Check before acting
- Calculate contribution from the same revenue scope used by the ad platform.
- Use channel-specific return and refund data where possible.
- Set campaign targets above break-even to leave room for overhead, tax and volatility.
Business
Break-even ROAS Calculator
Find maximum ad cost per order, break-even ROAS and ACOS, plus the ROAS needed to preserve your target margin.
01
Enter your details
Results update instantly as you type.
DECISION GUIDE
How to use this result in a real decision.
What return on ad spend is required after product economics—not just ad-platform revenue? Break-even ROAS is revenue divided by contribution before ads. A practical campaign target must be higher because break-even leaves no operating profit.
WORKED EXAMPLE
$80 order with $50.40 of non-ad deductions
- Inputs
- $28 product cost, $8 fulfillment and shipping, 13% fees, 4% returns reserve and a 15% target margin.
- Calculated result
- Contribution before ads is $30.40, so break-even ROAS is about 2.63×. Preserving a 15% margin leaves $18.40 for ads and requires about 4.35× ROAS.
- Decision meaning
- A platform result between 2.63× and 4.35× may avoid an order-level loss but still miss the chosen profit target.
Not included automatically
- Incrementality and attribution-window differences
- Creative, agency and marketing software costs
- Cash-flow timing, inventory constraints and customer lifetime value
How to use it
A better estimate in three steps.
- 01
Enter revenue and all non-ad costs for one order.
- 02
Include percentage fees and a realistic returns reserve.
- 03
Use target ROAS—not break-even ROAS—for campaign decisions.
Core formula
The math behind the result.
Break-even ROAS = revenue per order ÷ contribution before advertisingQuestions
Useful before you decide.
What does break-even ROAS mean?
It is the lowest return on ad spend at which the order makes zero profit after the costs entered.
Why is target ROAS higher?
A campaign must spend less than the break-even ad allowance to leave room for your desired profit.
How should I estimate returns reserve?
Use recent channel-specific return and refund data where possible. A rough guess can materially overstate profitability.