Break-even ROAS Calculator
Find the minimum return on ad spend required to break even.
Enter your numbers
How to use this calculator
- Enter revenue and costs for the same order or comparable average order.
- Enter platform and payment fees as amounts, not percentages.
- Review contribution margin and the maximum ad spend before setting a target ROAS.
Calculation method
Contribution = revenue − product and fulfillment costs − platform and payment fees − other variable costs. Break-even ROAS = revenue ÷ contribution.
Worked example
Revenue of 80 with 30 product/fulfillment, 8 fees and 2 other costs leaves 40 before ads. Break-even ROAS is 2×: 80 revenue divided by 40 maximum ad spend.
What to check before using the result
This threshold covers the entered variable costs. Fixed overhead, taxes, return rates and attribution differences can require a higher business target. Zero or negative contribution makes break-even through advertising unattainable in this model.
Frequently asked questions
Is a 2× ROAS always profitable?
No. The threshold depends on contribution margin. The same revenue can have very different costs across products.
Why does it say Not achievable?
The entered costs leave no positive contribution to pay for advertising. Review price and costs before adding ad spend.