Back to Tools
ROI Calculator for Dropshipping
Calculate your return on investment for advertising campaigns and product sourcing to make data-driven decisions.
Advertisement Space
ROI Calculator
How to Calculate ROI
- Enter your total advertising spend for the campaign
- Input the total sales generated from that campaign
- Add your product costs (what you paid your supplier)
- Include any other relevant costs (shipping, fees, etc.)
- Click "Calculate ROI" to see your results
- Use the data to optimize future campaigns
Understanding ROI in Dropshipping
- Positive ROI (>0%): Your campaign is profitable
- Negative ROI (<0%): You're losing money on this campaign
- ROAS (Revenue/Ad Spend): Aim for at least 3:1 for healthy margins
- Break-even ROI: The point where your net profit equals your ad spend
- LTV Consideration: Customer lifetime value can justify lower initial ROI
Related Articles
Optimizing Your Ad Spend for Maximum ROI
Strategies to reduce customer acquisition costs and improve your advertising returns.
Read ArticleCalculating Customer Lifetime Value for Dropshipping
How to measure long-term customer value to justify acquisition costs.
Read Article