Profitability calculator
Break Even ROAS Calculator
Find the minimum ROAS your ecommerce offer needs to cover product, fulfillment, payment, and other variable costs. Use this free break-even ROAS calculator before you scale a campaign.
How it works
Use the tool in three steps
Keep the reporting period consistent across ad spend, attributed revenue, orders, and costs. The calculator updates the result when you calculate again.
Practical decision guide
How to use this break even roas calculator
The break even roas calculator is most useful when it supports a specific decision: whether to scale, change the offer, reduce an acquisition cost, or pause a campaign for better data. Keep the inputs visible and explain what the result includes before sharing it with a client or team.
Use this break even roas calculator when the real question is not only how much revenue came back, but how much revenue is required to pay for every variable cost in an order. Start with one reporting window and use the same average order value, ad spend, and order count across the inputs.
The result gives you a financial floor for campaign decisions. When actual ROAS is below break-even ROAS, additional spend can increase the amount of contribution profit at risk. When actual ROAS is above the floor, compare the gap with refunds, overhead, desired profit, and attribution uncertainty before calling a campaign scalable.
For a practical decision, calculate the floor for each important product or offer instead of applying one store-wide average. Review the result whenever prices, fulfillment costs, discounts, or refund behavior change, because the minimum profitable ROAS moves with those assumptions.
Before making a budget change, compare the calculated result with the full business context. Attribution can move, costs can change, and a result based on a short window may not represent mature customer behavior. Use the break even roas calculator as a clear starting point, then validate the assumptions with order and financial data.
For recurring reviews, create a simple habit around the output. Check whether the numbers are complete, compare actual ROAS with the break-even or target threshold, and then inspect the cost lines that changed. If the result moves sharply, identify whether the cause was ad spend, conversion rate, average order value, supplier cost, or attribution. Recording the campaign name, date range, currency, attribution window, and whether the result is platform-attributed or blended makes later comparisons much safer.
Checks that improve the result
Transparent methodology
How the break-even ROAS formula works
Break-even ROAS = revenue per order ÷ contribution margin per order. Contribution margin is revenue after COGS, shipping, payment fees, refunds, discounts, and other variable costs. A lower break-even ROAS usually means you have more room to buy traffic profitably.
The important distinction
Basic ROAS tells you how much attributed revenue came back for each currency unit spent on ads. Break-even and target ROAS add your unit economics, so they are more useful when the question is “can I scale this profitably?”
Accuracy and limitations
This tool is designed for planning and decision support. Use consistent numbers, check attribution settings, and compare the result with your full business P&L before making a large budget change.
- The result only includes costs you enter. Add taxes, refunds, overhead, and agency fees separately when they materially affect your margin.
- Attribution windows and platform reporting can make measured ROAS different from blended business ROAS.
FAQ
Questions about ROAS calculations
What is a good break-even ROAS?
A good break-even ROAS is low enough to leave room for your target profit, testing budget, and attribution variance. The correct value depends on your contribution margin, not on a universal benchmark.
Is BEROAS the same as break-even ROAS?
Yes. BEROAS, BE ROAS, and break-even ROAS describe the revenue-to-ad-cost ratio at which the costs entered in the calculator are covered.
Does break-even ROAS include product cost?
It does when you enter product cost or COGS per order. Basic ROAS does not automatically include product, shipping, payment, refund, or overhead costs.
Can I use this for Meta Ads or Shopify?
Yes. Use your attributed revenue and per-order costs. For platform-specific metrics such as CTR, CPC, and conversion rate, use the Meta Ads ROAS Calculator page.