Break-Even ROAS Calculator — What ROAS Do You Actually Need to Make a Profit?
Most stores judge their ads against a target someone else made up — a benchmark, a guru, a “good ROAS” post. That number knows nothing about your costs. This calculator works out your number, from your order value, your product costs, your fees and your refunds.
Your numbers
Enter your shop's numbers — we'll turn them into your exact ROAS targets and strategy below.
Your ROAS targets
These update live as you change your numbers above.
Your exact strategy
Your numbers, turned into plain next steps.
How break-even ROAS works
One formula, no magic.
| Contribution margin | Break-even ROAS |
|---|---|
| 20% | 5.00x |
| 30% | 3.33x |
| 40% | 2.50x |
| 50% | 2.00x |
| 60% | 1.67x |
| 75% | 1.33x |
Questions sellers ask
What is a good ROAS?+
There is no universal “good” ROAS — there is only a ROAS above your break-even. A store with a 60% margin profits at 1.8x, while a store with a 25% margin loses money at 3.5x. Anyone quoting you a benchmark number without asking about your costs is guessing with your money.
Why does the ROAS in Ads Manager mislead?+
Ads Manager reports revenue, not profit. It blends in returning customers who would have bought anyway, counts the full order value before refunds, and never sees your product costs, shipping or fees. A campaign can show a healthy 3x in the dashboard while every order it drives quietly loses money.
What's the difference between break-even and target ROAS?+
Break-even ROAS is the line where ad spend exactly eats your contribution — you make $0. Target ROAS is the line where, after ads, you keep the profit margin you actually want. Run campaigns to your target; treat break-even as the floor you never plan to sit on.
How often should I recalculate?+
Whenever anything in the maths moves: a supplier price change, a new shipping rate, a fee increase, a refund-rate shift, or a change in your average order value. For most stores that's a quick monthly check — and always before a big push like a sale event, when discounts squeeze margin hardest.
Does this guarantee I'll be profitable?+
No — and be wary of any calculator that promises that. This works out the ROAS your per-order economics require, based on the numbers you enter. It doesn't include fixed overheads like rent, salaries or software unless you build them into your per-order costs, and hitting a target ROAS still depends on your ads, creative and store doing their jobs.
Want us to make your ads profitable for you?
We audit your account against your break-even, fix the targeting and creative economics that are dragging ROAS down, and manage your campaigns to your target ROAS — not a benchmark. Send us your numbers and we'll come back with what we'd do first.
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No problem — use one of these instead. Both carry your numbers, your results and your strategy, ready to send to us.