Questions people ask
How do you calculate break-even ROAS?
One divided by your contribution margin. If the price is 60, the product costs 18, shipping is 6 and fees are 2, you keep 34 of every 60, a 57 percent margin, so break-even ROAS is 1 ÷ 0.57, about 1.76. Below that every order loses money.
What is a good ROAS for Facebook ads?
There is no universal number. A good ROAS is comfortably above your own break-even. A 3.0 ROAS is excellent on a 60 percent margin and a loss on a 25 percent margin. Work out your break-even first, then judge the dashboard against it.
Why is my break-even ROAS for dropshipping so high?
Because the margin is thin. With 35 percent cost of goods, 15 percent shipping and 5 percent fees you keep 45 percent, so break-even is 2.2 before any profit. That is why dropshipping stores need either a higher price or a lower supplier cost before ads can work.
Should I enter ROAS as a percentage or a decimal?
Google Ads takes target ROAS as a percentage, so 2.5 goes in as 250 percent. Meta takes a decimal ROAS goal, so 2.5 stays 2.5. The calculator shows both.