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Break-Even ROAS Calculator (FREE TOOL)

Break-even ROAS is the return on ad spend where your ads pay for themselves and nothing more: 1 divided by your contribution margin. Enter your costs per order or your margin. It runs in your browser.

Work it out

Built and checked by Marián Cabadaj. Last checked October 2026.

The worked examples on this page were checked against the same code the tool runs.

The short answer

  • Break-even ROAS = 1 / contribution margin. At a 40% margin you need 2.50x to break even; at 25% you need 4.00x.
  • Contribution margin is what one order leaves after product cost, shipping and payment fees. Gross margin does not take out shipping and fees, so it gives a break-even that is too low.
  • Break-even CPA is the same line in dollars: the contribution per order. An order that costs more than that in ads loses money.

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How to calculate break-even ROAS

Break-even ROAS = 1 / contribution margin, or order value / contribution per order. Both give the same number. Some people spell it "breakeven ROAS"; the formula is the same.

Worked example: an order is worth $50. The product costs $20, shipping costs $5 and payment and other fees come to $2.50. The order leaves $50 - $20 - $5 - $2.50 = $22.50, a contribution margin of 45%. Break-even ROAS is 50 / 22.50 = 2.22x, and break-even CPA is $22.50.

Now read a real ROAS against it. At 3x, every $1 of ad spend brings $3 of revenue, and 45% of that revenue is left after costs: $1.35. Take off the $1 you spent and you keep $0.35. At 2x, the same $1 brings $2, which keeps $0.90, so you lose $0.10 on every $1. The calculator does this sum for you when you type your current ROAS.

Break-even ROAS by contribution margin

1 divided by the margin, to two decimals. Find your margin, read the ROAS you have to beat.

Contribution margin Break-even ROAS
20% 5.00x
25% 4.00x
30% 3.33x
40% 2.50x
50% 2.00x
60% 1.67x
70% 1.43x

Use contribution margin, not gross margin

Gross margin is price minus product cost. On the $50 order above it is ($50 - $20) / $50 = 60%, and 1 / 60% is 1.67x. That number says a 2x campaign makes money. It does not: at 2x the real order loses $0.10 on every $1 of ad spend, because the $5 of shipping and $2.50 of fees still come out of each sale.

So the margin that goes under the line is contribution margin: what is left of an order after every cost that grows with each sale. Fixed costs such as rent and salaries stay out, because one more order does not change them. If you only know your price and product cost, the profit margin calculator works out your margins first. To see your current return on ad spend from spend and revenue, use the ROAS calculator.

What goes in each field

  1. Order value

    What a customer pays for one order, after discounts and before sales tax. Use your average order value when orders vary.

  2. Product cost

    What the goods in that order cost you to buy or make and get into your stock.

  3. Shipping

    What you pay to send the order. If the customer pays for shipping, that money is in the order value, so count your full cost here.

  4. Payment and other fees

    Payment processing, packaging and any per-order app fees, in dollars. Turn a percentage fee into dollars on your order value first.

Break-even ROAS is the floor, not the target

At break-even ROAS the ads pay for themselves and nothing more. That is the floor under every campaign, not a goal. To keep a slice of revenue as profit, take that slice off your margin before you divide: target ROAS = 1 / (contribution margin - profit you want to keep).

On a 40% margin, break-even is 2.50x. To keep 10% of revenue as profit, you need 1 / (40% - 10%) = 3.33x. If you want more profit than the margin holds, no ROAS can deliver it.

Read the break-even next to a ROAS from the same source every time: the same ad account, the same attribution setting, the same dates. To check the cost of one order instead of the return on the whole budget, the CPA calculator compares your CPA with the same break-even line.

Break-even ROAS calculator: FAQ

What is break-even ROAS?
Break-even ROAS is the return on ad spend at which your ads pay for themselves and make no profit and no loss. It is 1 divided by your contribution margin. At a 40% margin, break-even ROAS is 2.50x: every $1 of ad spend has to bring back $2.50 of revenue before you make anything.
How do you calculate break-even ROAS?
Take your order value, subtract product cost, shipping and payment fees, and divide the order value by what is left. A $50 order that leaves $22.50 has a break-even ROAS of 50 / 22.50 = 2.22x. If you already know your contribution margin, divide 1 by it: 1 / 45% gives the same 2.22x.
What is a good break-even ROAS?
A lower one, because it is easier to beat. Break-even ROAS comes from your own margin, so there is no industry number to aim for: a 1.67x break-even at a 60% margin leaves room for a weak campaign; a 5.00x break-even at a 20% margin does not. Raising your price or cutting cost per order lowers it.
What is the difference between break-even ROAS and target ROAS?
Break-even ROAS is the point where ads stop losing money. Target ROAS adds the profit you want to keep: 1 / (margin - profit share). On a 40% margin, break-even is 2.50x, and keeping 10% of revenue as profit needs 3.33x.
How is break-even CPA related to break-even ROAS?
They are the same line in two units. Break-even CPA is the contribution per order, the most one order can cost in ads before it loses money. Order value divided by break-even CPA gives break-even ROAS: $50 / $22.50 = 2.22x.
Does this calculator send my numbers anywhere?
No. The arithmetic runs in your browser. Nothing is uploaded, no account is needed, and there is nothing to sign up for to use it.

How we checked

  • The formula is break-even ROAS = order value / contribution per order, which is the same as 1 / contribution margin. No benchmark is used: the only inputs are your own numbers.
  • Every figure on this page was worked out by hand first, then checked against the calculator's own code in 27 cases, including a ROAS exactly on break-even, costs as high as the order value, and text typed into a number field.
  • Exactly on break-even counts as break-even, not as a loss. Negative numbers and text count as an empty field.
  • Last checked: 5 October 2026.

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