Breakeven ROAS calculator

Breakeven ROAS is your average order value divided by what one order leaves after product cost, shipping and fees. Below it, every sale the ads bring loses money; above it, they pay. It is the same figure as 1 divided by your contribution margin.

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Before tax, without the shipping the buyer pays.
%
%
Breakeven ROAS
1.92
As a percentage192%
Contribution per order41.68
Contribution margin52.1%
Breakeven CPA41.68
ROAS to keep 10% profit2.38
The formula

Exactly what this page computes

contribution = order value − product cost − shipping − order value × fee % − fixed fee − other costs
margin = contribution / order value
breakeven ROAS = order value / contribution = 1 / margin
breakeven CPA = contribution
target ROAS = order value / (contribution − order value × profit %)

Our audit runs the same rule on a connected account as check E-MRG-02: Target ROAS below breakeven.

Questions

How to read it

Should the order value include tax and shipping?+

No. Use what you keep from the order before costs: without sales tax or VAT, and without the shipping the buyer pays you. Count the shipping you pay out as a cost, net of what the buyer paid for it.

Is breakeven ROAS the same as breakeven MER?+

Yes, as long as both use the same revenue and costs. ROAS divides the revenue a platform claims by its spend; MER divides your store’s revenue by all ad spend. Our store checks compare both against this number.

What about repeat purchases?+

This page judges one order. If customers come back, a first order can be worth buying below breakeven: the max CPA calculator lets you count several orders per customer.

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