Break-Even ROAS Calculator, Minimum Profitable ROAS

By the MoneyCalcsHub editorial teamLast updated:

Find the minimum return on ad spend (ROAS) your campaigns must hit to stop losing money, from your per-order economics.

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Formula

Pre-ad margin = price − COGS − fulfillment − price×fee%. Break-even ROAS = price / margin, because ad spend per order (price / ROAS) must stay below the margin. Equivalently, maximum CPA = pre-ad margin.

Examples

InputResult
$59.99 price, $18 cost, $6.50 ship, 13% feesBE ROAS 2.17 · max CPA $27.69
$29.99 price, $12 cost, $5 ship, 15% feesBE ROAS 3.53 · max CPA $8.49
$99 price, $30 cost, $8 ship, 10% feesBE ROAS 1.94 · max CPA $51.10

Frequently Asked Questions

What is a good ROAS?

Anything above your break-even is profitable per order; most healthy e-commerce accounts target 1.3–1.5× break-even to leave room for overhead, refunds and profit. A 'good' number is meaningless without knowing the margin behind it.

Why do platforms show high ROAS while I still lose money?

Platform ROAS uses attributed revenue, not profit, and often double-counts view-through conversions. Compare platform ROAS against your break-even ROAS and cross-check with blended ROAS (total revenue / total ad spend).

How do refunds factor in?

Reduce your effective margin by the refund rate: if 10% of orders come back, multiply the margin by 0.9 (roughly) or subtract expected refund cost per order. High-refund categories need a noticeably higher target ROAS.

Related Calculators

Discount Calculator (Stackable % Off + Tax)Margin Percentage Calculator (from Cost & Price)
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, investment, tax or legal advice. Results are estimates, actual returns, rates and terms vary. Consult a qualified financial professional before making financial decisions.

How this page is built and kept current. Written and fact-checked by the MoneyCalcsHub editorial team. We do not sell financial products and we accept no payment to change a result, the arithmetic on this page runs in your own browser from the numbers you type.

Method used on this page: arithmetic from the inputs shown; no external rate, tax or legal parameter is required.

Source-dependent figures are reviewed when the cited issuer publishes an update. Worked examples show the formula applied to the listed inputs; interactive results are calculated in your browser.

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