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Break Even ROAS Calculator
Find the lowest return on ad spend your store can afford. Enter your selling price and every cost per order to see your margin before ads, the break-even ROAS and CPA, and the target ROAS that leaves the profit percentage you want.
Last updated:
Per order
$
$
$
%
$
$
Packaging, platform fees, returns allowance.
Goal
% of revenue
0 = only break-even.
Enter your values to see the result.
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How to use the Break Even ROAS Calculator
- Enter the selling price or your average order value.
- Add every variable cost per order: product cost, shipping, payment fees and other costs.
- Set the net profit you want to keep after ads, as a percentage of revenue.
- Read the break-even ROAS and CPA; campaigns below that ROAS lose money.
- Use the target ROAS as the goal in your ad platform and check the profit table.
Break-even ROAS formula
- Profit before ads = price − COGS − shipping − payment fees − other costs
- Margin = profit before ads ÷ price
- Break-even ROAS = 1 ÷ margin = price ÷ profit before ads
- Break-even CPA = profit before ads
- Target ROAS = 1 ÷ (margin − desired profit margin)
Example: a $60 order with $18 COGS, $7 shipping, 2.9% + $0.30 fees ($2.04) and $2 other costs has $30.96 profit before ads, a 51.6% margin and a break-even ROAS of 1.94x. To keep 10% profit the target ROAS is 2.40x.
Break-even ROAS by margin
| Margin before ads | Break-even ROAS | ROAS for 10% profit | ROAS for 20% profit |
|---|---|---|---|
| 20% | 5.00x | 10.00x | not possible |
| 30% | 3.33x | 5.00x | 10.00x |
| 40% | 2.50x | 3.33x | 5.00x |
| 50% | 2.00x | 2.50x | 3.33x |
| 60% | 1.67x | 2.00x | 2.50x |
| 70% | 1.43x | 1.67x | 2.00x |
| 80% | 1.25x | 1.43x | 1.67x |
ROAS here means revenue ÷ ad spend. A ROAS shown as a percentage (e.g. 250%) is the same number × 100.
Frequently asked questions
How do you calculate break-even ROAS?
Break-even ROAS = 1 ÷ profit margin before ads = selling price ÷ profit per order before ads. With a $60 price and $29.04 of costs, profit is $30.96, the margin is 51.6% and break-even ROAS is 60 ÷ 30.96 = 1.94.
What is break-even CPA?
It is the most you can pay in advertising for one order without losing money: price minus all variable costs per order. In the example above that is $30.96.
How do I find the ROAS I need for a profit target?
Target ROAS = 1 ÷ (margin before ads − desired profit margin). With a 51.6% margin and a 10% profit target, target ROAS = 1 ÷ 0.416 = 2.40.
Why is my break-even ROAS so high?
Low margins push it up quickly. At a 50% margin you break even at 2x, at 25% you need 4x and at 10% you need 10x. Raising prices, bundling to increase order value or cutting product and shipping costs lowers the bar.
Should I include fixed costs like rent and salaries?
Not in break-even ROAS, which is about variable costs per order. Fixed costs are covered by the profit left after ads; set a profit target high enough to cover them, or use a break-even calculator for the whole business.
Does this account for repeat purchases?
No, it uses a single order. If customers buy again, a lower first-order ROAS can still be profitable over their lifetime; check customer lifetime value before cutting campaigns that look slightly below break-even.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.
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