--- title: "Break-Even ROAS Calculator" url: "https://yanivgoldenberg.com/tools/break-even-roas-calculator/" language: en description: "Find the ROAS and cost per order at which your ads stop losing money, from your own order value, product cost, shipping, fees and returns. Formulas shown." --- # Break-Even ROAS Calculator Payback calculators Break-Even ROAS Calculator At what return on ad spend, and what ad cost per order, does an order stop losing money? Enter your own order economics; the formulas are on the page. [Choose another tool](https://yanivgoldenberg.com/free-tools/) What break-even ROAS answers Break-even ROAS is the revenue each unit of ad spend must return before an order covers its own costs. Below it, every extra order your ads buy loses money; above it, ads add contribution. Break-even CPA is the same line expressed as the most you can pay in ads for one order. How the calculator works Contribution per order is the order value kept after returns, minus product cost, shipping and fulfilment, and payment and platform fees. Break-even CPA equals that contribution. Break-even ROAS is the average order value divided by the contribution. Add a target profit per order and the calculator also shows the ROAS and CPA that leave that profit. A worked example with hypothetical numbers An average order of 100 with 10% returns keeps 90. Take away a product cost of 30, shipping of 8 and fees of 3% (3), and each order contributes 49 before ads. The most you can pay in ads per order is 49, and break-even ROAS is 100 รท 49 = 2.04. These numbers illustrate the arithmetic; they are not a benchmark or a client result. What the result does not tell you This is one first order. Repeat purchases, subscription revenue and lifetime value are not counted, so a business with strong repeat buying can run below break-even on the first order on purpose. Platform-reported ROAS also counts sales the ads did not cause; it is not incrementality. Turn the result into a next step Set campaign targets at or above your break-even ROAS, then check returns and fees per channel, because they move the line. If you need someone to run paid acquisition against this number, see [paid media](https://yanivgoldenberg.com/paid-media/). Break-even ROAS questions Why is break-even ROAS not simply 1? A ROAS of 1 only returns the ad spend. The order still has to pay for the product, shipping, fees and returns, so the break-even ROAS is the order value divided by what is left after those costs. Do returns change the target? Yes. Refunded revenue reduces what each order keeps, while the product and shipping costs are usually already spent. The calculator treats them that way, which is the conservative case. Does this include repeat purchases? No. It is a first-order calculation. If customers reliably buy again, compare it with the LTV:CAC calculator before deciding how far below break-even a first order can go. Does the calculator store or send my numbers? No. It runs in your browser. Nothing is sent unless you choose to send the result to me, and a share link keeps your numbers after the # sign, which browsers do not send to this site. Can an AI agent run this calculator? Yes. The same calculation is available as the run_calculator tool on this site's MCP server and at GET /api/v1/calculators?id=roas, with the same inputs, formulas and limits as this page. Connect the result to action [Paid media](https://yanivgoldenberg.com/paid-media/) [Ecommerce growth](https://yanivgoldenberg.com/services/ecommerce-growth/) [LTV:CAC calculator](https://yanivgoldenberg.com/tools/ltv-cac-calculator/) [All free tools](https://yanivgoldenberg.com/free-tools/) Work with me on the next decision I personally review the numbers behind the result, agree the scope with you and deliver the work. Bring the questions the calculator raised. [Talk to me](https://yanivgoldenberg.com/contact/)