Break-even ROAS calculator

Enter an average order and what it costs you to fulfil it. You'll get the ROAS below which your ads lose money, and the most you can pay per order.

Average order value

What the customer pays, excluding sales tax or VAT.

Product cost per order

Landed cost of the goods in an average order (COGS).

Shipping and fulfilment per order

Postage, pick and pack, packaging.

Payment fee

Fixed fee per order

Break-even ROAS: 1.84×; Below this, every ad-driven order loses money.
Break-even CPA: $43.38; Most you can pay per order.
Contribution margin: 54.2%; $43.38 per order

How to calculate break-even ROAS

First work out how much of an average order you keep after the costs that come with every sale. That's the contribution margin.

contribution margin = (order value − product cost − shipping and fulfilment − payment fees) ÷ order value

Break-even ROAS is one divided by that margin:

break-even ROAS = 1 ÷ contribution margin

Worked example

An average order is worth $80. The products in it cost $24, shipping and packing cost $10, and the payment processor takes 2.9% + $0.30, which is $2.62.

contribution = $80 − $24 − $10 − $2.62 = $43.38
margin = $43.38 ÷ $80 = 54.2%
break-even ROAS = 1 ÷ 0.542 = 1.84×

Any campaign below 1.84× loses money on the first order. The same answer as a cost: you can pay up to $43.38 in ads per order (the break-even CPA) before the order stops paying for itself.

When there is no break-even ROAS

If product, shipping and fees add up to more than the order value, every sale loses money before you spend anything on ads. No ROAS fixes that. The calculator shows "None" in that case, and the fix is price, costs or basket size.

Compare your answer with your actual return in the ROAS calculator.

With Ordinary

Break-even ROAS per product, not one blended guess.

A single break-even ROAS assumes every order has the same margin. They don't: a campaign that sells your thinnest-margin product needs a much higher ROAS than one selling your best.

Ordinary reads the cost per item from Shopify, adds your per-order shipping, fulfilment and payment fees, and costs every order. Profit by channel, product and campaign sits next to revenue in the reports you already use, so you see which campaigns clear their own break-even.

Connect your store How profit tracking works

Frequently asked questions

What is break-even ROAS?

Break-even ROAS is the return on ad spend at which an ad-driven order makes exactly zero profit. Below it, every sale your ads bring in loses money once product, shipping and payment costs are paid. Above it, the campaign is profitable on the first order.

What is the break-even ROAS formula?

Break-even ROAS = 1 ÷ contribution margin, where contribution margin is the share of the order value left after product cost, shipping, fulfilment and payment fees. A 50% margin gives a break-even ROAS of 2×.

What's the difference between break-even ROAS and break-even CPA?

They describe the same point. Break-even CPA is the most you can pay in ads for one order, which equals the contribution per order. Break-even ROAS is the order value divided by that CPA.

Should I target exactly my break-even ROAS?

Only if the goal is acquisition and you're confident customers come back. At break-even the first order earns nothing, so the profit has to come from repeat purchases. Most brands set a target ROAS somewhat above break-even to cover fixed costs and leave a profit.

Should I use gross margin or contribution margin?

Contribution margin. Gross margin usually only subtracts the cost of goods, which leaves shipping, packaging and payment fees out and makes your break-even ROAS look lower than it really is.