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Break-Even ROAS Calculator

Find the minimum ROAS needed to cover product-level variable costs. Enter your numbers below to get an instant result.

Updated: October 5, 2026•No sign-up required•Calculation runs in your browser

Calculate Break-Even ROAS

Average selling price before advertising cost.
Unit cost of the product.
Variable fulfillment and shipping cost per order.
Fixed processor fee per transaction.
Percentage payment-processing fee.
Break-even ROAS
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Maximum CPA at break-even
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Contribution before ads
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Contribution margin
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How to use this break-even roas calculator

Enter values from the same reporting period and use consistent definitions. Then select Calculate. The tool performs the calculation locally in your browser and shows the result immediately.

Formula

Break-even ROAS = 1 ÷ Contribution Margin

Example

If a $100 order leaves $50 before advertising, the contribution margin is 50%. Break-even ROAS is 1 ÷ 0.50 = 2.0x. Spending more than $50 to acquire that order would push the unit below break-even before fixed overhead.

What this metric tells you

Break-even ROAS connects your advertising target to actual unit economics. It is more useful than copying another store’s target because two businesses selling the same product can have very different margins.

How to interpret the result

  • Include every cost that changes with the order and is not already inside COGS.
  • Use blended or product-specific inputs depending on the decision you are making.
  • Add a profit buffer above break-even if the business needs operating profit after advertising.
Important: Calculators provide estimates based on the inputs you supply. They do not replace platform reporting, accounting records, tax advice or professional financial analysis.

Frequently asked questions

Why is my break-even ROAS high?

Usually because your contribution margin is low. High product cost, shipping or payment costs reduce the amount available for advertising.

Is break-even ROAS my target ROAS?

Not necessarily. Break-even is the minimum theoretical level before fixed overhead and desired profit. A sustainable target normally needs headroom.

Should I include taxes?

Include taxes only when they are a true cost to the business and not collected and remitted separately. Accounting treatment varies by market, so use figures that match your reporting.