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ROAS and break-even ROAS calculator
Enter the share of each sale that is margin, your average order value and the profit you want. You get break-even ROAS, target ROAS and the highest cost per order (CPA) you can pay.
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Margin is what is left of a sale after product cost, shipping and payment fees, before ad spend. Use margin, not revenue.
At your current ROAS: Each $1 of ads brings about $0.20 of profit before other costs.
This is an estimate, not a promise. Real results depend on your website, offer, competition and season. Benchmarks: AdAce internal estimate, updated 2026-10-31. Inputs and results are calculated in your browser; nothing is sent or stored.
The formulas
- Break-even ROAS = 1 ÷ margin
- Target ROAS = 1 ÷ (margin − the profit you want)
- Break-even CPA = average order value × margin
How to use the result
- Work out your margin per order: price minus product cost, shipping and payment fees, as a share of the price.
- Read the break-even ROAS. Below it, every ad dollar loses money. With a 40% margin it is 2.5×.
- Set the profit you want after ads and read the target ROAS and target CPA. Aim at those numbers, not at break-even.
- Compare them with your account. Platform ROAS counts attributed revenue, so for decisions about scaling also look at marginal CPA, as the guides below explain.
Common mistakes
- Treating revenue as profit. A 4× ROAS on a 20% margin loses money, because break-even is 5×.
- Leaving returns, shipping and payment fees out of the margin.
- Using one ROAS target for every product. Margins differ, so calculate per product group.
- Reading average ROAS as proof that the next dollar pays back. The return on added spend is usually lower: check marginal CPA before you scale.
Common questions
How do you calculate break-even ROAS?
Divide 1 by your margin as a decimal. With a 25% margin, break-even ROAS is 1 ÷ 0.25 = 4. At that ROAS the ad spend equals the margin you earn, so you make no profit before other costs.
What is a good ROAS?
There is no universal good ROAS. It depends on your margin, repeat purchases and goals. Anything above break-even ROAS makes money on the first order, and target ROAS adds the profit you want.
What is the difference between ROAS and ROI?
ROAS is revenue divided by ad spend. ROI counts profit after all costs. A campaign can have a high ROAS and a negative ROI when the margin is thin.
How does break-even ROAS relate to CPA?
Break-even CPA is your average order value times your margin. It is the most you can pay for one order without losing money, and it equals the order value divided by the break-even ROAS.
Does this include customer lifetime value?
No. It looks at the first order only. If customers buy again you may accept a lower first-order ROAS, but base that on your own repeat-purchase data.
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