Break-Even ROAS Calculator
Find the minimum Return on Ad Spend you need to break even. Know your numbers before spending on ads.
Product Economics
What you pay for the product (COGS)
Your cost to ship (if you offer free shipping)
Payment processing (Shopify + Stripe ≈ 2.9%)
Packaging, returns allowance, etc.
How much profit do you want after ad spend?
Your Numbers
Break-Even ROAS
Minimum ROAS to break even
ROAS Profitability Table
Profit per $1 spent on ads at different ROAS levels:
Frequently Asked Questions
What is break-even ROAS?
Break-even ROAS is the minimum return on ad spend needed to cover your costs without losing money. If your break-even ROAS is 3.0, you need to generate $3 in revenue for every $1 spent on ads to break even. Anything above this is profit.
How do I calculate break-even ROAS?
Break-even ROAS = 1 / Profit Margin (as decimal). For example, if your profit margin is 25% (0.25), your break-even ROAS = 1 / 0.25 = 4.0. You need $4 in revenue for every $1 in ad spend to break even.
What is a good ROAS for ecommerce?
A good ROAS depends on your margins. Generally, 3:1 to 4:1 is considered good for most ecommerce businesses. However, high-margin products (50%+) can be profitable at 2:1, while low-margin products may need 5:1 or higher.
Why is knowing break-even ROAS important?
Knowing your break-even ROAS helps you set realistic advertising goals, evaluate campaign performance accurately, and make data-driven decisions about scaling or cutting ad spend. Without it, you might think a 3x ROAS is great when you actually need 4x to be profitable.
How do I improve my ROAS?
Improve ROAS by: increasing average order value (bundles, upsells), improving conversion rates, better audience targeting, testing ad creative, optimizing landing pages, and increasing product margins. You can also lower break-even ROAS by reducing costs.
