Dropshipping ROAS Calculator
Calculate, analyze & optimize your ad returns
Campaign Data
ROAS Analysis
Enter campaign data to calculate ROAS
When To Use This Calculator
Daily Campaign Check
Spent $200 yesterday, made $600 in sales. Is that good? Calculate ROAS (3x) and compare to your break-even (2.5x). You're profitable.
Setting Ad Targets
Before launching, know your minimum ROAS. 30% margin means you need 3.33x just to break even. Set your target at 4x for healthy profit.
Scale or Kill Decisions
Campaign at 2.2x ROAS but break-even is 2.5x. You're losing money. Either optimize or kill it - don't keep spending hoping it improves.
Pricing Validation
Your product needs 5x ROAS to profit. That's hard to hit consistently. Maybe raise prices to improve margin and lower the ROAS requirement.
ROAS vs ACOS Conversion
Amazon uses ACOS, Facebook uses ROAS. Your Amazon ACOS is 25% - what's that in ROAS? It's 4x. Now you can compare platforms.
Profit Forecasting
At 3.5x ROAS with $5000 ad spend, you'll make $17,500 revenue. With 35% margin, that's $6,125 gross profit minus $5000 ads = $1,125 net.
Frequently Asked Questions
Is 2x ROAS good or bad?
Depends entirely on your margin. With 50% margin, 2x ROAS is break-even. With 30% margin, 2x ROAS means you're losing money. Always compare to YOUR break-even ROAS, not arbitrary benchmarks.
Why do some people say 3x ROAS is the goal?
It's a rough rule of thumb assuming ~33% profit margin, which is common in dropshipping. But it's not universal. High-margin products can profit at 2x. Low-margin products might need 5x+.
My ROAS is great but I'm still not making money. Why?
ROAS only measures revenue vs ad spend. Check: (1) Are you calculating margin correctly? (2) Did you include ALL costs - shipping, fees, refunds? (3) Is your break-even ROAS actually lower than you think?
Should I use ROAS or CPA to measure success?
Both are useful. ROAS is better for comparing campaigns at different scales. CPA is better for budgeting (you know exactly what each customer costs). Most pros track both.
How does ROAS change when I scale?
Usually ROAS drops as you scale because you exhaust the best audiences first. A campaign at 4x ROAS with $50/day might drop to 3x at $200/day. Factor this into scaling plans.
What's the relationship between ROAS and ACOS?
They're inverses. ROAS = Revenue/Spend. ACOS = Spend/Revenue × 100. So 4x ROAS = 25% ACOS. 2x ROAS = 50% ACOS. Use whichever your platform reports.
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