Free tool

ROAS and break-even ROAS calculator

ROAS is revenue from ads divided by ad spend. Break-even ROAS is the ROAS where an order pays for its own costs: your price divided by what is left after product cost, shipping and fees. Use the free ROAS calculator below to get both, plus the ROAS that keeps your target profit.

1. Your ROAS

$
$
ROAS
3.00 (300%)

2. Your costs per order

$

Average order value, without sales tax or VAT

$

What the goods cost you (COGS)

$

What you pay per order

%

As a percent of the price

$

Packaging, returns allowance, apps

%

Percent of the price you want to keep

Results

Margin before adsPrice minus product, shipping, fees and other costs
$25.00
Break-even ROASPrice divided by margin before ads
2.00
Break-even CPAMost you can pay in ads per order
$25.00
Target ROASKeeps your target profit
2.50
Target CPAAd cost per order at your target profit
$20.00

Your ROAS of 3.00 clears break-even (2.00) and your target of 2.50.

The calculator starts with the worked example below. Everything runs in your browser; nothing is sent or saved.

The formulas

ROAS = revenue from ads / ad spend

Margin before ads = price - product cost - shipping - fees - other costs

Break-even ROAS = price / margin before ads

Break-even CPA = margin before ads

Target ROAS = price / (margin before ads - target profit)

Target CPA = margin before ads - target profit

Break-even ROAS only exists when the margin before ads is above zero. If an order loses money before any advertising, no ROAS can make it profitable.

Worked example

Say your ads brought in $6,000 of sales on $2,000 of ad spend. Your ROAS is $6,000 / $2,000 = 3.00, or 300%.

Now the costs. You sell at $50. The product costs you $15, shipping $6, payment fees are 3% ($1.50) and other costs $2.50. That leaves $25 per order before ads, a 50% margin.

  • Break-even ROAS = $50 / $25 = 2.00. You can spend up to $25 in ads per order and not lose money.
  • To keep 10% of the price ($5) as profit, target ROAS = $50 / ($25 - $5) = 2.50, a target CPA of $20.
  • A ROAS of 3.00 clears both, so in this example the ads are profitable at the order level.

What is a good ROAS for an online store?

A good ROAS is one above your break-even ROAS, with enough room for the profit you want. There is no universal number: Shopify notes that an acceptable ROAS depends on your profit margins, operating costs and advertising goals. That is why industry averages mislead. 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:

Break-even ROAS by margin before ads
Margin before adsBreak-even ROAS
20%5.00
25%4.00
33%3.00
40%2.50
50%2.00
60%1.67

Three things change what counts as good for you:

  • Which ROAS you read. Meta reports purchase ROAS from the sales it attributes to your ads and may model missing data (Meta Business Help Center). Also check your total store revenue against your total ad spend, so you judge on sales that really happened.
  • Percent or ratio. Google Ads writes ROAS as a percentage: $5 of sales per $1 of spend is 500%. A ROAS of 5.0 and 500% mean the same thing.
  • Repeat purchases. If customers reorder, some stores accept a first-order ROAS below break-even and earn the profit on later orders. Only do this if you know your repeat rate from your own data.

ROAS FAQ

What is a good ROAS for an online store?

One that is above your break-even ROAS with room for the profit you want. There is no single number: as Shopify puts it, an acceptable ROAS depends on your margins, operating costs and goals. A store keeping 50% of each sale before ads breaks even at 2.0; one keeping 25% needs 4.0.

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 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 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). 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.

Last checked: September 2026

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