Free calculator
Break-Even ROAS Calculator
The lowest ROAS your ads can run at before each order loses money.
Inputs
Results
Break-even ROAS
1.75x
Ads must return at least this much revenue per dollar.
- Break-even CPA$34.20
- Profit before ads$34.20
- Fees per order$1.80
- Margin before ads57.0%
Formula
- Profit before ads = price − product cost − shipping − fees
- Break-even ROAS = price ÷ profit before ads
- Break-even CPA = profit before ads
FAQ
What is break-even ROAS?+
Break-even ROAS is the return on ad spend at which an order covers its product cost, shipping, fees and the ad spend that won it, and nothing more. Above it each order makes money. Below it each order loses money.
How do I calculate break-even ROAS?+
Subtract product cost, shipping and payment fees from the selling price to get profit before ads. Divide the price by that profit. A $50 product with $30 of profit before ads breaks even at a ROAS of 1.67.
What is a good ROAS for a Shopify store?+
Any ROAS above your break-even figure is profitable on the first order. Many brands set a target 20 to 50 percent above break-even to cover returns, overhead and campaigns that underperform.
What is the difference between break-even ROAS and break-even CPA?+
Break-even CPA is the most you can pay in ads to win one order. Break-even ROAS expresses the same limit as revenue per ad dollar. They describe one threshold in two units.
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