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ROAS & break-even calculator

Enter what a sale costs you and what your ads brought in. See your ROAS next to the ROAS you need to break even, and the most you can pay per order.

Per-order amounts are for one order at the selling price. Use any currency, as long as it is the same everywhere.

Unit economics

Cost per order (before ads)22.72

product + shipping + price × fee% + fixed fee + other

Profit per order before ads26.28

price − cost per order

Margin53.6%

profit per order ÷ price

Break-even ROAS1.86×

1 ÷ margin

Max cost per acquisition26.28

= profit per order before ads; pay more per order and you lose money

Your ads

ROAS3.50×

revenue ÷ ad spend

Orders71.4

revenue ÷ price

Cost per acquisition14.00

ad spend ÷ orders

Profit after ads877.07

orders × profit per order − ad spend

ROAS for 15% profit2.59×

1 ÷ (margin − target%)

About the roas and break-even calculator

ROAS (return on ad spend) only means something next to your break-even ROAS — the ROAS at which ads exactly pay for themselves after product, shipping and payment costs. This calculator works out both, plus your margin, profit per order and the most you can pay to acquire one order. It also answers the reverse question: what ROAS do you need to keep a target percentage of revenue as profit.

How to use it

  1. Enter your selling price and what one order costs you: product, shipping, payment fees and anything else.
  2. Enter your ad spend and the revenue those ads brought in.
  3. Compare your ROAS with your break-even ROAS: green means the ads are profitable.
  4. Type a target profit percentage to see the ROAS you need to hit it.

Questions

How do I calculate break-even ROAS?
Divide 1 by your margin before ads. If an order leaves you 40% of the price after product, shipping and fees, your break-even ROAS is 1 ÷ 0.40 = 2.5.
What is a good ROAS for e-commerce?
Any ROAS above your break-even ROAS is profitable, so there is no universal good number. A store with a 70% margin breaks even at about 1.4, while one with a 25% margin needs 4.
What is the difference between ROAS and break-even ROAS?
ROAS is what your ads actually returned: revenue ÷ ad spend. Break-even ROAS is what they need to return to cover costs. You want the first to be higher than the second.
How do I find my maximum cost per acquisition?
It equals your profit per order before ads: price minus product, shipping, fees and other costs. Paying more than that to win an order loses money on it.
Why does it say break-even is not possible?
Your costs per order are equal to or higher than the price, so every sale already loses money before ads. No ROAS can fix that; raise the price or cut costs first.