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.
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
Model cost-per-lead and sales closing rates
WordStream's 23 business categories. Pick the closest one to your business.
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.
| Platform | Avg CPC | Clicks that must buy | Published conversion rate |
|---|---|---|---|
| Google search ads | $4.14 | 11.40% | 4.01% |
| Meta traffic campaigns | $0.59 | 1.62% | 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
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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