Breakeven ROAS Calculator
Find the exact ROAS where your ads stop losing money, based on your AOV, product costs, shipping, and payment fees — with a profit table across ROAS levels.
Typical card processing lands around 3% all-in.
| ROAS | Ad spend / order | Profit / order | Net margin |
|---|---|---|---|
| 1.5x | $53.33 | −$12.73 | -15.9% |
| 2.0x | $40.00 | $0.60 | 0.8% |
| 2.5x | $32.00 | $8.60 | 10.8% |
| 3.0x | $26.67 | $13.93 | 17.4% |
| 4.0x | $20.00 | $20.60 | 25.8% |
| 5.0x | $16.00 | $24.60 | 30.8% |
Breakeven ROAS = AOV ÷ contribution margin per order. Any campaign below it loses money on first purchase; above it, each order contributes profit before fixed costs.
Frequently asked questions
What is breakeven ROAS?
The ROAS at which an ad campaign neither makes nor loses money on first purchase. Below it, every order funded by ads loses money; above it, each order contributes profit before fixed costs.
How do I calculate breakeven ROAS?
Breakeven ROAS = AOV ÷ contribution margin per order, where contribution margin is what remains of the order value after product cost, shipping, payment fees, and other variable costs. A store keeping 40% of each order has a breakeven ROAS of 2.5x.
Should I include fixed costs like rent or salaries?
No. Breakeven ROAS is a per-order metric, so only variable costs belong in it. Fixed costs matter for overall business profitability, not for judging whether an individual campaign covers its own orders.
How can I lower my breakeven ROAS?
Raise AOV (bundles, upsells), negotiate product and shipping costs, or cut payment processing fees. Fees are often the easiest lever — routing payments through cheaper processors or your own merchant accounts directly widens the margin on every order.