Dropshipping fees in this calculation
Presets reflect typical Dropshipping economics (verified 2026-07-23) — adjust every field to your actual numbers. Estimates only.
| Supplier product cost The AliExpress/CJ/private-agent unit price | your quote |
| Supplier shipping Often the second-largest cost — never skip it | $4–$12 typical |
| Payment processing Stripe/PayPal standard card rates | ~2.9% + 30¢ |
Worked examples
Typical dropship product
| Selling price | $40.00 |
| All per-order costs | $21.46 |
| Contribution margin | $18.54 |
| Break-even ROAS | 2.16× |
Supplier cost + supplier shipping = the real "COGS" of dropshipping.
Thin-margin trending product
| Selling price | $25.00 |
| All per-order costs | $18.03 |
| Contribution margin | $6.97 |
| Break-even ROAS | 3.59× |
Only $6.97 margin — a 3.6× floor most ad accounts cannot sustain.
Break-even ROAS by margin — quick reference
| Gross margin (after fees) | Break-even ROAS |
| 20% | 5.00× |
| 25% | 4.00× |
| 33% | 3.03× |
| 40% | 2.50× |
| 50% | 2.00× |
| 60% | 1.67× |
Frequently asked questions
What is a good ROAS for dropshipping?
Higher than for stores holding inventory: dropship margins are thinner and paid ads drive nearly all revenue. Most viable dropship products need a break-even ROAS of 2–3.5×, so profitable campaigns typically run 3–5×. Compute your own floor before trusting any benchmark.
Should I include supplier shipping in the calculation?
Always. Supplier shipping is frequently $4–$12 per order — often more than processing fees and sometimes rivaling the product cost. Leaving it out is the most common reason dropshippers think a losing campaign is profitable.
Why did my profitable campaign become unprofitable at scale?
Scaling raises CPMs and reaches colder audiences, so ROAS falls toward — then through — your break-even. Knowing the exact floor tells you when to cap budgets: the campaign is over the cliff the day its ROAS crosses that line, not when cash runs out.
How do refunds and chargebacks change my floor?
Dropshipping return and chargeback rates run higher than average because of long shipping times. Every refunded order pays supplier costs twice (product out, revenue back). Add a 5–15% buffer above the calculated floor depending on your dispute rate.