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ROAS calculator

Find the break-even ROAS this order needs. If you already have campaign numbers, compare them here.

Numbers stay in your browser. No account or email is required.

This order

Use one product or a consistent average order.

After discounts, before tax collected.
Landed cost for this order.
What you pay to pick, pack and ship. Free shipping is not a zero cost.
Card or Shopify Payments cost on this order.
More costs & target
Box, 3PL pick-pack, or other per-order costs not entered above.
Optional. Leave blank to calculate break-even only.
Optional helper. Writes an amount into payment fees. Rates vary by plan and country.
Example: 0.30 plus the percentage above.

Campaign (optional)

Leave blank if you only need the break-even floor. Use the same window as your ads manager.

Attributed sales from the campaign.
Media cost for the same window.
Try another example
Break-even ROAS1.67× · 167%Revenue needed per $1 of ads to cover this order’s variable costs.
Max ads / order$30.00
Contribution before ads$30.00 · 60.0%
Break-even ACOS60.0%

Contribution before ads = selling price − product − shipping − payment − other variable costs

Break-even ROAS = selling price ÷ contribution before ads

Actual ROAS = ad revenue ÷ ad spend

Break-even ACOS = contribution ÷ selling price

  • Example: 50.00 − 12.00 − 6.00 − 2.00 = 30.00 contribution. 50.00 ÷ 30.00 = 1.67× break-even ROAS, $30.00 max ads per order.
  • The displayed break-even multiple rounds up to two decimals so the floor is never shown too low.
  • A selling price of 0 cannot produce a break-even ROAS.

What ROAS and break-even ROAS mean

ROAS is ad revenue divided by ad spend. A 3× ROAS means $3 of attributed sales for every $1 of ads. Break-even ROAS is different: it is order revenue divided by contribution left after product, shipping, payment, and other non-ad variable costs. If contribution before ads is 40% of revenue, break-even ROAS is 2.5×. A ROAS of 100% only covers ad spend. It does not cover the product.

Sources:Google Ads: About target ROAS biddingandShopify’s break-even ROAS guide.

Worked ecommerce examples

These are fictional planning examples, not typical StoreKitly results.

Healthy margin

Selling price 50.00, product 12.00, shipping 6.00, payment fees 2.00. Contribution is 30.00. Break-even ROAS is 1.67×. You can spend up to 30.00 on ads for that order before variable costs go negative.

Tight margin

Selling price 30.00, product 16.00, shipping 4.00, payment fees 2.00. Contribution is 8.00. Break-even ROAS is 3.75×. Most accounts cannot hold 3.75× at scale, so the offer or cost structure needs work before ads can grow.

Free shipping

Selling price 80.00 with “free” shipping that still costs you 10.00, plus product 24.00and fees 2.00. Contribution is 44.00. Break-even ROAS is 1.82×. The shipping you absorb belongs in the floor even when the product page says free.

What is a good ROAS?

A good ROAS is one above this order’s break-even line. Industry shortcuts such as “4× is good” mix different margins, attribution windows and cost structures. The table is the identity 1 ÷ contribution margin, not a survey.

Contribution margin after non-ad costsBreak-even ROAS
20%5.00×
25%4.00×
33%3.03×
40%2.50×
50%2.00×
60%1.67×

If you fill campaign numbers, this page reads actual ROAS against that floor: below it you lose variable contribution; 1.0–1.5× the floor is tight; 1.5–2.0× can scale gradually; above 2× the floor is strong for these costs. Those bands are a heuristic, not a measured benchmark.

ROAS, ROI, MER and ACOS

  • ROAS is attributed ad revenue ÷ ad spend.
  • ROI is profit after the costs you include, so it moves when you add COGS, fees or ads.
  • MER is all sales in a period ÷ all marketing spend, useful when channel attribution is noisy.
  • ACOS is ad spend ÷ ad revenue, the inverse of ROAS. Google Ads buyers often think in ACOS.

How to use this with Meta or Google Ads

Paste the same revenue definition your ads manager uses, then remember the gaps. Platforms may include tax, shipping paid by the customer, or returning buyers. Attribution windows overlap. Attributed ROAS is not incremental ROAS. Compare only after those definitions match, and treat the max ads / order figure as an advertising allowance, not CAC.

Full guide: set Meta and Google targets from this floor. It maps break-even ROAS into campaign targets and Shopify marketing reports. The calculator on this page still does the math.

How to lower break-even ROAS

Raise price or average order value, cut product or fulfillment cost, or stop paying for shipping you cannot recover. A better conversion rate does not change break-even ROAS per order, but it can raise actual ROAS on the same spend. For the cost structure itself, use themargin calculator.

What this calculator does not include

Fixed overhead, income tax, and future repeat purchases are out of scope. If returns matter, enter retained revenue and the matching net costs for a mature order group; do not subtract refunded revenue again as a second cost. App subscriptions belong here only when they truly vary with the order.

ROAS calculator questions

What is ROAS?

ROAS is return on ad spend: ad revenue divided by ad spend. A 3× ROAS means $3 of attributed sales for every $1 of ads.

How do you calculate ROAS?

Divide advertising revenue by advertising spend for the same window. $3,000 in attributed sales on $1,000 of ads is 3×, or 300%.

How do you calculate break-even ROAS?

Subtract non-ad variable costs from order revenue to get contribution before ads. Divide order revenue by that contribution. If contribution is 40% of revenue, break-even ROAS is 2.5×. A ROAS of 100% only covers ad spend, not the product.

Shopify: Break-even ROAS calculator guide

What is a good ROAS?

A good ROAS is one above your break-even ROAS for the order you are advertising. The same 2.5× result can be profit on a high-contribution product and a loss on a thin-margin one. Use the margin table on this page instead of a generic 4× target.

Is a 4× ROAS good?

Only if 4× is above this order’s break-even floor. A 50% contribution margin breaks even at 2×, so 4× leaves room. A 20% margin breaks even at 5×, so 4× is still a loss after product, shipping and fees.

What is ACOS, and how does it relate to ROAS?

ACOS is ad spend divided by ad revenue, the inverse of ROAS. Break-even ACOS equals the contribution margin before ads. If you can spend 40% of revenue on ads and still cover variable costs, break-even ACOS is 40% and break-even ROAS is 2.5×.

Google Ads: About target ROAS bidding

Should shipping and payment fees be included?

Yes, when you pay them. Free shipping is a marketing label; the label cost still comes out of contribution. Include payment processing. Count each cost once. If customer-paid shipping is in revenue, enter the full shipping cost.

Does break-even ROAS mean the business is profitable?

No. This calculator answers how much advertising one order can support after variable costs. Rent, software, salaries and tax sit below contribution. An order can clear its ads and still leave the store unprofitable.

Can I compare this with Meta or Google Ads ROAS?

Yes, if you use the same revenue definition, date range and attribution window. Platforms may include tax, shipping or returning customers. Attributed revenue is not the same as incremental sales. Maximum ad spend per order is also not CAC.

Do I need to create an account or connect my store?

No. The calculator runs in your browser. Numbers are not sent to StoreKitly, and you do not need an email address to see results.

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