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Break-Even ROAS Calculator

Enter your selling price, cost of goods, and fees to find the ROAS where your ads stop losing money. Add a profit goal to get the target ROAS to run at, and check your actual ROAS against it.

Break-even ROAS
$

Average order value per purchase.

$

Product cost per order.

$

Packaging, pick & pack, postage.

% of price

Processing, marketplace, or app fees.

$

Returns allowance, inserts, etc.

Target and actuals

% of price

Profit you want per order.

$

From ads, same period.

$

Same period.

Break-even ROAS

2.02×

$80 ÷ $39.60 contribution margin = 2.02× ROAS to break even

Contribution margin
$39.60 · 49.5%
Break-even CPA
$39.60
Target ROAS for 20% profit
3.39×
Your actual ROAS
Add revenue and spend

Profit per order at different ROAS levels

Ad cost per order = price ÷ ROAS.

ROASAd cost per orderProfit per orderProfit margin
1×$80-$40.40-50.5%
1.5×$53.33-$13.73-17.2%
2×break-even$40-$0.40-0.5%
2.5×$32$7.609.5%
3×$26.67$12.9316.2%
4×$20$19.6024.5%
5×$16$23.6029.5%
6×$13.33$26.2732.8%

Works for any product or service with a known price and cost per order. Free, instant, no sign-up.

How to calculate break-even ROAS

Start from what you keep on each order after variable costs. Break-even ROAS is the price divided by that margin; target ROAS adds the profit you want to earn.

Contribution margin

Margin = Price − COGS − Shipping − Fees

$80 − $30 − $8 − $2.40 = $39.60

What one order contributes before ad spend. This is also your break-even CPA.

Break-even ROAS

Break-even ROAS = Price ÷ Margin

$80 ÷ $39.60 = 2.02×

The return on ad spend at which the campaign makes exactly zero profit.

Target ROAS

Target = Price ÷ (Margin − Price × Profit %)

$80 ÷ ($39.60 − $16) = 3.39×

The ROAS to run at if you want to keep a set profit, here 20% of price, on every order.

Worked example

A product sells for $80, costs $30 to make, $8 to ship, and loses 3% to payment fees, leaving a $39.60 contribution margin. Ads break even at a 2.02× ROAS, which is the same as paying $39.60 per sale. To keep $16 of profit per order, you need a 3.39× ROAS. A campaign running at 3.0× is profitable but short of that goal.

Break-even ROAS vs target ROAS

ROAS, return on ad spend, is revenue divided by ad spend. It is the most quoted metric in paid media and the easiest to misread, because revenue is not profit. A 3× ROAS means $3 of revenue for every $1 of ads; whether that is a win depends entirely on what it costs you to deliver the $3.

Break-even ROAS is the line between profit and loss. Divide the selling price by the contribution margin and you get the ROAS at which ad spend exactly consumes the margin. Everything above it is profit on the first order; everything below it is a loss you are only justified in taking if customers come back.

Target ROAS is the number to actually run campaigns at. Decide how much profit you want to keep per order, subtract it from the margin, and the calculator gives the ROAS that delivers it. Use that as your campaign bid target and the break-even as the floor you never go under for long.

Costs to include

  • Cost of goods: what the product costs you per unit, landed.

  • Shipping and fulfillment: packaging, pick and pack, postage, and any 3PL fees.

  • Payment and platform fees: card processing, marketplace commission, app fees, as a share of price.

  • Returns and refunds: an allowance per order based on your return rate.

  • Leave out fixed costs such as rent, salaries, and software; they do not change per order.

How to improve ROAS

ROAS rises when the same spend produces more revenue: better creative, better audiences, and faster reallocation.

1

Refresh creative before it fatigues

Fresh hooks keep click-through and conversion rates high, which is where most ROAS decline begins.

AI Video Ads
2

Build from proven winners

Start campaigns from the creative, copy, and audience combinations that already beat your target.

AI Campaign Builder
3

Test at scale

Launch hundreds of variations to find the combinations that clear your target ROAS fastest.

Bulk Ad Launch
4

Reallocate automatically

Move budget toward ad sets above target and away from the ones sliding toward break-even.

AI Media Buyer

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