Profit threshold

Break-even ROAS Calculator

Calculate break-even ROAS, target ROAS, contribution margin, and max ad spend per order for ecommerce and dropshipping campaigns.

Formula Break-even ROAS = selling price / contribution profit before ads

Profitability

Calculator

Break-even and target ROAS are based on contribution profit before ad spend.

$20.00 contribution profit on a $49.00 order means 2.45x break-even ROAS.

Break-even ROAS 2.45x Minimum ROAS before profit
Target ROAS 3.87x 15% profit goal
Max ad spend/order $20.00 Before target profit
Contribution margin 40.82% $29.00 non-ad costs
Formula Break-even ROAS = selling price / contribution profit before ads

How to use this calculator

Why break-even ROAS is different from ROAS

A normal ROAS calculator tells you what happened after spend and revenue are known. Break-even ROAS tells you the minimum return you need before launching or scaling.

Costs to include

Include product cost, fulfillment, platform fees, payment processing, refund reserve, and any per-order handling cost. Leaving costs out makes the ROAS target look safer than it is.

  • Use fixed dollar costs for shipping and handling.
  • Use percent costs for platform, payment, and refund assumptions.
  • If contribution profit is negative, the calculator stops instead of showing a fake target.

Break-even ROAS Calculator FAQ

What is break-even ROAS?

Break-even ROAS is the return on ad spend needed for revenue to cover product and operating costs before profit.

Should shipping and refunds be included?

Yes. Any cost that changes per order should be included in contribution profit.

How does ROAS relate to ACoS?

ACoS is ad spend divided by revenue. It is the inverse of ROAS.