EStore Tools

Break-Even ROAS Calculator

Find the ROAS your ads need to stop losing money, plus break-even CPA and the most you can pay per click.

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Your numbers

$
$

What you pay, minus any shipping the customer pays.

$
%

As a % of order value, for the target ROAS.

%

Used for the maximum cost per click.

%

Your result · updates as you type

Break-even ROAS

2.05x

Below 2.05x your ads lose money. Each order leaves $29.20 to pay for advertising, which is 48.7% of the order.

Break-even cost per purchase
$29.20
Target ROAS (10% profit)
2.59x
Max cost per click
$0.73

Set your campaign's target ROAS at or above the target figure, not the break-even one. Platform-reported ROAS usually overstates results, so leave some headroom.

Breakdown

Order value
$60.00
Product cost
−$22.00
Shipping and fulfilment
−$7.00
Payment fees
−$1.80
Left for advertising
$29.20

The break-even ROAS formula

Break-even ROAS is the return on ad spend where the ads exactly pay for themselves, after product, shipping and payment costs.

Break-even ROAS = order value ÷ what's left of each order before ad spend
Target ROAS = order value ÷ (what's left − profit you want per order)
Maximum CPC = break-even cost per purchase × conversion rate

Example

Average order value
$60.00
Product cost
$22.00
Shipping and fulfilment
$7.00
Payment fees (3%)
$1.80
Left for advertising
$29.20

Break-even ROAS = 60 ÷ 29.20 = 2.05x. At a 2.5% conversion rate you can pay up to $0.73 per click.

Using it in Google Ads and Meta

  • Set target ROAS bids at the target figure, not the break-even one. Platform-reported ROAS usually overstates results, so leave headroom.
  • Different products, different targets. A 70% margin product and a 25% margin product need very different ROAS. Group them into separate campaigns.
  • Watch returns. If 15% of orders come back, your real ROAS is 15% lower than the dashboard says.

Questions people ask

What's a good ROAS for ecommerce?

Any ROAS above your break-even figure. There's no universal number, because break-even depends entirely on your margins.

Why is my break-even ROAS so high?

Low margin after costs. At 20% left over per order, you need 5x just to break even. Raising prices or AOV lowers it faster than better ads.

Should shipping be in the calculation?

Enter the shipping you pay minus what the customer pays. If customers cover it fully, leave it at zero.

How does this relate to POAS?

At break-even ROAS, POAS is exactly 1.0x. Both answer the same question from different directions.

Related tools

POAS CalculatorJudge ads by profit, not revenue: profit on ad spend, break-even ROAS and what's left after ads.MER CalculatorMeasure all marketing against all revenue, and find the MER you need to break even or hit a profit target.Contribution Margin CalculatorWork out CM1, CM2 and CM3 per order to see what each sale really leaves after product, fulfilment and marketing costs.Discount Break-Even CalculatorSee how many more units you need to sell before a discount actually makes you money.

Want this builtinto your store?

I'm Emmanuel, a Shopify and WooCommerce developer. If this tool pointed at something you'd rather have fixed for you (a faster store, cleaner product data, a migration, a custom feature), send me a note.

Emmanuel Asika

Emmanuel Asika

Shopify & WooCommerce developer, Dublin

I build and fix online stores: new builds, migrations, speed, SEO and the custom bits apps can't do.

hello@emmanuelasika.com
See my work

Last reviewed 29 September 2026.