ROAS and break-even ROAS calculator
ROAS (return on ad spend) is revenue from ads divided by ad spend. Break-even ROAS is where an order pays for itself: your price divided by what is left after product cost, shipping and fees.
ROAS calculator
Results
Profitable at your target
- Your ROAS
- 3.00
- Break-even
- 2.00
- Target
- 2.50
Your ROAS of 3.00 clears break-even (2.00) and your target of 2.50.
- Margin before ads
- $25.00
- Price minus product, shipping, fees and other costs
- Break-even CPA
- $25.00
- Cost per acquisition: the most you can pay in ads per order
- Target CPA
- $20.00
- Cost per order in ads that keeps your target profit
Starts with the worked example below.
How to calculate ROAS and break-even ROAS
Where each $50 sale goes
- Product cost $15, 30%
- Shipping and fulfillment $6, 12%
- Payment and platform fees $1.50, 3%
- Other costs per order $2.50, 5%
- Margin before ads $25, 50%
| Metric | Formula | Worked example |
|---|---|---|
| ROAS | Formularevenue from ads / ad spend | Worked example$6,000 / $2,000 = 3.00 |
| Margin before ads | Formulaprice − product cost − shipping − fees − other costs | Worked example$50 − $15 − $6 − $1.50 − $2.50 = $25 |
| Break-even ROAS | Formulaprice / margin before ads | Worked example$50 / $25 = 2.00 |
| Break-even CPA (cost per acquisition) | Formulamargin before ads | Worked example$25 |
| Target ROAS | Formulaprice / (margin before ads − target profit) | Worked example$50 / ($25 − $5) = 2.50 |
| Target CPA | Formulamargin before ads − target profit | Worked example$25 − $5 = $20 |
A ROAS of 3.00 clears both, so in this example the ads are profitable at the order level. Break-even ROAS only exists when the margin before ads is above zero.
What is a good ROAS for an online store?
A good ROAS is one above your break-even ROAS, with room for the profit you want. There is no universal number: as Shopify (opens in a new tab) notes, an acceptable ROAS depends on your margins, operating costs and goals. The same ROAS can be a great result for a high-margin product and a loss for a low-margin one.
Break-even ROAS is simply 1 divided by your margin before ads, taken as a share of the price. This table is that arithmetic, not a benchmark:
| Margin before ads | Break-even ROAS |
|---|---|
| 20% | 5.00 |
| 25% | 4.00 |
| 33% | 3.00 |
| 40% | 2.50 |
| 50% | 2.00 |
| 60% | 1.67 |
If customers reorder, some stores accept a first-order ROAS below break-even and earn the profit on later orders. Only do this if your own data shows your repeat rate.
ROAS FAQ
More questions? Email [email protected].
What does ROAS stand for?
Return on ad spend: the revenue your ads bring in divided by what you spent on them. $6,000 of sales on $2,000 of spend is a ROAS of 3.00, or 300%.
How do you calculate break-even ROAS?
Take your selling price and subtract product cost, shipping, payment fees and any other cost per order. That is your margin before ads. Break-even ROAS is the price divided by that margin. With a $50 price and a $25 margin, break-even ROAS is 2.0.
Is a ROAS of 3 the same as 300%?
Yes. Both mean $3 of revenue for every $1 of ad spend. Google Ads (opens in a new tab) writes ROAS as a percentage ($5 of sales per $1 of spend is 500%), while Meta reports it as a ratio.
Is ROAS the same as ROI?
No. ROAS looks only at revenue per ad dollar. ROI looks at profit after all costs. Shopify (opens in a new tab) describes ROAS as the more specific, revenue-based version of the ROI idea. That is why you need break-even ROAS: it turns your costs into the ROAS you must beat.
Why is my ROAS in Meta different from my store?
Meta calculates purchase ROAS as purchase conversion value divided by amount spent, counting only sales it attributes to your ads, and it may use statistical modeling when data is missing (Meta Business Help Center (opens in a new tab)). Your store counts every order. Compare both, and judge profit on the numbers you trust most.
Should I include shipping in break-even ROAS?
Include what you pay for shipping and fulfillment. If customers pay for shipping, count that payment in the selling price too, so both sides of the math match.
Sources
Last checked: September 2026Checked by Rokas Steponavičius, founder, October 2026
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