Free ROAS calculator

Break-even ROAS calculator

What ROAS do your ads need to break even? Enter one order’s price and costs to see the ROAS and CPA where ad spend stops losing money, and what it takes to hit your profit target.

By Trueclip Updated

Your order

Amounts in USD, per order

What a customer pays per order

Landed cost of goods per order

Postage, picking and packing

Profit you want after ad spend

Fees and other costs

Share of the order, e.g. 3%

Returns, apps, packaging

Break-even ROAS

Below this, each sale from ads loses money

1.75×

Contribution margin 57%. Every $1 of ad spend must bring back $1.75 in sales to break even.

Break-even CPA
$28.50
ROAS for 10% profit
2.13×
CPA up to $23.50
Where a $50.00 order goes
  • Product$15.00
  • Shipping$5.00
  • Fees$1.50
  • Other$0.00
  • Left for ads + profit$28.50

How it works

Break-even ROAS formula: 1 ÷ your margin

Ads are paid from what each order leaves after costs. When ad spend uses all of it, you break even.

  • Contribution

    Price − product − shipping − fees − other costs.

  • Break-even ROAS

    1 ÷ contribution margin.

  • Break-even CPA

    The contribution left on one order.

Worked example: one $50 order
Order value
$50.00
− Product
$15.00
− Shipping
$5.00
− Fees (3%)
$1.50
Contribution (57%)
$28.50
Break-even ROAS 1.75× · for 10% profit 2.13×

Break-even ROAS by margin

Break-even ROAS and ROAS needed for a 10% profit, by contribution margin
MarginBreak-even10% profit
20%5.00×10.00×
30%3.33×5.00×
40%2.50×3.33×
50%2.00×2.50×
60%1.67×2.00×
70%1.43×1.67×

One order only: leaves out repeat purchases, fixed costs and taxes. Check platform ROAS against your own store sales.

What is a good ROAS?

It depends on your margin. Set three levels instead of one magic number. Example: a 50% margin.

  1. Break-even ROAS

    2.00×

    No profit, no loss. Your floor.

  2. Target ROAS

    2.50×

    Break-even plus your profit goal (10% here).

  3. Testing ROAS

    Near break-even

    A short, planned window for new creative or audiences.

5 ways to lower your break-even ROAS

Break-even ROAS falls when your margin rises. These are the levers.

  • Raise order value

    Bundles, multi-packs or a free-shipping threshold spread fixed costs.

  • Cut product cost

    Better supplier terms or larger batches lower landed cost.

  • Ship for less

    Lighter packaging and negotiated rates keep more per order.

  • Reduce returns

    Clear sizing, photos and real customer videos set honest expectations.

  • Test a price rise

    A small increase can move break-even more than weeks of ad tuning.

ROAS, MER and POAS

Three ways to read ad performance. Break-even ROAS turns the first into a profit signal.

MetricFormulaUse it for
ROASAd-attributed revenue ÷ ad spendComparing campaigns and channels
MERTotal revenue ÷ total ad spendBlended health, no attribution fights
POASProfit from ad orders ÷ ad spendProfit directly; 1.0 is break-even

FAQ

Questions.

What is break-even ROAS?

Break-even ROAS is the return on ad spend at which an order from an ad makes zero profit. Below it, every sale from that ad loses money. Above it, the ad pays for itself and some of the margin is left over.

How do you calculate break-even ROAS?

Divide 1 by your contribution margin. Contribution margin is the share of the order left after product cost, shipping, payment fees and other per-order costs. A 40% margin gives 1 ÷ 0.40 = 2.5, so you need $2.50 in sales for every $1 of ad spend.

What is a good ROAS for a Shopify store?

There is no single good number, because it depends on your margin. A store with a 70% margin breaks even at 1.43×, while one with a 25% margin needs 4×. A good ROAS is one above your break-even ROAS by enough to cover your profit target and fixed costs.

What is the difference between break-even ROAS and break-even CPA?

They describe the same point in two ways. Break-even ROAS is revenue per $1 of ad spend. Break-even CPA is the most you can pay in ads for one order, which equals your contribution per order. Use ROAS when order values vary and CPA when they are fairly stable.

Should shipping and payment fees be included?

Yes. Any cost you pay on every order reduces what is left for ads. Leaving out shipping or payment fees makes your break-even ROAS look lower than it really is, so campaigns can look profitable when they are not.

Why does the ROAS in Meta or TikTok differ from my store data?

Ad platforms count conversions with their own attribution windows and modelling, and they can credit the same order to more than one channel. Compare platform ROAS with the revenue your store actually records, or track blended numbers such as MER alongside it.

Does this calculator account for repeat purchases?

No. It uses one order, which is the safest starting point. If customers reliably buy again, you may accept a first-order ROAS below break-even, but only if you know your repeat rate and margin on later orders.

Margin sets the target. Creative decides if you hit it.

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