Break-Even ROAS Calculator
Find the return on ad spend you need to break even and the ROAS that keeps the profit you want, from your real order costs.
How to Use the Break-Even ROAS Calculator
- Enter your average order value.
- Add product cost, shipping, payment fees and any other cost per order.
- Set the profit you want to keep after ads.
- Compare the target ROAS with what your ad platform reports.
The Formula
Break-even ROAS is your average order value divided by your profit per order before ad spend. If an $85 order leaves you $48.95 after product cost, shipping and fees, you need $1.74 in sales for every $1 of ads just to stay even. That's a break-even ROAS of 1.74, and it's the example already loaded in the calculator.
Below that number, every sale from ads loses money. Above it, you're profitable on the first order, before counting repeat purchases.
Use It to Set Bids
Set target ROAS bids at or above your target, not your break-even. Ad platforms count revenue they think they drove, which can include sales that would have happened anyway, so leave a cushion. If you sell subscriptions or get lots of repeat orders, the CAC calculator gives a better view of what a customer is worth over time.
Frequently Asked Questions
What's a good ROAS?
Whatever beats your break-even with room for profit. A store with 70% margins can thrive at 2x, while one with 25% margins loses money below 4x.
Should I include my agency fee?
Not per order. Fixed costs like fees and software belong in the CAC calculator. This one covers costs that rise with every order.
Is ROAS the same as ROI?
No. ROAS is revenue divided by ad spend. ROI also subtracts your costs, which is why ROAS needs to be well above 1 to make money.
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