Paid ads calculator

Break-Even ROAS Calculator

Find the ROAS and CPA your unit economics can actually support.

Reviewed Jul 24, 2026

By the ROI Calculator Hub editorial team

Your assumptions

Currency

Average order value

Revenue collected before returns.Product cost per order

COGS or direct service delivery cost.Shipping and fulfillment

Packaging, pick and pack, and shipping subsidy.Payment fee

Processor and marketplace fees charged on realized revenue.Other variable cost

Support, warranty, royalties, or per-order software.Return and refund rate

Share of order revenue expected to be refunded.Current ROAS

Your current attributed revenue divided by ad spend.Target profit margin

Profit required after advertising as a share of realized revenue.

Estimated result

Break-even ROAS

2.03:1

To keep the target margin, aim for 2.55:1; current economics produce $15 per order.

Decision check: At or above the target profit threshold

Target ROAS: 2.55:1
Break-even CPA: $45
Pre-ad contribution margin: 49.2%
Profit at current ROAS: $15

Three-case comparison

Downside applies an unfavorable 10% change to key drivers. Upside applies a favorable change.

Case	Break-even ROAS
Downside	2.65:1
Current	2.03:1
Upside	1.71:1

Sensitivity check

Estimated primary-result improvement from a favorable 10% change in one driver.

Average order value+8.1%
Product cost per order+6.6%
Shipping and fulfillment+1.7%
Payment fee+0.6%

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Decision scope

What this calculator answers

Break-even ROAS is the minimum attributed revenue required for each unit of ad spend after product cost, shipping, fees, and returns are paid. This calculator builds that threshold from per-order economics and also calculates a higher target ROAS for the profit margin you want to keep. It is designed for ecommerce and other businesses with measurable variable costs.

Transparent math

How the calculation works

Break-even ROAS = Realized revenue ÷ Contribution before advertising

The model reduces order value by the expected return rate, then subtracts product cost, fulfillment, payment fees, and other variable costs. The remaining contribution is the maximum affordable acquisition cost at break-even. Dividing realized revenue by that contribution produces break-even ROAS. Target ROAS reserves the requested profit margin before calculating the advertising allowance.

Worked example

Put the result in context

A $100 order with $32 of product cost, $8 fulfillment, a 3% payment fee, $4 of other variable cost, and an 8% return rate realizes $92 of revenue. The remaining contribution determines the maximum CPA. A 10% target profit margin lowers the affordable ad cost further, so target ROAS is higher than the break-even threshold.

Methodology

Make the estimate defensible

01Use realized revenue after refunds rather than gross order value when returns are material.
02Include every variable cost that increases when another order is fulfilled.
03Set target profit margin before scaling so a merely break-even campaign is not mistaken for success.

Interpretation

What counts as a good result?

A lower break-even ROAS gives the business more room to buy traffic profitably. Do not copy a benchmark from another store: pricing, product cost, returns, fulfillment, and repeat purchase behavior can move the threshold substantially. Compare platform ROAS with a consistent analytics source and monitor marginal performance as spend increases.

Read before deciding

Limitations

The calculation treats average order economics as representative of the product mix.
Attribution error can make reported ROAS differ from incremental advertising return.
Repeat purchase value is excluded unless it is intentionally included in order value.

How this calculator is reviewed

We test the formula against worked examples, document which costs belong in the model, and state where attribution or timing can distort the result. Read our calculation and editorial methodology.

Common questions

Frequently asked questions

What is break-even ROAS?

It is the revenue-to-ad-spend ratio where contribution after variable costs exactly covers advertising, leaving zero profit after ads.

Why is target ROAS higher than break-even ROAS?

Break-even keeps no profit after advertising. Target ROAS reduces the allowable ad cost so the requested profit margin remains.

Should returns be included?

Yes. Use the expected refunded share of revenue, especially for apparel and other categories with meaningful return rates.

Is break-even CPA the same as gross profit per order?

It is the contribution available for acquisition after the variable costs entered. It may differ from accounting gross profit depending on cost scope.

Sources and further reading

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