Break-even ROAS calculator
Estimate break-even and target ROAS and maximum ad spend per order from order revenue and product margin, with optional fees, returns, currency and number format.
Use the same currency for every amount. Changing it does not convert values.
Optional costs and target
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How to use
Enter average order revenue recorded by your ad platform, then provide either the product gross margin or product cost per order. Check or change the preselected currency. You can also add platform and payment fees, shipping and packaging per order, return rate and the profit share to reserve after ads. All amounts must use the same currency; changing the currency does not convert values. Choose a separate number format for your region.
Calculation
Product gross profit equals order revenue times gross margin, or order revenue minus product cost. Contribution before returns equals gross profit minus platform and payment fees and shipping. Estimated contribution per order equals that amount times one minus the return rate. The break-even ad spend limit per order equals this contribution. Break-even ROAS divides recorded order revenue by the ad spend limit. For a target profit share, subtract order revenue times that share from the ad spend limit before calculating target ROAS.
For an order value of 1,000 and a 40% product margin with no other costs, break-even ROAS is 2.5× and the ad spend limit is 400. Reserving 10% after ads lowers the limit to 300 and requires at least 3.34× ROAS. Displayed ROAS thresholds round up and ad spend limits round down.
Limits and privacy
The estimate treats a returned order as contributing zero. It does not separately account for reverse shipping, non-refundable fees, disposal or actual refund losses. The ROAS numerator uses revenue recorded by the ad platform, which can differ from cash received after refunds. Taxes and fixed costs such as staffing and storage are excluded; reserved profit is not actual net profit. Keep revenue and costs on a consistent tax basis and check your platform’s attribution rules.
Calculations stay in your browser. Inputs and results are not added to URLs, persistent storage or analytics. JavaScript is required.