Break-even ROAS Calculator

Calculate the break-even ROAS and break-even CPA your ads must hit so ad-driven orders stop losing money.

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What is the Break-even ROAS Calculator?

Break-even ROAS is the return on ad spend at which advertising neither makes nor loses money on the first order. Formula: break-even ROAS = AOV ÷ (AOV − variable costs) = 1 ÷ contribution margin, where variable costs are product, shipping, payment and platform fees and any other per-order costs. A 40% contribution margin needs at least 2.5× ROAS; a 25% margin needs 4×.

With a $60 order, $18 product cost, $7 shipping, 3.5% fees and $1 of other costs, contribution is $31.90 (53.2%), so break-even ROAS is 1.88× and you can spend up to $31.90 in ads to win each order.

How to use the Break-even ROAS Calculator

  1. Enter Average order value.
  2. Enter Product cost per order and Shipping & fulfilment per order.
  3. Set Payment & platform fees as a percentage and add Other variable costs per order, such as packaging.
  4. Read break-even ROAS (also shown as a percentage), contribution margin, break-even CPA and the maximum ad spend per $100 of revenue.

Why use AnyShift's Break-even ROAS Calculator

Instant resultsNumbers update as you type — no submit button, no page reloads.
Formula shownEvery result shows how it was calculated so you can check the maths.
Editable assumptionsRates, fees and defaults are pre-filled but always adjustable.
Private by designCalculations run in your browser. Nothing is stored or sent.

Popular use cases

  • Setting the minimum ROAS for Meta, Google or TikTok campaigns
  • Deciding whether a campaign is profitable or just busy
  • Comparing products with different margins before advertising them
  • Explaining to a client why a 2× ROAS can still lose money

Break-even ROAS by contribution margin

Contribution marginBreak-even ROASMax ad spend per $100 revenue
20%5.00×$20
25%4.00×$25
30%3.33×$30
40%2.50×$40
50%2.00×$50
60%1.67×$60
70%1.43×$70

To check a live campaign, compare its reported ROAS with this figure, or use the ROAS calculator to work it out from spend and revenue.

Frequently asked questions

Is break-even ROAS the same as target ROAS?
No. Break-even ROAS is the minimum that leaves zero profit; target ROAS is higher so you also keep the margin you want. Use the target ROAS calculator for that.
Why is my ROAS positive but I still lose money?
Because ROAS measures revenue, not profit. With a 30% contribution margin, break-even ROAS is 3.33×, so a 2× ROAS spends 50% of revenue on ads and loses 20% on every order.
What is a good ROAS for ecommerce?
There is no universal number because it depends on margin. A good ROAS is one above your break-even — for a 50% contribution margin that means more than 2×, and higher still if you want profit after ads.
Should break-even ROAS include overheads?
Usually not. Include only costs that rise with each order; rent, salaries and software are paid from the profit above break-even. Add them per order only if you want a fully loaded figure.
How do I convert ROAS to a percentage?
Multiply by 100: a 1.88× ROAS is 188%, the format Google Ads uses for target ROAS. The calculator shows both.

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Last reviewed: Built for: United States, United Kingdom, Canada, Australia Part of Ecommerce & Sellers

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