For Shopify & E-commerce

Break-Even ROAS Calculator

Know Your Numbers. Stop Losing Money on Ads.

Calculate the exact Return on Ad Spend (ROAS) you need to cover your product costs and start making a profit.

1Product Details

Note: Break-Even ROAS is the minimum return you need to cover your product and shipping costs. Anything above this is profit.

Break-Even ROAS

-

Minimum ROAS to not lose money

Max CPA

-

Max ad spend per sale

Profit Margin

-

Before ad spend

What is Break-Even ROAS?

Break-Even ROAS is the specific ROAS number where your ad revenue exactly equals your total costs (Product Cost + Shipping + Ad Spend). If your actual ROAS is higher than this number, you are profitable. If it's lower, you are losing money.

The Formula

The simplest way to calculate it is:

Break-Even ROAS = Selling Price / Profit Margin ($)

Example: If you sell a shirt for $50 and your profit (before ads) is $25, your Break-Even ROAS is 2.0 ($50 / $25).

How to Lower Your Break-Even Point

Increase AOV

Use bundles, upsells, and cross-sells to increase the Average Order Value. Higher AOV means better margins.

Lower COGS

Negotiate better rates with suppliers or optimize your packaging to reduce Cost of Goods Sold.

Increase LTV

Focus on email marketing and retention. If customers buy again, you can afford a lower ROAS on the first purchase.