budgets.

What ROAS do I need to be profitable in dropshipping?

It depends on your gross margin. Calculate: Break-even ROAS = 1 ÷ Gross Margin. If your margin is 25%, you need at least 4× ROAS to break even. For healthy profits, aim for 1.5-2× your break-even ROAS.

Why is my ROAS 3× but I'm still losing money?

Because dropshipping margins are typically only 15-30%. With a 20% margin, your break-even ROAS is 5×. So 3× ROAS means you're losing ~40% of your ad spend! Always calculate break-even ROAS first.

What's a good gross margin for dropshipping?

Typical dropshipping margins range from 15-30% before ad spend. Aim for at least 40-50% gross margin to have room for advertising. If margin is below 20%, the product may not be viable for paid ads.

How do I improve my dropshipping ROAS?

1) Source products with higher margins (aim for 40%+), 2) Improve ad creative and targeting, 3) Increase average order value with upsells, 4) Reduce supplier/shipping costs, 5) Test different audiences and ad formats.

Should I use Facebook or Google Ads for dropshipping?

Facebook/Meta Ads are most popular for dropshipping due to visual products and impulse buys. Google Ads can work for products with search demand. TikTok Ads are growing fast for younger demographics. Test both with small budgets.

ROAS Calculator

Dropshipping ROAS Calculator

Calculate your TRUE Dropshipping profit and ROAS. With low margins typical in dropshipping, see if your ads are actually profitable.

100% Free

Dropshipping Optimized

Instant Results

Dropshipping ROAS Calculator

Product Selling Price

Product Cost

Shipping Cost

Total Ad Spend

Units Sold

Your Dropshipping Results

Profitable

ROAS

3.00×

Break-even ROAS

1.77×

Net Profit

$69.90

Net Profit Margin

23.3%

Total Revenue

$299.90

Gross Profit

$169.90

Gross Margin

56.7%

Profit Breakdown (per unit)

Selling Price$29.99

- Product Cost$8.00

- Shipping$5.00

- Ad Cost/Unit$10.00

Net Profit/Unit$6.99

Great! Your dropshipping ads are generating healthy profits.

Dropshipping ROAS Benchmarks

Typical performance metrics for dropshipping businesses:

Metric	Typical Range	Notes
Typical Gross Margin	15-30%	Before ad spend
Break-even ROAS	3-7×	Depends on margins
Target ROAS (Profitable)	4-10×	To achieve 10%+ net margin
Facebook Ads Average	2-4×	Industry average
Winning Products	5-15×	Top performers

Dropshipping has lower margins than traditional ecommerce. You need higher ROAS to be profitable.

Dropshipping ROAS Formulas

Revenue

Selling Price × Units Sold

Total Cost

(Product Cost + Shipping) × Units

Gross Profit

Revenue - Total Cost

Gross Margin

Gross Profit ÷ Revenue

Net Profit

Gross Profit - Ad Spend

ROAS

Revenue ÷ Ad Spend

Break-even ROAS

1 ÷ Gross Margin

Example: Sell 10 units at $30, cost $13/unit, $100 ads → Revenue $300, ROAS 3×, but Break-even ROAS is 1.76× → Profitable!

Common Dropshipping ROAS Mistakes

Thinking 3× ROAS = Profit

With 20% margins, you need 5× ROAS just to break even. A 3× ROAS might mean you're losing money!

Ignoring All Costs

Don't forget: supplier cost, shipping, platform fees (2.9%+$0.30), payment processing, refunds, and returns.

Not Knowing Break-even ROAS

Calculate your break-even ROAS FIRST. If gross margin is 25%, break-even ROAS is 4×. Aim higher.

Scaling Unprofitable Products

If a product isn't profitable at small scale, scaling won't magically fix it. Fix unit economics first.

Frequently Asked Questions

⚠️ Note: This calculator provides estimates. Actual profit may vary based on refunds, chargebacks, returns, and hidden costs. Always track real performance in your store analytics.

Related Tools

Break-even ROAS Calculator

Find your minimum profitable ROAS

Ecommerce ROAS Calculator

Full ecommerce profit calculator

Facebook ROAS Calculator

Popular for dropshipping ads

Related Guides

What is a Good ROAS?

Understand ROAS benchmarks

How to Improve ROAS

Proven optimization strategies

ROAS Formula Guide

Master the ROAS calculation

Need to Calculate Break-even ROAS?

Know your minimum profitable ROAS before spending on ads.

Break-even Calculator Ecommerce Calculator