Free toolsBreak-even ROAS calculator
Break-even ROAS calculator for Meta and Google ads
Find the return on ad spend you need before an order makes money, and the most you can pay per purchase.
Change any number and the results update. Everything stays in your browser; nothing is saved or sent.
What is break-even ROAS?
ROAS (return on ad spend) is revenue divided by ad spend. A 3x ROAS means $3 in sales for every $1 spent. Break-even ROAS is the ROAS where an order makes exactly $0 profit: below it you lose money on every sale, above it you make money.
Formula: break-even ROAS = selling price ÷ gross profit per order, where gross profit = price − product cost − shipping − payment fee − other costs.
How to use the break-even ROAS calculator
- Enter your selling price and your costs per order.
- Read your break-even ROAS: that's the minimum your ads must hit.
- Set a target profit per order to see the ROAS and the max cost per purchase you need for that profit.
Example
A $39 product with $9 product cost, $4 shipping, 2.9% payment fee and $2 other costs leaves about $22.87 gross profit. Break-even ROAS is 39 ÷ 22.87 ≈ 1.71x. Ads below 1.71x lose money on every order.
How to lower your break-even ROAS
- Raise average order value with quantity breaks, bundles or gifts.
- Lower product or shipping costs.
- Raise the price if your page and brand support it.
More: 15 product page fixes that lift conversion and how to raise average order value.
FAQ
What is a good ROAS for Shopify?
Any ROAS above your break-even ROAS is profitable on the first order. What's "good" depends on your margin, so calculate your own instead of using an industry average.
Is break-even ROAS the same in Meta Ads Manager?
Ads Manager reports the ROAS it can track. Compare it with your Shopify numbers too, since tracking misses some sales.