Break-Even ROAS Calculator
Your minimum ROAS after COGS, shipping, fees, and returns, and the true profit (or loss) on every ad-driven order.
Example scenario—not a forecast or verified benchmark. Enable JavaScript to edit inputs, view charts, save locally and export your analysis.
Example inputs
- Average order value
- 85
- Product cost (COGS) as % of order value
- 30
- Fulfillment + shipping cost per order (net of shipping charged)
- 11
- Payment processing fee
- 2.9
- Payment fixed fee per order
- 0.3
- Other % fees (apps, marketplace, affiliate)
- 2
- Revenue lost to returns and refunds
- 8
- Other variable cost per order (inserts, support)
- 1.5
- Current ROAS (platform-reported)
- 2.8
- Monthly ad spend
- 60,000
- Target profit after ads (% of revenue)
- 10
- Expected repeat orders per new customer (12 months)
- 0.6
Example results
Break-even ROAS is 2.38x (max CPA $35.74); at your 2.8x you make $5.38 per first order, about $11K a month.
- Break-even ROAS
- 2.38x
- ROAS for 10% profit
- 3.12x
- Profit per first order after ads
- $5.38
- Monthly profit after ads
- $10,629
- Max CPA (break-even)
- $35.74
- Current CPA
- $30.36
- Contribution margin before ads
- 42%
- 12-month break-even ROAS (with repeats)
- 1.49x
What stands out
At 2.8x ROAS you make $5.38 per order
That is $10,629 a month on $60,000 of spend. You need 3.12x to hit your 10% target.
Only 42% of each order is left to pay for ads
Of a $85 order: COGS $25.50, returns $6.80, shipping $11, fees $4.47. So your max CPA is $35.74.
With 0.6 repeat orders, 12-month break-even ROAS falls to 1.49x
Each new customer is worth $26.82 in 12-month profit after the first-order ad cost. Only bid toward this if your repeat rate is measured, not hoped for.
Next actions
- Set 2.38x as the hard floor and 3.12x as the scaling target in every ad platform; pause ad sets below the floor for 7+ days.
- Measure blended ROAS (total revenue / total ad spend) from your store, not platform-reported ROAS, which often over-credits ads.
- Negotiate shipping rates and COGS; every point of contribution margin lowers the ROAS you need.
Model assumptions & limitations
- Break-even ROAS = order value / contribution margin per order (after COGS, returns, shipping, fees, and other variable costs).
- ROAS is measured on gross order value; returns are treated as a cost so the ROAS figure matches what ad platforms report.
- Fixed costs (salaries, rent, software) are excluded; a business needs ROAS above break-even to cover them.
- 12-month figures assume repeat orders carry the same contribution margin and need no extra paid acquisition.