Break-even ROAS Calculator (100% FREE)
This break even ROAS calculator shows the return on ad spend you need to break even, based on what each order earns and costs before advertising.
Know the ROAS your ads actually need.
Free, no signup. Runs in your browser, nothing is sent anywhere.
2.50x
Below 2.50x, each ad driven order loses money.
| Revenue per order | $80.00 |
|---|---|
| Variable costs (no ads) | -$48.00 |
| Contribution before ads | $32.00 |
| Contribution margin | 40% |
| Most you can spend on ads per order | $32.00 |
Break-even ROAS = revenue ÷ (revenue − variable costs). Ad platform numbers and your real sales can differ, so compare with your store data.
How it works
How to use the Break-even ROAS Calculator in three steps.
- Step 1
Enter revenue per order
Use average revenue per order on a consistent tax basis.
- Step 2
Add variable costs
Include the costs that come with each order.
- Step 3
Compare with your ads
Review the break even ROAS and compare it with your ad results.
Examples
Break even ROAS, worked through.
Illustrative numbers to show the formula. They aren't benchmarks.
A typical store order
Input: Net revenue per order $80, variable costs $48. Below 2.50x, each ad driven order loses money.
ResultContribution $32. Break even ROAS = 80 / 32 = 2.50x. Allowable ad spend per order $32.
A thin margin product
Input: Net revenue per order $50, variable costs $40. A 3x ROAS looks good here but still loses about $6.67 on each $50 order.
ResultContribution $10. Break even ROAS = 50 / 10 = 5.00x. Allowable ad spend per order $10.
A high margin product
Input: Net revenue per order $120, variable costs $30. High margins leave far more room to pay for each order.
ResultContribution $90. Break even ROAS = 120 / 90 = 1.33x. Allowable ad spend per order $90.
Good to know
Reading ROAS properly.
Why a 2x ROAS may still lose money
ROAS is ad attributed revenue divided by ad spend; it isn't profit. A low margin business can lose money at a ROAS that looks impressive. Work out what's left after product and fulfillment before deciding what you can pay for an order.
Check attribution and fixed costs separately
Ad platform conversion values and real store sales can differ. The simple calculation covers per order contribution and leaves out fixed overhead. For a company level profit target, include overhead explicitly rather than trusting one universal threshold.
Formula
Contribution = net revenue per order minus non ad variable costs. Break even ROAS = revenue ÷ contribution, when contribution is above zero. Allowable ad spend per order equals the contribution. If costs are equal to or higher than revenue, there is no finite break even ROAS.
FAQ
Questions, answered.
What is break even ROAS?
The return on ad spend needed for sales contribution to cover ad spend under your cost assumptions.
How do I calculate break even ROAS?
Divide revenue per order by the contribution before ads, if it's positive.
Is 2x ROAS profitable?
Depends on margin. At a 50% contribution margin, 2x is break even; lower margins need a higher return.
Does break even ROAS include shipping and payment fees?
It should, when you enter them. Missing costs make the threshold too optimistic.
Should I include sales tax?
Use a consistent basis. Tax collected for remittance isn't your revenue.
Why is my calculator showing no possible break even?
Variable costs use up all revenue before ads, so nothing is left for advertising.
Ads not paying back? Let's fix that.
I run Google and Meta campaigns against real margins, not vanity ROAS.
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