Break-even ROAS Calculator
Find the minimum ROAS your campaign needs to stop losing money. Enter one product's selling price and variable costs to calculate break-even ROAS, maximum CPA, and profit per order.
Your numbers
Currency changes the display symbol only. Enter every value in the same currency.
Break-even ROAS (BEROAS)
Your campaign must return at least in revenue for every spent on ads to break even.
No viable advertising margin
Your non-advertising costs equal or exceed the selling price. Increase price or reduce costs before buying traffic.
- Max CPA
- Pre-ad margin
- Non-ad costs
One-order revenue split
How much of each sale is already committed
At your tested campaign ROAS
profit per order loss per order · margin
How to calculate break-even ROAS
Break-even ROAS starts with the contribution left from one order before advertising. That contribution is also the most you can pay to acquire the order without losing money.
- Step 1: Max CPA
- Max CPA = Selling price − Non-ad costs
- Step 2: BEROAS
- Break-even ROAS = Selling price ÷ Max CPA
Example
A product sells for 59.99. Product, shipping, payment, and other variable costs total 25.03, leaving a maximum CPA of 34.96. Dividing 59.99 by 34.96 gives a break-even ROAS of 1.72×. A campaign above 1.72× makes money per order; one below it loses money.
Research the product before you price the test
Use Eachspy to compare product prices, active creatives, landing pages, and advertiser history. Then bring your own supplier and fulfilment costs back here to set a realistic acquisition ceiling.
Break-even ROAS questions
What is break-even ROAS?
Break-even ROAS is the minimum return on ad spend a campaign must achieve before an order stops losing money. It is based on the revenue left after product and other variable costs, but before advertising cost.
How do you calculate break-even ROAS?
First subtract product cost, shipping, payment fees, and other variable costs from the selling price to get your maximum break-even CPA. Then divide the selling price by that maximum CPA.
Which costs should I include?
Include every cost that changes when you fulfil another order: cost of goods, shipping, packaging, fulfilment, payment processing, per-order app fees, and expected refunds or discounts. Put anything not listed in the other variable cost field.
Is a lower break-even ROAS better?
Usually, yes. A lower break-even ROAS means more contribution margin is available for advertising. It gives a campaign more room to remain profitable as acquisition costs rise.
What happens when my costs exceed the selling price?
There is no viable break-even ROAS because the order loses money before advertising. Raise the selling price or reduce non-advertising costs before spending on acquisition.
What is the difference between ROAS and break-even ROAS?
ROAS describes an actual or planned campaign's revenue divided by ad spend. Break-even ROAS is the profitability threshold for your unit economics. Actual ROAS must be above that threshold to produce profit per order.
More free tools
- Facebook Interest Finder Search Meta's API for hidden Facebook & Instagram ad interests and their audience sizes.
- Facebook Ad Video Downloader Download videos, images, and carousels from any Facebook or Meta ad in one click.
- Facebook Ad Library Scraper Export any Ad Library search to CSV, with copy, dates, platforms, and links for every ad.
- CPA Calculator Calculate CPA, required ad spend, or conversions from any two campaign metrics.
- Shopify Theme Detector Identify the theme any Shopify store is running, with version and customization details.
- Shopify App Detector See which apps a Shopify store uses for reviews, upsells, email, and more.