ROAS Calculator for Dropshippers
Calculate Return on Ad Spend in seconds. Add COGS and fees to see the net ROAS that actually pays the bills — plus the break-even ROAS your margins require.
Your Numbers
Optional. Add product cost, payment processing, and platform fees to see net ROAS and break-even.
Gross ROAS above 2x gives room for COGS and fees. Check Net ROAS with Advanced inputs to confirm real profit at your margins.
Formulas used
- ROAS = Revenue / Ad Spend
- Net ROAS = (Revenue − COGS − Fees) / Ad Spend
- Profit = Revenue − Ad Spend − COGS − Fees
- Break-even ROAS = 1 / (1 − COGS%/Revenue − Fee%)
Pure arithmetic only. No surveyed benchmarks, no 'industry average' claims. Tiers reflect break-even math, not empirical data.
How to calculate ROAS
Three inputs, real numbers, no guesswork.
Enter ad spend + revenue
Pull these from Facebook Ads Manager, TikTok Ads, or your Shopify dashboard for the campaign window you want to evaluate.
Toggle Advanced for net math
Add COGS (supplier price + shipping per unit × orders), payment processing (~2.9%), and platform fees to see post-fee ROAS.
Compare to break-even ROAS
If gross ROAS is below the break-even number, your margins can't absorb the ad cost. Adjust price, product, or creative.
Frequently asked questions
What is ROAS?
ROAS (Return on Ad Spend) is revenue generated per dollar of ad spend. A ROAS of 3x means you earned $3 of revenue for every $1 spent on ads. It measures ad efficiency only — it does not account for product cost, fees, or profit.
What is a good ROAS for dropshipping?
There is no universal number. What matters is whether ROAS exceeds your break-even ROAS, which depends on your gross margin. If your product cost + fees eat 60% of revenue, your contribution margin is 40% and break-even ROAS is 1 / 0.4 = 2.5x. Aim above that. This calculator computes the exact break-even for your inputs.
ROAS vs ROI — what's the difference?
ROAS measures revenue per ad dollar. ROI (Return on Investment) measures profit per dollar invested across all costs. ROAS of 3x can still be unprofitable if COGS + fees exceed 2/3 of revenue. Net ROAS in this calculator is closer to ROI because it subtracts COGS and fees before dividing by ad spend.
Why is my Net ROAS lower than Gross ROAS?
Gross ROAS is Revenue / Ad Spend. Net ROAS subtracts COGS, payment processing, and platform fees from revenue before dividing. Net ROAS always trails Gross ROAS — the gap reflects your true cost structure. If Net ROAS is below 1x, the campaign loses money overall even when Gross ROAS looks fine.
Ad math is one piece — pick winning products too
AliShopping Tools scores every AliExpress product you view with a Winning Score so you start from products that are easier to scale profitably — then the ROAS math stays in the green.
100% free. No credit card. Works in any Chromium browser.