Break-Even ROAS Calculator (Free)

Minimum ROAS and max CPA you can afford. Type any symbol in the currency box ($, ₹, €, £, USD, INR etc).

(product + packaging)
(returns, freebies, COD/RTO, etc.)
Don’t know exact COGS? Use rough landed cost & average shipping — or the margin % box below.
Only know gross margin %?
If you fill gross margin %, the detailed fields above are ignored.

What is Break-Even ROAS?

Break-Even ROAS (Return on Ad Spend) is the minimum ROAS you need for your campaigns to cover all variable costs without losing money.

  • If your ads achieve exactly this ROAS, you’re breaking even.

  • Anything above it is contribution margin (profit before fixed costs).

  • Anything below it means you’re burning cash per order.

How to Calculate Break-Even ROAS

The formula is straightforward:

Break-Even ROAS = 1 ÷ Gross Margin %

Where Gross Margin % =
(Revenue–VariableCosts)÷Revenue(Revenue – Variable Costs) ÷ Revenue × 100

Variable costs typically include:

  • COGS (product + packaging)

  • Shipping & fulfilment

  • Payment gateway or marketplace fees

  • Returns / COD RTOs

  • Discounts & promotions

    Why Break-Even ROAS Matters

    • Scaling ads: Know how low you can go before scaling becomes unprofitable.

    • Budget planning: Estimate how much you can spend on Meta Ads, Google Ads, or TikTok.

    • Benchmarking campaigns: Compare actual ROAS to your break-even threshold daily.

    • Investor/founder clarity: Shows the true economics of your e-commerce business.

    Break-Even ROAS vs MER

    MER (Marketing Efficiency Ratio) or Blended ROAS = Total revenue ÷ Total ad spend across all channels.
    Break-Even ROAS is campaign or product-level. You need both: MER to see overall profitability, Break-Even ROAS to guide individual campaigns.

    Common Questions

    Q: Do I include fixed costs like rent or salaries?
    No. Break-Even ROAS only includes variable costs tied directly to each order.

    Q: What if my ROAS is below break-even?
    You’re losing money per sale. Either raise prices, cut costs, or pause those campaigns.

    Q: What if I sell on marketplaces like Amazon or Flipkart?
    Yes, include their fees in “platform fees” to get an accurate break-even ROAS.