Paid Advertising & Growth•Pre-Configured Scenario (2026-11-10)

Shopify Dropshipping Break-Even ROAS & CPA Calculator

Calculate break-even ROAS and maximum allowable CPA for Shopify dropshipping products ($65 AOV). Factor in COGS, shipping, and Stripe payment fees.

Step 1

Unit Economics & Costs

$

Retail selling price or contract deal size

$

Direct fulfillment / supplier cost per unit

$

Outbound parcel freight & box packing

%

Percentage your gateway takes, for example 2.9%

$

Flat part of the fee, for example $0.30. Use 0 if none

$

Media retainer or ad automation tool cost

Used to amortize monthly retainer overhead

%

Target net margin left over after all ad spend

Enable Lead Generation / CPL Mode

Model cost-per-lead and sales closing rates

WordStream's 23 business categories. Pick the closest one to your business.

Primary Ad Threshold
1.79x
needed to avoid losing cash.
$36.31
Contribution Margin
$36.31
55.9% of price
Target ROAS (20%)
2.79x
CPA: $23.31
Payment & Fees
$2.18
Gateway deductions
Agency Cut / Unit
$0.00
Overhead per order

Shopping, Collectibles & Gifts: average ad costs

Average cost per click, and the share of clicks that must end in a sale for you to break even at that click cost.

PlatformAvg CPCClicks that must buyPublished conversion rate
Google search ads$4.1411.40%4.01%
Meta traffic campaigns$0.591.62%Not published

Google's published conversion rate counts every conversion action advertisers track, not only sales, and WordStream publishes no purchase rate for Meta, so no pass or fail is given here.

Averages across WordStream's client accounts (Google Ads and Facebook Ads Benchmarks 2026), checked 2026-11-10. Your own costs will differ. Google Ads Benchmarks 2026 · Facebook Ads Benchmarks 2026

SK
Sushant KhatriMaintainer

Vsurge Media • Performance Marketing & Web Software

Maintains this calculator at Vsurge Media. The break-even ROAS and CPA figures are plain unit-economics maths on the numbers you enter. The industry averages are copied from WordStream's 2026 Google Ads and Facebook Ads benchmark reports.

Benchmarks Copied From WordStream
Last Checked:2026-11-10
Formulas:Contribution margin, break-even CPA, ROAS
Industry data:WordStream 2026 (Google & Meta)
The date shown is the last time the averages were compared with WordStream's published tables.

Notes for This Preset

Example inputs: a $65.00 order, $22.00 product cost, $4.50 shipping and a 2.9% + $0.30 card fee ($2.18). Contribution margin is $36.31 (55.9%), so break-even CPA is $36.31 and break-even ROAS is 1.79x. To keep a 20% net margin ($13.00 per order), target CPA is $23.31 and target ROAS is 2.79x. WordStream's 2026 averages for Shopping, Collectibles & Gifts (checked 10 Nov 2026) are $4.14 per click on Google search and $0.59 per click on Meta traffic campaigns. At break-even, 11.4% of Google clicks, or 1.6% of Meta clicks, would have to end in a sale. WordStream's published Google conversion rate for the category is 4.01%, and it counts every conversion type, not only sales. A higher order value or an upsell lowers the click-to-sale rate you need.

How can I lower my break-even ROAS?

Three primary levers: increase Average Order Value (AOV) via post-purchase upsells and cross-sell bundles, negotiate lower supplier/COGS rates at volume, or lower payment processing and fulfillment costs. Increasing contribution margin lowers your required break-even ROAS, allowing you to bid more aggressively in competitive ad auctions.

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