Free tool

Break-even ROAS calculator

Break-even ROAS is the return on ad spend at which your advertising neither makes nor loses money once product costs, fees, shipping and returns are paid. Below it, every sale loses money. Above it, you're profitable. Enter your own numbers to find yours.
AED

What a typical customer pays per order.

% of price

What the product costs you to make or buy.

% of price

Card fees, Shopify or marketplace fees.

AED
% of orders
% of price

Used for your target ROAS. Set to 0 to see break-even only.

Break-even ROAS–Below this, ads lose money
Target ROAS for your profit goal–
Most you can pay for one sale (break-even)–
Profit per order before ads–

This calculator gives estimates for planning only, based on the numbers you enter. It doesn't include fixed costs such as rent, salaries or management fees, and it isn't financial advice. Real results vary.

How to use your result

  • Compare it with real ROAS, not platform ROAS. Ad platforms can over-count sales. Check revenue against actual orders before deciding a campaign is profitable. ROAS explained →
  • Use the target figure to set campaign goals. Google Ads "target ROAS" and Meta cost caps work best when they're based on your real margins.
  • Separate brand from new customers. Brand searches often show high ROAS because those buyers already knew you. Judge new-customer campaigns against your break-even on their own.
  • Remember lifetime value. If customers come back again and again, a first sale near break-even can still be very profitable over time.

The formulas

Profit per order before ads = order value × (1 − product cost % − fees % − returns %) − shipping.
Break-even ROAS = order value ÷ profit per order before ads.
Break-even cost per lead = customer value × margin × lead-to-customer rate.

Is your ROAS above break-even?

Email us your numbers and where you advertise. We'll tell you honestly whether your campaigns are making money, and what we'd change first.

Email us