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Break-Even ROAS Calculator

Find the lowest ROAS your ads can run at without losing money. Use your gross margin if you know it, or build it from your order value and costs.

I know my
$
$

What the goods in an average order cost you.

$
%
$

Packaging, marketplace fees, anything paid per order.

Enter your average order value and product cost.

What break-even ROAS tells you

Break-even ROAS is the lowest return on ad spend at which advertising stops losing money. At exactly break-even, the gross profit from ad-driven sales pays for the ads and nothing more. Every campaign needs to beat it, so it is the number to know before setting a target ROAS or a bid.

The formula

Break-even ROAS = 1 ÷ Margin

Use the margin as a decimal: 40% = 0.4.

If you work from an average order instead of a margin, it is the same thing written differently:

Break-even ROAS = Average order value ÷ Profit per order before ads

Profit per order before ads is also your break-even CPA: the most you can spend on advertising to win one order without losing money.

Example

Average order value
$80
Product cost
$32
Shipping
$8
Payment fee (3% of $80)
$2.40
Profit per order before ads
$37.60
Break-even ROAS = 80 ÷ 37.60
2.13x
Break-even CPA
$37.60

From break-even to a target

Break-even pays for the ads and nothing else. Rent, salaries, software and the profit you want all have to come from the gap between your actual ROAS and break-even. Set your target ROAS clearly above break-even, then check live campaigns against it with the ROAS calculator.

If break-even is uncomfortably high, the fastest levers are usually price and product cost, not ad performance. The profit margin calculator shows how a price change moves your margin.

Common mistakes

  • Leaving out per-order costs

    Shipping, packaging, payment processing and marketplace fees all scale with every order. Leaving them out understates break-even.

  • Including fixed costs

    Rent and salaries do not change with one more order. Including them per order distorts break-even; cover them through your target ROAS instead.

  • Using markup instead of margin

    A 100% markup is a 50% margin, not 100%. Plugging markup into the formula gives a break-even ROAS that is far too low.

  • Ignoring repeat purchases

    If customers come back, the first order can run below break-even and still pay off later. Know your repeat rate before relying on that.

Frequently asked questions

What is break-even ROAS?

The ROAS at which ad-driven sales exactly cover their product, fulfilment and ad costs. Below it every sale from ads loses money; above it the ads are profitable.

What is the break-even ROAS formula?

Break-even ROAS = 1 ÷ margin, with the margin as a decimal. Equivalently, average order value ÷ profit per order before ads. A 40% margin gives 1 ÷ 0.4 = 2.5x.

Which costs should I include?

Every cost that grows with each order: product cost, packaging, shipping, payment processing fees and marketplace or platform fees. Leave out fixed costs such as rent and salaries; they belong in an overall profit plan, not in per-order break-even.

Is break-even ROAS the same as target ROAS?

No. Break-even is the floor where you make nothing. A target ROAS sits above it by enough to cover fixed costs and leave the profit you want.

What is break-even CPA?

The most you can pay in advertising to win one order without losing money. It equals the profit per order before ads. This calculator shows it when you enter your costs.

Last reviewed 2 October 2026. This tool runs in your browser; nothing you enter is stored or sent to Boostlix.