Specialized Business
dropshipping true break even roas and profit margin calculator
Contribution per order = price − COGS − shipping − fees − return reserve. Break-even ROAS = price ÷ contribution. Margin % = contribution ÷ price.
Calculates the true break-even ROAS and profit margin for a dropshipping SKU after product cost, shipping, transaction fees, returns, and ad spend.
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Get true dropshipping break-even ROAS after COGS, ads, and fees. Free margin calculator, no sign up.
When to use this dropshipping true break even roas and profit margin
Common use cases
- Get true dropshipping break-even ROAS after COGS, ads, and fees. Free margin calculator, no sign up.
- Sanity-check with this case: $49 price, $14 COGS, $6 ship, 3% fee ($1.47), $2 return reserve → contribution $25.53. Break-even ROAS ≈ 49 / 25.53 = 1.92.
- The relationship is: Contribution per order = price − COGS − shipping − fees − return reserve. Break-even ROAS = price ÷ contribution. Margin % = contribution ÷ price.
Localized examples
- Specialized Business: the example on this page uses the same formula as the widget.
What you get
- Workspace controls for this exact question
- Contribution per order = price − COGS − shipping − fees − return reserve. Break-even ROAS = price ÷ contribution. Margin % = contribution ÷ price.
- Example on the page: $49 price, $14 COGS, $6 ship, 3% fee ($1.47), $2 return reserve → contribution $25.53. Break-even ROAS ≈ 49 / 25.53 = 1.92.
What is it?
Calculates the true break-even ROAS and profit margin for a dropshipping SKU after product cost, shipping, transaction fees, returns, and ad spend.
The Formula
Governing formula
Contribution per order = price − COGS − shipping − fees − return reserve. Break-even ROAS = price ÷ contribution. Margin % = contribution ÷ price.
Real-World Example
$49 price, $14 COGS, $6 ship, 3% fee ($1.47), $2 return reserve → contribution $25.53. Break-even ROAS ≈ 49 / 25.53 = 1.92.
Why It Matters
A 2.0 ROAS target is meaningless if contribution is thin. True break-even ROAS is the number that should gate every ad campaign.
Frequently Asked Questions
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