Break-Even ROAS Calculator for Ecommerce | Free Ad Spend Tool
Break-even ROAS (often written BEROAS) is the line between profitable and unprofitable advertising. It is calculated from your own contribution margin, not from a generic industry benchmark.
Max CPA at break-even equals contribution per order before advertising. If contribution margin is 40%, break-even ROAS is 1 ÷ 0.40 = 2.5×; your target should be higher when the business needs a profit buffer.
Max Ad Budget and Commercial Break-Even ROAS
Use the calculator above for one acquired order. Use the model below when you need a monthly ad ceiling after fixed costs, paid-revenue share and a target profit margin. These are planning guardrails, not the ROAS field reported by Meta, Google or TikTok.
Calculate the order-level floor and the business-level ad ceiling
Change the assumptions to see why a store can have one break-even ROAS for an order and a different commercial ceiling after fixed costs.
See the contribution pool before you choose an ad target
Illustrative scenario: $60 revenue, $18 COGS, $7 fulfillment, $2 payment/platform fees, $1 refund reserve, and break-even ad spend of $32.
The order-level break-even ROAS is $60 ÷ $32 = 1.88×. If the campaign instead reaches 2.5×, ad spend falls to $24 and $8 remains before fixed overhead. A target above break-even creates a profit buffer; it does not change the underlying contribution pool.
How this free tool works
Calculate break-even ROAS (BEROAS) and max CPA for ecommerce campaigns using product cost, shipping, fees and ad spend. Free, instant and no signup. The result is designed to be transparent: you can see the inputs, the formula and the assumptions instead of receiving a black-box score.
Contribution margin = (revenue − variable costs) ÷ revenue. Break-even ROAS = 1 ÷ contribution margin. Target ROAS = 1 ÷ (contribution margin − target profit margin).
This calculator answers the order-level question. For Max Ad Budget, low/mid/high-margin scenarios, a profit waterfall and the difference between order-level and commercial break-even, read the full break-even ROAS ecommerce guide.
Best for
- Ecommerce operators scaling paid traffic
- Media buyers who need a defensible target ROAS
- Founders checking whether a reported ROAS is actually profitable
Frequently asked questions
What is break-even ROAS?+
It is the minimum revenue-to-ad-spend ratio at which contribution profit covers ad spend. Below it, the campaign loses money before fixed overhead.
Is break-even ROAS the same as target ROAS?+
No. Break-even is zero profit. Target ROAS should be higher if you want to keep a specific profit margin.
Why is my break-even ROAS so high?+
Thin margins, high shipping or payment fees, returns and low average order value all increase the ROAS required to break even.
How do you calculate break-even ROAS?+
Break-even ROAS = 1 ÷ contribution margin before ads. If an order keeps $40 after product, fulfillment, payment fees and other variable costs on $100 of revenue, its contribution margin is 40% and break-even ROAS is 2.5×.
What costs should I include in break-even ROAS?+
Include costs that change with the order: COGS, fulfillment or shipping, payment and platform fees, discounts, and a realistic refund or return reserve. Keep payroll, rent and other fixed overhead separate unless you are modeling a commercial ad budget.
What is maximum CPA at break-even?+
Maximum CPA at break-even is the contribution dollars left from one order before advertising. If a $60 order leaves $24 after variable costs, $24 is the most you can pay to acquire that order before it reaches zero contribution; a target profit reduces that ceiling.
Does break-even ROAS include fixed costs?+
The order-level number does not. Add monthly revenue, paid-revenue share and fixed costs to the commercial model to estimate a business-level maximum ad budget and the ROAS floor needed to keep the whole business above zero profit.
References and methodology
We use primary documentation where available and treat calculators as planning aids, not guarantees. Check the linked source when a platform changes its rules.
- Google Ads: About return on ad spend
Official ROAS context from Google Ads. Checked August 17, 2026.
- Amazon Ads: Return on ad spend
A platform-level explanation of ROAS and ad efficiency. Checked August 17, 2026.
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