Try “wedding”, “budget”, “etsy” or “invoice”.

ROAS & Break-Even ROAS Calculator

See the ROAS you are getting right next to the ROAS you need to make money.

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ROAS & break-even ROAS Pink cells are yours to edit
B10=B3/B2
ABC
Your numbers
Cost of goods, % of price
Results
Your ROAS4Revenue ÷ ad spend
Contribution margin50%Left from each sale before ads
Break-even ROAS2Below this, ads lose money
Orders80
Cost per order (CPA)$12.50
Break-even CPA$25.00
Profit after ad spend$1,000.00
ROAS & break-even ROAS+ Ecommerce Financial Model & Business Plan

Estimates for planning and education only, not financial or tax advice. Always check current platform fees and your own numbers.

ROAS vs break-even ROAS

ROAS is revenue from ads divided by what you spent on them. A ROAS of 4 means $4 of sales for every $1 of ads. But revenue is not profit: product cost, shipping and payment fees come out first.

Break-even ROAS is 1 divided by your contribution margin, the share of each sale left after those costs. With a 50% contribution margin you break even at a ROAS of 2. Anything above it is profit; anything below it loses money, however good the ROAS looks.

What is not included

Returns, discounts and your fixed costs such as software and salaries are left out. If your return rate is high, lower the revenue figure by it. Repeat customers who come back without ads make each paid order worth more over time; the E-commerce Financial Model handles that.

The formulas behind it

Every result cell is a plain spreadsheet formula, so you can check the math or rebuild it yourself.

CellResultFormula
B10Your ROAS=B3/B2
B11Contribution margin=1-B5%-B7%-B6/B4
B12Break-even ROAS=1/B11
B13Orders=B3/B4
B14Cost per order (CPA)=B2/B13
B15Break-even CPA=B4*B11
B16Profit after ad spend=B3*B11-B2

Questions people ask

What is a good ROAS?

One that is above your break-even ROAS. A store with a 50% contribution margin needs at least 2; a store with a 25% margin needs at least 4.

How do I calculate break-even ROAS?

Break-even ROAS = 1 ÷ contribution margin. Contribution margin is the share of the price left after product cost, shipping and fulfillment, and payment processing.

What is the difference between ROAS and ROI?

ROAS compares revenue with ad spend. ROI compares profit with what you spent. A campaign can have a ROAS above 1 and still lose money.

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