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ROI Calculator

A breakeven ROAS depends on your product margin. As a general benchmark, a ROAS of 2x to 2.5x is often the breakeven point for most dropshipping stores with 30–40% gross margins. A ROAS of 3x or above typically means the campaign is profitable. However, the only true measure is net profit per order — which this tool calculates directly.

CPA (Cost Per Acquisition) is how much you spend in ads to generate one order. Your actual CPA must stay below your Break-even CPA for the campaign to be profitable. If your break-even CPA is $22 and your actual CPA is $30, you are losing $8 per order from ads alone, regardless of what your ROAS says.

A common rule is to spend 2–3x your product selling price in ad budget before judging a product. If your product sells for $40, spend $80–$120 to get statistically meaningful data. Do not kill a campaign too early based on one or two days of data — ad algorithms need time to optimise, typically 3–5 days minimum.

Both platforms work well, but they suit different products and audiences. TikTok tends to have lower CPCs and works best for impulse-buy products targeting 18–35 year olds with strong visual appeal. Facebook has more mature targeting tools and higher purchasing intent, making it better for higher-ticket items or older demographics. Many successful stores test both simultaneously.

For cold paid traffic to a dropshipping store, a conversion rate of 1–3% is typical. Below 1% usually signals a problem with the product page, pricing, or audience targeting. Above 3% is strong and suggests you have found a winning product-audience fit. Your store's speed, trust signals, and product images all significantly impact conversion rate.