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Break Even ROAS Calculator

Enter your selling price and costs per order. Get the lowest ROAS your ads can run at without losing money, plus the target ROAS you need for the profit you want.

Price and Costs per Order

Your Break Even Point

0Profit per Order Before Ads
0Margin
0Break Even ROAS
0Break Even ROAS %
0Break Even CPA
0Target ROAS
0Target CPA
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Good to know
  • Below break even ROAS, every sale from ads loses money
  • Use the target ROAS percent directly in Google Ads bidding

Profit at Different ROAS Levels

What Is Break Even ROAS?

Break even ROAS is the return on ad spend where your ads pay for themselves and nothing more. Above it, every sale from ads adds profit. Below it, every sale loses money once you pay for the product, delivery, fees and the ad.

The formula is break even ROAS = 1 ÷ profit margin, where profit margin is the share of the selling price left after all the costs of one order, before ads. A 50% margin means you break even at 2x ROAS. A 25% margin means you need 4x.

How to Use This Calculator

  1. Enter your average order value. This is what a customer pays, after discounts.
  2. Add product cost per order, including the cost of goods and any packaging or labels.
  3. Add shipping, payment fees and other costs such as returns, cash on delivery charges or marketplace commission.
  4. Enter the profit you want as a percent of revenue to get a target ROAS that leaves real money in the bank.
  5. Read the table to see what each ROAS level means for profit per ₹1,000 of ad spend.

What Each Result Means

ResultFormulaUse it for
Profit per orderPrice minus all order costsYour budget for winning one sale
Break even ROASPrice ÷ profit per orderThe lowest ROAS you can accept
Break even CPAProfit per orderThe most you can pay for one sale
Target ROAS1 ÷ (margin minus desired profit)Your Google Ads or Meta goal
Target CPAProfit per order minus desired profitCost per purchase goals

Tips for Using Break Even ROAS

Next Steps

Once you know your floor, check live results with the ROAS calculator. Learn how bidding works in our Performance Max optimization guide and value based bidding explained, and track true order values with GA4 ecommerce events.

Frequently Asked Questions

1How do I calculate break even ROAS?

Divide 1 by your profit margin before ads. If you keep 40% of each sale after product, shipping and fees, your break even ROAS is 1 ÷ 0.40 = 2.5x, or 250%.

2Should I include shipping and fees?

Yes. Include every cost that comes with one order: product, packing, shipping, payment fees, marketplace commission and an allowance for returns. Leaving any out makes your break even ROAS look lower than it really is.

3What is the difference between break even ROAS and target ROAS?

Break even ROAS is where you make zero profit. Target ROAS is higher, set so that you also keep the profit margin you want after ad costs.

4Is my pricing data private?

Yes. The break even ROAS calculator runs entirely in your browser. Your prices and costs are never uploaded.

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