Break-Even ROAS Calculator
Find the lowest ROAS your ads can run at without losing money. Break-even ROAS is 1 divided by your contribution margin before ad spend.
How it works
Contribution per order = order value × (1 − refund rate) − fees − product cost − shipping − other variable costs. This is the most you can spend on ads to win one order and still break even, also called break-even CPA.
Break-even ROAS = order value ÷ contribution per order = 1 ÷ contribution margin. If your margin before ads is 40%, you need a ROAS of 2.5 to break even. To keep a target net margin, subtract it from the contribution first: target ROAS = order value ÷ (contribution − target margin × order value).
Numbers you enter yourself
We only pre-fill rates we could confirm on the platform's own page on 2026-10-29. These depend on your product or account, or could not be verified, so the calculator asks you for them:
- Platform / payment fee rate – enter your own; the Shopify, PayPal and Etsy pages above list the official rates. Source: www.shopify.com (checked 2026-10-29)
Frequently asked questions
What is break-even ROAS?
The return on ad spend at which ad revenue exactly covers product cost, fees, shipping and the ad spend itself, so profit is zero. Below it, every ad-driven sale loses money.
How do you calculate break-even ROAS?
Divide 1 by your contribution margin before ads. With a $60 order and $24 contribution, the margin is 40% and break-even ROAS is 60 ÷ 24 = 2.5.
What is a good ROAS?
Anything above your break-even ROAS is profitable on the first order. The calculator also shows the ROAS needed to keep a target net margin, which is the number to set as your ad target.
How do refunds affect break-even ROAS?
Refunded orders lose the revenue but usually not the ad spend, fees or shipping, so a higher refund rate lowers your contribution and raises the break-even ROAS.