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Launch Ads Toolkit
Want to know your break-even ROAS and profit target? This calculator will do all this for you. Simple, enter your COGS & your selling price & profit target and watch!
How much do you sell this product for? A good selling cost is over 3x for low ticket dropshipping or 1x-1.5x for high ticket dropshipping/service businesses.
The average fees are the fees of payment processors (Stripe, PayPal) and Shopify taxes. They are usually between 5-7%
Cost of Goods/Service (COGS) is how much you will pay to get the product delivered to customers including any additional fees.
What's the profit you're aiming to achieve? In dropshipping a good profit is between 20-30%
In accounting, the breakeven point is calculated by dividing the fixed costs of production by the price per unit minus the variable costs of production. The breakeven point is the level of production at which the costs of production equal the revenues for a product.
Break Even ROAS (Return On Ad Spent) is the number to know. This will tell you if your marketing is profitable or not.Your product profit margin is not 100%. The BE ROAS will be the determining number for profitability. As long as your ROAS is above B.E ROAS, you are profitable.
This must be the cost per purchase to achieve the profit you are targeting.
This must be the ROAS to achieve the profit you are targeting.
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