Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Break-even ROAS
2.50
Target ROAS with profit buffer
2.94
Max breakeven ad cost per order
$28.00
Contribution margin %
40.0%
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How to use this
- 1Enter average order value ($).
- 2Enter total variable cost per order ($).
- 3Enter desired profit margin on top (%).
- 4Read your break-even roas on the right — it updates as you type.
- 5Hit Share to keep the scenario or send it to someone.
About this calculator
Break-even ROAS is the ad-spend efficiency you need just to cover your costs, before any profit. It's calculated from your gross margin percentage after all variable costs (COGS, shipping, payment fees), not from revenue alone, which is why two stores with the same 3x target ROAS can have very different actual profitability. This calculator takes your average order value and total variable cost per order, computes your contribution margin percentage, then inverts it to find break-even ROAS, plus shows you the target ROAS needed for a specific profit margin goal on top. Enter AOV, total cost per order (COGS + shipping + payment fees + packaging combined), and your desired profit margin above breakeven. The output shows break-even ROAS, your target ROAS with profit buffer, and the maximum cost-per-acquisition you can afford, which should directly set your Meta or Google Ads bid caps and campaign budgets.
Worked example
Using the values the calculator loads with:
Inputs
- Average order value: 70 $
- Total variable cost per order: 42 $
- Desired profit margin on top: 15 %
Results
- Break-even ROAS: 2.5
- Target ROAS with profit buffer: 2.94
- Max breakeven ad cost per order: $28.00
- Contribution margin %: 40.0%
What each field means
Inputs
- Average order value ($)
- The average order value used in the calculation, measured in $. Starts at 70 $ so you have a working example on load.
- Total variable cost per order ($)
- The total variable cost per order used in the calculation, measured in $. Starts at 42 $ so you have a working example on load.
- Desired profit margin on top (%)
- The desired profit margin on top used in the calculation, measured in %. Starts at 15 % so you have a working example on load. Accepted range: 0–90 %.
Results
- Break-even ROAS
- Returned as a decimal number and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Target ROAS with profit buffer
- Returned as a decimal number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Max breakeven ad cost per order
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Contribution margin %
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
What ROAS should I actually target?
Break-even ROAS with zero profit buffer is only useful as a floor. Most profitable DTC brands target ROAS 30-60% above breakeven to fund growth, cover fixed costs like salaries and software, and build a cash cushion, so use the target ROAS output, not the raw breakeven number, as your campaign benchmark.
Does this account for new customer vs repeat customer value?
No, this is a single-order breakeven. If you have strong repeat purchase rates, you can profitably accept a lower first-order ROAS because later purchases carry no acquisition cost. Pair this with a customer LTV calculation to set acquisition targets more aggressively.
Why is my break-even ROAS so high?
A low contribution margin percentage (thin markup, high shipping cost, or heavy fees) directly inflates required ROAS, since break-even ROAS is just 1 divided by your margin. Fixing margin problems is usually more effective than trying to out-optimize ad platforms to hit an unrealistic ROAS target.
How is this different from MER?
ROAS measures a single campaign or channel's return; MER (media efficiency ratio) measures total revenue divided by total ad spend across everything. Break-even ROAS per order is a building block, but MER is the blended metric you should track for overall profitability.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Blended CAC vs MER Calculator
Total marketing spend against total revenue and new customers, not per-channel math.
Shopify All-In Margin Calculator
True margin after payment processing, shipping, and packaging on your own store.
Repeat Purchase LTV Calculator
Simple LTV from AOV, purchase frequency, margin, and customer lifespan.
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Break-Even ROAS Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/break-even-roas
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/break-even-roas" target="_blank" rel="noopener">Break-Even ROAS Calculator — RevenueLab</a> (2026).</p>
Source: [Break-Even ROAS Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/break-even-roas) (2026).