Break-even ROAS calculator

Most advertisers judge campaigns by ROAS alone, but a "good" ROAS means nothing without your margin. This calculator turns your unit economics into the two numbers that actually decide whether ads are profitable: break-even ROAS and maximum CPA.

1. Enter your per-order numbers

Use your average order value, not your highest-priced product. For costs, include everything it takes to deliver one order: cost of goods, packaging, pick-and-pack and shipping you pay for. Payment and platform fees are entered as a percentage of the order.

2. Read your break-even ROAS and max CPA

Break-even ROAS = order value ÷ gross profit per order. Max CPA is simply that gross profit. If your ads platform reports a ROAS below break-even, or a CPA above your max, the campaign is losing money on the first order.

3. Set a target margin

Breaking even isn't the goal. Enter the profit margin you want to keep after ad costs and the calculator gives you a target ROAS and target CPA to set as bid targets or campaign KPIs.

4. Check your real campaigns

Add your ad spend and the revenue attributed to it to see actual ROAS, POAS (profit on ad spend) and net profit. Remember that platform-reported revenue is often over-attributed, so compare against your store's own numbers where you can.

The formulas

• Gross profit per order = order value − product & fulfilment cost − fees
• Break-even ROAS = order value ÷ gross profit per order
• Target CPA = gross profit per order − (order value × target margin)
• Target ROAS = order value ÷ target CPA
• POAS = (orders × gross profit per order) ÷ ad spend