Dropshipping Break-even Calculator
Break-even is the ad cost per sale at which you neither make nor lose money. This calculator gives your maximum ad cost per order and the minimum ROAS your ads must reach.
What is break-even in dropshipping?
Break-even CPA = selling price − product cost − shipping − fees. Break-even ROAS = selling price ÷ break-even CPA. Above these numbers you lose money on every sale.
How to use the dropshipping break even calculator (formula)
What each field means
- Selling price — Price the customer pays.
- Product cost — Supplier cost.
- Shipping cost — Shipping to the customer.
- Payment fee — Payment processor fee.
- Platform fee — Store platform fee per order.
Worked example
Using these numbers: selling price $34.99, product cost $8.00, shipping cost $4.50, payment fee $1.30, platform fee $0.50.
The maximum ad cost per order is $20.69.
- Break-even ROAS: 1.69x
- Break-even margin: 59.1%
How far above break-even should I aim?
Treat break-even as the floor. A target CPA 25–40% below break-even CPA leaves real profit and room for refunds.
Tips to improve your result
- Write your break-even CPA next to every campaign.
- Recalculate when supplier prices change.
- Use ROAS as a quick check and CPA as the decision number.
- Higher prices raise break-even CPA more than small cost cuts.
Frequently asked questions
How do I calculate break-even ROAS?
Divide the selling price by the profit before ads (selling price minus all non-ad costs).
What is a good break-even ROAS?
Lower is better. Under 2 means healthy margins; above 3 means ads must perform very well just to break even.
Is break-even CPA the same as target CPA?
No. Break-even CPA earns zero profit; target CPA should be lower to leave margin.
Why does my ROAS look good but I lose money?
Your ROAS is probably below break-even ROAS once shipping, fees and refunds are counted.
You might also need
Break-even ROAS CalculatorThe minimum ROAS your margin allows.
ROAS CalculatorReturn on ad spend from revenue and spend.
Dropshipping Profit CalculatorProfit per order, break-even CPA and ROAS.
Want help improving these numbers?
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