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
- Enter your average order value. This is what a customer pays, after discounts.
- Add product cost per order, including the cost of goods and any packaging or labels.
- Add shipping, payment fees and other costs such as returns, cash on delivery charges or marketplace commission.
- Enter the profit you want as a percent of revenue to get a target ROAS that leaves real money in the bank.
- Read the table to see what each ROAS level means for profit per ₹1,000 of ad spend.
What Each Result Means
| Result | Formula | Use it for |
|---|---|---|
| Profit per order | Price minus all order costs | Your budget for winning one sale |
| Break even ROAS | Price ÷ profit per order | The lowest ROAS you can accept |
| Break even CPA | Profit per order | The most you can pay for one sale |
| Target ROAS | 1 ÷ (margin minus desired profit) | Your Google Ads or Meta goal |
| Target CPA | Profit per order minus desired profit | Cost per purchase goals |
Tips for Using Break Even ROAS
- Count every cost. Forgetting returns or payment fees is the most common reason a "profitable" campaign loses money.
- Use real order values. Take the average from your store reports, not the list price of your best seller.
- Set Google Ads targets as a percent. A break even ROAS of 1.84x becomes 184% in Target ROAS bidding.
- Think about lifetime value. If customers reorder, you can sometimes accept a first order ROAS near break even to grow faster.
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.