Free calculator

Break-even ROAS calculator for ecommerce

Enter your price, product cost, shipping and fees to see the ROAS you need on Meta or TikTok before your ads start making money — and the most you can pay per sale.

Break-even ROAS1.68Below this ROAS (the one Meta or TikTok shows you) you lose money on every sale.
Max CPA$23.79The most you can spend on ads per order without losing money.
Profit per order before ads
$23.79
Margin before ads
59.6%
Net profit per order
$9.79
ROAS Meta would show you
2.85

At a 2.85 ROAS you make money — but look at what's really left.

Calculated on revenue after VAT/tax, minus product, shipping, fees, refunds and ads.

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What is break-even ROAS?

Break-even ROAS is the minimum return on ad spend you need to not lose money on ads. Above it, every sale leaves profit. Below it, you lose money even while sales come in.

Ad platforms report ROAS on gross revenue and subtract nothing. A 2x ROAS can be a disaster for a low-margin store and great for a high-margin one.

The formula

Break-even ROAS = selling price ÷ profit per order before ads

Profit per order before ads is what's left from the sale after tax, product cost, shipping, payment fees and refunds. We use the gross price on top because that's the number Meta uses for ROAS, so you can compare the result directly with Ads Manager.

A worked example

You sell a product for $39.95. It costs $9, shipping is $4.50, payment fees are 2.9% + $0.30 and you lose 3% to refunds. That leaves about $23.79 per order before ads, so your break-even ROAS is 39.95 ÷ 23.79 ≈ 1.68.

If you pay $14 in ads per sale, Meta shows a 2.85 ROAS and you keep about $10 per order. At $25 per sale you're already losing money — even though the ROAS still looks like 1.6.

Why your real ROAS is lower than Meta's

Ad platforms over-attribute, ignore product and shipping costs, and never see refunds. ProfitFly matches your Shopify orders with real Meta and TikTok spend to show your real net profit and true ROAS every day.

FAQ

What is a good ROAS for ecommerce?

Any ROAS above your break-even ROAS is profitable. With a 50% margin before ads, break-even is around 2.0; with 30% it's about 3.3. Use the calculator to find yours.

What is max CPA?

The most you can spend on ads per sale without losing money. It equals your profit per order before ads.

Should I include VAT or sales tax?

If your prices include VAT (as in the EU), enter the VAT rate so it's removed from your revenue. If you show prices before tax, leave it at 0.

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