For Meta, Google & TikTok ads
Break-even ROAS calculator
A ROAS calculator that finds the lowest return on ad spend that still makes money, the most you can pay per order, and the ROAS you need for your target margin.
Rates checked October 6, 2026
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Order economics
Per-order revenue and costs, before ad spend.
What a customer pays per order, shipping included.
What the goods in an average order cost you.
Label, packing and fulfilment per order.
Packaging, apps, returns allowance.
Percentage taken from each order.
Per-transaction fee.
Ad performance
Your current results and the margin you want.
Ad revenue ÷ ad spend, from your ads dashboard.
Profit you want to keep after ad spend.
Break-even ROAS
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Where each order goes
Full breakdown
Every amount for one sale, with its share of the total.
| Item | Amount | Share |
|---|
What is break-even ROAS?
ROAS, or return on ad spend, is the revenue your ads bring in divided by what you spent on them. A ROAS of 3.0x means $3 in sales for every $1 of ads. Break-even ROAS is the point where an order's ad cost uses up all of its profit: below it, every ad-driven sale loses money.
Contribution per order = order value − product cost − shipping − fees − other costs
Break-even ROAS = order value ÷ contribution per order
Max CPA = contribution per order
Worked example
An average order is $60. Product cost is $18, shipping and fulfilment $6, Shopify Basic card fees $2.04 and other costs $2. That leaves $31.96 per order for ads and profit.
- Break-even ROAS: $60 ÷ $31.96 = 1.88x.
- Max CPA: $31.96. Pay more than this per order and you lose money.
- Target ROAS for a 15% margin: you want to keep $9 per order, so ads can take $22.96. $60 ÷ $22.96 = 2.61x.
- At a 3.0x ROAS: ad cost is $20 per order, leaving $11.96 profit, a 19.9% margin.
How to use your break-even ROAS
- Set campaign targets above it. Break-even keeps you level; your target ROAS is what makes money. See what counts as a good ROAS for a table by margin.
- Compare products. Low-margin products need much higher ROAS. A product with a 25% contribution margin needs 4.0x just to break even.
- Raise order value. Bundles and free-shipping thresholds raise contribution per order, which lowers the ROAS you need.
- Use real costs. Pull fees from the profit calculator or your statements rather than guessing.
Frequently asked questions
What is a good ROAS for e-commerce?
It depends on your margins. A good ROAS is one comfortably above your break-even ROAS. A store keeping 50% of each order before ads breaks even at 2.0x; one keeping 25% needs 4.0x.
How do I calculate break-even ROAS?
Divide your average order value by the money left per order after product, shipping, fees and other costs. If you keep $30 of a $60 order, break-even ROAS is 2.0x.
What is max CPA?
Maximum cost per acquisition is the most you can spend on ads to win one order without losing money. It equals the money left per order before ads.
What's the difference between ROAS and ROI?
ROAS compares revenue with ad spend only. ROI compares profit with all of your costs. A campaign can have a high ROAS and still lose money if margins are thin.
Should shipping be included in average order value?
Yes, if the customer pays it, because it's part of the revenue your ads platform reports. Include your real shipping cost on the cost side too.