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Break-Even ROAS Calculator

Find the minimum ROAS your Google, Meta or Amazon ads need before they lose money, and the target ROAS that hits your profit goal.

Your numbers per order

Shopify Payments (Basic, US online card rate) 2.9% + $0.30

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Optional: check a live campaign

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What is break-even ROAS?

ROAS (return on ad spend) is the revenue your ads bring in for every dollar spent. A ROAS of 3x means $3 of sales for each $1 of ads. Revenue isn’t profit, though. Once you subtract product cost, shipping and platform fees, a 3x ROAS can still lose money.

Break-even ROAS is the point where the profit from ad-driven sales exactly pays for the ads. It depends only on your margin:

Break-even ROAS = 1 ÷ Profit margin before ads
Profit margin = (Price − Product cost − Shipping − Fees) ÷ Price

To aim for real profit rather than zero, subtract your target margin first:

Target ROAS = 1 ÷ (Profit margin − Target profit margin)

Worked example

You sell a $50 product on Shopify. It costs $15 to make and $6 to ship. Shopify Payments takes 2.9% + $0.30, so $1.75. Profit before ads is $50 − $15 − $6 − $1.75 = $27.25, a 54.5% margin.

ROAS vs ACoS

ROASACoSProfitable if margin before ads is above…
2x50%50%
3x33.3%33.3%
4x25%25%
5x20%20%

Amazon reports ACoS (ad spend ÷ sales). Google and Meta report ROAS (sales ÷ ad spend). They’re the same number flipped: ACoS = 1 ÷ ROAS. Your break-even ACoS equals your margin before ads. Get that margin for an Amazon product from our Amazon FBA calculator.

Using your target ROAS in ad platforms

All of these depend on accurate conversion values. If GA4 or your pixel double-counts or misses purchases, your reported ROAS is wrong. Check tracking before you change bids.

Frequently asked questions

What is break-even ROAS?

The ROAS where ad-driven sales cover the ad cost and nothing more. It equals 1 divided by your profit margin before ads. Below it, every sale from ads loses money.

How do I calculate break-even ROAS?

Work out profit per order before ads, divide by the price to get your margin, then divide 1 by that margin. A 40% margin gives a break-even ROAS of 2.5x.

What is the difference between ROAS and ACoS?

ROAS is revenue ÷ ad spend. ACoS is ad spend ÷ revenue. A 4x ROAS equals a 25% ACoS.

What is a good ROAS?

One above your break-even ROAS, with room for your profit target. A 3x ROAS is great for a 60% margin product and loss-making for a 25% margin product.

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